![]() The defendant was the sole owner and director of an Iowa corporation that had existed for nearly 20 years. The case provides a good reminder to business owners that they must truly follow statutory requirements for maintaining a true business or they will not receive the protections of those laws. In a recent case from the Iowa Court of Appeals, a plaintiff was able to “pierce the corporate veil” in an attempt to collect on a $410,067 breach of contract judgment. This liability shield, however, is not without exception. Incorporating or organizing as an LLC can limit owners’ personal liability to the extent of their investments. ![]() It is generally advisable for business owners to form a separate legal entity to limit personal liability stemming from business contracts or torts.
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