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Second that this thing is unreadable now. I can't figure out what is going on other than some other people on HN know more about this situation than is in this
by kls 16y ago
Second that this thing is unreadable now. I can't figure out what is going on other than some other people on HN know more about this situation than is in this thread.
- tptacek 16y agoThere's an article on Google that lays out a bunch of tests that courts will use to determine that your corporation is a sham (for instance, if you mix your finances with the company's finances, perhaps by having the company pay your rent or buy your groceries). If you don't have a bona fide company, but rather a fraudulent scheme designed to shield you from personal liability, then the creditors of the company can pursue the shareholders of the company; this is an instance of "piercing the veil" called "alter ego liability". It's also not relevant to your Internet startup owing Rackspace hosting charges.
- dhimes 16y agoYour comments on this submission have been excellent. Thank you. Without starting everything up again, I'll just mention that the ability to pierce the veil depends some on which state you are set up in (pharma investors nearly insist on Deleware, FWIW).