
Corporate formalities
Although TBOC §21.223(a)(3) expressly eliminates the “failure to follow corporate formalities” commonly pointed to in historical veil piercing law, it is still best practice to follow corporate formalities to avoid failure to do so being pointed to as part of an alleged actual fraud. Further, if multiple entities are oned, it is best practice to avoid undocumented transfers between the entities, sharing employees and the same accounting system, one entity paying the wages of the other entity, and unclear allocation of profit and loss between the entities.Veil piercing based on the Texas Tax Code
Texas Tax Code § 171.255 establishes that directors, officers, and managers of a filing entity have personal liability for the debts of the entity when the filing entity privileges are forfeited for failing to timely file a report or pay a tax or penalty. The time period of personal liability exposure extends from the date the report, tax, or penalty becomes due until the entity privileges are revived. [disclaimer] Although I am an attorney, the legal information in this blog entry is not intended to be a substitute for seeking personalized legal advice from an attorney licensed to practice in your jurisdiction. Further, I do not intend to create an attorney-client relationship with any reader. This Blog/Website is made available by Waldron & Schneider for educational purposes only as well as to provide general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Waldron & Schneider. The Blog/Website should not be used as a substitute for competent legal advice from a licensed professional attorney in your jurisdiction.Recent Posts
Categories
Partner Vanessa J. Maduzia was interviewed by Sara Blumenfeld with Networking Done Differently regarding her areas of practice. ... See MoreSee Less

www.ws-law.com
Vanessa J. Solis-Maduzia’s Interview with Sara Blumenfeld with Networking Done Differently Partner Vanessa J. Solis-Maduzia was recently interviewed by Sara Blumenfeld with Networking Done Different...- Likes: 8
- Shares: 4
- Comments: 0
0 CommentsComment on Facebook
Collin Bullard writes about a recent court decision regarding a new attempt to pierce the corporate veil in his blog.
... See MoreSee Less

A New Attempt to Pierce the Corporate Veil
www.ws-law.com
Piercing the corporate veil means to disregard the limited liability protection of an entity for its owners and attack them directly.0 CommentsComment on Facebook
Congratulations to Partner Richard Simmons and his dance partner Eva de Cardenas for winning the Dancing with the Stars - Bay Area Mirror Ball. ... See MoreSee Less


3 CommentsComment on Facebook
Congratulations!
Congratulations!
Fabulous!! Congratulations to two amazing people who serve our community well🥰
Collin Bullard writes about a recent court decision that choose where a person can file their lawsuit in his blog.
... See MoreSee Less

Recent Court Decisions: Choosing Where You Litigate
www.ws-law.com
A forum selection clause allows the parties to a contract to decide where they will go to court if there is someday a lawsuit relating to the contract.0 CommentsComment on Facebook
Collin Bullard writes about the Corporate Transparency Act and what small businesses need to be aware of.
... See MoreSee Less

Small Businesses Beware: The Corporate Transparency Act
www.ws-law.com
The Corporate Transparency Act begins requiring most entities to file registration documents with the Financial Crimes Enforcement Network.0 CommentsComment on Facebook