Glossary • Updated 2026
By Srikanta M.Reviewed against FTB / SOS sources: September 2026Methodology

Piercing the Corporate Veil

Courts ignoring the entity to reach owners, usually for commingling or undercapitalization.

In detail

Prevented by separate accounts, documented meetings, adequate capital, and filed reports.

Single-member entities face more veil challenges: formalities matter more, not less.

Administrative suspension weakens the shield exactly when you need it.

Where it matters

More definitions

Sources

  • Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries