Proving Alter Ego Theory

The Law Offices of Omar Zambrano know that it’s not difficult to prove that a small business corporation is just an alter ego of the business owner. The amount of effort depends on the separation kept between a business owner and his or her corporation. The plaintiff’s attorneys know precisely what to look for to prove that no distinction exists between you and your corporation. Some of the valid reasons they seek are included in the following:

Improper or incomplete formation of a corporate entity
Inadequate capitalization
Failure to maintain corporate records
Failure to submit required documents to the secretary of state annually
Commingling corporate and personal funds

Once one of the above is exposed, the protective corporate shield may be stripped away. Then, your personal assets are up for vulnerable to be taken away.

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