3 ms·

> Running a corporation or LLC without sufficient capitalization can be grounds for piercing the liability shield in a lawsuit. Which is exactly how it should

> Running a corporation or LLC without sufficient capitalization can be grounds for piercing the liability shield in a lawsuit. Which is exactly how it should be handled, IMO: Deal with the abuse situations directly. Forcing new companies to capitalize with an arbitrary amount of money at time of founding penalizes small players who want to start a company. It's also not a hurdle at all for large players who want to commit large frauds.

dyauspitr 4mo ago
Is the gmbh pierce proof? Because then I like the situation where if you start with $25,000 under no circumstance can they get past the liability shield.
- Sebb767 4mo ago
  Usually, yes. There are a few exceptions, such as serious misconduct, tax fraud and not declaring insolvency when necessary. But as long as you're following the law, you're fine.
  - zchrykng 4mo ago
    So, the exactly same as the USA then.
kazinator 4mo ago
> penalizes small players who want to start a company That's a barrier to entry; and who likes to perpetrate those? Why big, established companies who lobby the government.
- therealdrag0 4mo ago
  Ya we don’t have those in America, wait—