If you own a small business, you likely formed a Limited Liability Company (LLC) to protect your personal assets. But that protection isn’t automatic.
Under certain circumstances, courts can “pierce the corporate veil,” meaning they disregard the LLC and hold the owner personally liable for business debts, lawsuits, or obligations.
In this episode of Small Business Legal Tips, Massachusetts business attorney Mark Bross
explains how LLC asset protection works—and the common mistakes that can cause it to fail.
He also walks through the 12-factor test used by Massachusetts courts to determine when an LLC owner can be held personally responsible.
In this video, You’ll Learn:
What “piercing the corporate veil” means – When courts can ignore your LLC structure and hold you personally liable.
The 12 factors Massachusetts courts use – The legal framework used to decide whether an LLC’s liability protection still applies.
Common mistakes that weaken LLC protection – Including commingling funds, failing to follow corporate formalities, or not maintaining proper records.
What assets creditors can pursue – How personal bank accounts, vehicles, or real estate can become exposed if the LLC shield breaks.
A 6-step LLC self-audit checklist – Practical steps every business owner can take to strengthen their liability protection
Whether you’re launching a startup, running a consulting firm, or managing a growing small business, understanding how to maintain your LLC’s legal protections is critical.
Following the right procedures—such as keeping separate bank accounts, maintaining required records, and respecting the LLC as a separate entity—can make the difference between protected assets and personal liability.
If you own a Massachusetts LLC and want to ensure your business is properly structured and compliant, professional guidance can help prevent costly mistakes.
f you’re in Massachusetts and need help reviewing your LLC structure or ensuring your business is properly protected, contact Bross Law, LLC. to book a consultation.
