Forbes has published an article, “Florida Court Sheds Light On Piercing The Corporate Veil,” which discusses the necessary components needed to penetrate the veil a LLC provides an individual. The article begins as follows:
In the 2021 3rd District Court of Appeals case of Segal v. Forastero, Inc., an investor who bought and sold real estate used an LLC he had to enter into a purchase agreement and then walked away from the deal, claiming that he had no personal liability because it was the LLC and not him who signed the agreement.
His LLC had bought and sold real estate in the past, and had a bank account, and had filed tax returns, but had no bank account or other assets or activities at the time that it entered into the Acquisition Agreement, other than right to purchase under the Acquisition Agreement itself and whatever initial deposit was made, if any. He did not guarantee the agreement.
At the time that the Acquisition Agreement was entered into, the seller was told that the owner of the company had significant assets, and seemed to have believed that these assets were under the company or would be contributed to the company.
Click here to see the full article: “Florida Court Sheds Light On Piercing The Corporate Veil.”
Posted by Bennett Mansour, Associate Editor, Wealth Strategies Journal.