By Nicholas Gerschutz, associate attorney, Barrett, Easterday, Cunningham & Eselgroth, LLP
Are you a member of a limited liability company? Were you attracted to the LLC because it gave you flexibility in running your business while limiting your personal liability in the event your company was sued? Many business owners set up LLCs for these reasons. However, LLCs have their limitations, and an LLC member may still be held personally liable if a plaintiff “pierces” the LLC’s limited liability structure.
“Piercing the corporate veil” occurs when a business owner, normally protected by statute from liability as a member of an LLC or shareholder of a corporation, is found liable due to the owner’s illegal actions. In Ohio, courts refer to three elements that must be met to “pierce the veil” of an entity’s protection, as reasoned in a 1993 Ohio Supreme Court decision in Belvedere Condominium Unit Owners’ Assn. v. R.E.… Continue readingRead More »