
What Is Reverse Veil Piercing and How Should You Protect Against It?
Most business owners have heard the phrase "piercing the corporate veil", whereby creditors who win a legal judgment against the corporation or LLC target the personal assets of a shareholder or LLC member to satisfy the debt. But few have heard of reverse veil piercing, which is an exception to the legal separateness between corporate or LLC entities and their owners, but in the opposite direction. When the corporate veil is pierced—in reverse—business assets can be used to pay for obligations incurred by the owner. Read this blog to learn more about review veil piercing and the state courts that have ruled in favor of it.