Piercing the Corporate Veil (Alter Ego) in Florida
FL courts pierce the veil when an entity is a "mere instrumentality" or alter ego: commingled funds, no formalities, undercapitalization, or fraud. Totality of circumstances; no single factor determinative. Protect: separate accounts, observe formalities, adequate capital, separate identity, accurate records, and limit personal guarantees.
When Courts Pierce
- Alter ego: entity = owner’s personal tool
- Used to perpetrate fraud/injustice
- Corporate form produces unjust result
Factors
- Commingling funds, no formalities
- Undercapitalization, domination
- Fraud or improper purpose
Protection
- Separate accounts, observe formalities
- Adequate capital and insurance
- Complete records, limit guarantees
Related Terms
- LLC — Limited liability
Barnes Walker Business Law
Barnes Walker’s attorneys advise on entity protection in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC