Can I sue individuals from a corporation instead of the company?
What some call the "corporate veil", others call a joke. Any good lawyer knows that people and companies are two different things, and you can only sue the latter. The fact that many companies are owned by other companies is irrelevant. The fact that employees do the actual work is irrelevant. The fact that there's a single person who makes all the decisions is irrelevant.
If you want to sue an individual from a corporation, you must sue the company itself. If you want to sue a company, you can choose to sue one of its specific divisions or departments (for example, suing Walmart's real estate department if you're trying to recover money from them), but it's not possible to pick out a random individual from inside Walmart as your target for litigation.
What is a Corporate Veil?
The term "corporate veil" refers to the legal separation of a parent company from its subsidiaries. It's an intermediate step between an incorporated business and a sole proprietorship, which leaves the parent company liable for the debts of the subsidiary. A limited liability company (LLC) is formed when one or more persons create a corporation that is not responsible for the debts or liabilities of its members. If you are considering incorporating your business, this is one of those things that you do need to think about.
What to consider when forming an LLC company?
There are a lot of things to consider when forming an LLC company, including the state in which you form your LLC company, the potential tax burdens you will be faced with, and how much money you need to start your business.
States vary in their taxes for LLC companies. If you choose to form in a state that does not impose an income tax, such as Delaware or Nevada, you can save yourself some money by not paying state income taxes. You may also save a bit on sales taxes, depending on the state. However, many states have annual fees for maintaining your LLC status. For example, California charges $800 per year to maintain its LLC status, and Texas charges $300 per year.
If you have any questions, you can get a free consultation with Ascent Law LLC:
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
