Courts will ignore the corporate structure and make the shareholder-owners personally liable when the corporate structure is used, abused for personal benefit or when the corporate form is distinguishable, indistinguishable from the controlling shareholder.
In this situation, it appears, does not appear that Laker Express was tricked into dealing with the corporation instead of the individual. Given the life of the corporation, it appears, does not appear that the corporation was set up to always be insolvent, or was undercapitalized.
It also appears does not appear that the corporation was formed to evade a legal obligation. There is, is no evidence that the corporate formalities were not followed and there Selectisis noItem 2 evidence that Tony Smith commingled funds.
Given these facts, a court should,should not pierce the veil of Smith Services, Inc. A business of this type is, is not considered a separate legal entity from its owners. Tony Smith was,was not a shareholder in Smith Services, Inc. Smith Services Inc was a limited liable company. A business of this type is not considered a separate legal entity from its owners.
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