Undercapitalization & Piercing the Corporate Veil - All Up In Yo' Business

But Ayden, what if the operating company is owned by a (parent) holding company? As per the holding structure, the funds that are generated through the OC and flows to the HOLDCO, and are stored there. Does that still mean your OC is undercapitalized? What if the Parent funds the OC and receives all the OC's revenue? I'm curious to know.

Aiden, I understand undercapitalization as a concept, but not so much as a practice. For example, if I left only enough money in my business account to cover monthly expenses and transferred the rest to my personal account, would that be considered an undercapitalized LLC? If so, how much more should I leave in the business account? 10%, 20%, 30% over monthly expenses?

This reminds me of
"MAX HEADROOM" SUCH A beautiful girl. Thanks for posting the info!

Aiden, I'm civil defense attorney in Alabama (Roll Tide) and just wanted to let you know that I've been watching a ton of your videos and really enjoying same! (My wife is starting her own LLC so I wanted to do some quick research) Thanks for posting such great content! I hope you're crushing it out there in CO!

What is considered adequate capitalization? - is there a percentage to go off of?

wrr

excellent video. I sent you a question on a prior video but I never heard back from you. I did, however, watched a video that answered that question for me. Your videos are awesome and educational. Thanks

say your wanting to start a woodworking business from your home shop. you have all of the tools and equipment and less than 1k in funds to get going. this is going to be your sole source of lively hood after being laid off. How do you avoid being undercapitalized ? to you have to wait until you have more funds in the bank before you can incorporate? if your operating at a loss are you then considered undercapitalized?

Hi Aiden! Is there a specific amount of funds that denote adequate capitalization? Specifically for small businesses with very little overhead and operating expenses? I'm thinking of service-based businesses that require very little investment to get up and running.

Hi Aiden
Thank you for the good information. I have a quick question: could I pierce the corporate veil in small claims court? or should I go to other type of court?
Thanks

Good Info! Glad to see your back!