Mark J. Kohler explains how forming a corporation or LLC shields owners from company liabilities, a protection called the corporate veil. The choice depends on your business's risk level: an eBay seller needs less protection than a bungee-jumping operation. The veil has limits, covered in other videos.
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Hi Mark Kohler here with another two minute tax and legal tip. Let's talk about what this corporate veil is all about. Many of you as a small business owners have heard of this corporate veil protection and I don't want my veil getting pierced and I need that corporation so I'm protected. Well, this corporate veil is very, very valuable and irrespective of any tax reason in your small business, you may need that corporate protection. Now this corporate veil has evolved over 100 plus years through statutes and common law and court cases giving us direction on what the limits are of this corporate veil. But the beauty of it is, is that in your business, once incorporated or setting up an LLC or an LP or triple lp, any of those types of entities, you as the owner and operator are protected from the operations of the company. Now there's limits and I talk about that in another video. But but the important thing is to determine when the corporate veil is right for you. Again, if some of you are in a small business inside your basement selling things on ebay in the middle of the night, then maybe corporate veil is not as critical. For some of you that might have a bungee jumping business and you're throwing people off buildings or bridges, corporate veil might be a good idea. So you want to look at your type of business and decide when does that corporate veil make sense. And again, it's irrespective of almost the tax issue. So think about the corporate veil and I'll give you more tips on how to protect it in future videos. If you thought that information was amazing and helpful, I have so much more to share with you. Please look at the links below and head to my website markjkohler.com you can subscribe to my weekly newsletter. Check out my weekly radio show. I have my online videos for tax and legal strategies that will save you thousands ways to learn QuickBooks with my fun videos online and also if you enjoyed it, please leave a comment and give it a like and follow me on YouTube. I promise that these videos will change your life. Thanks so much.
