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This is Fred Ball for Zions Bank, speaking on business.
True or false: once an entrepreneur incorporates a business, he or she no longer has any personal liability. Well, the answer may surprise you. It's false.
I recently learned that a disturbing trend is emerging where business owners are being held personally liable for their company's actions. This is known in legal circles as "piercing the corporate veil." There are over 80 different reasons that business owners can be held personally liable for their business's actions or visa versa.
According to a recent Cornell Law Review article, plaintiffs are successfully piercing corporate veils at a rate of 67 percent when they can prove non-compliance to corporate rules. When it can be proven that the business is simply the "alter ego" of the business owner, corporate veils are successfully pierced 96 percent of the time.
Well, Bulletproof Veil, a Utah-based company, recently introduced a service that helps business owners ensure a strong corporate veil. The service conducts a complete administrative review of a business's current status, identifies weaknesses and offers solutions, organizes and maintains all of the administrative issues and records, as well as provides on-going compliance and education. Bulletproof Veil has incorporated the knowledge gained from researching over 2,200 veil-piercing cases into an affordable, easy-to-use service.
Bulletproof Veil makes its service available through Channel Partners that consist primarily of CPA firms, laws firms, financial advisors and professional employer organizations. The Channel Partners are able to offer the service to their clients at greatly discounted rates.
To learn more about Bulletproof Veil, you can visit the company's Web site at www.bulletproofveil.com. The Web site includes a 10-question vulnerability test that can quickly help business owners determine if their personal assets are at risk.
For Zions Bank, I'm Fred Ball. I'm speaking on business.