Understanding the Corporate Veil: Strategies to Maintain and Pierce Limited Liability (2025 Edition)

Shahrokh Sheik | Weinberg Gonser, LLP

Shahrokh Sheik is a business and intellectual property attorney serving as outside general counsel and litigation counsel for clients ranging from international corporations to start-ups and individuals in a variety of industries including entertainment, hospitality, cannabis, finance, e-commerce, advertising and more.

Shahrokh is dedicated to providing value to his clients and maintaining long term relationships. As such, he strives to identify their goals, objectives and constraints in order to facilitate business transactions and resolve disputes efficiently and effectively.

Prior to joining Weinberg Gonser, Shahrokh founded the business and intellectual property firm Kramer Holcomb Sheik LLP in 2012, and prior to that, he served as Counsel at Independent Film & Television Alliance (IFTA)- producer of the American Film Market (AFM). During law school, Shahrokh served as the President of Southwestern’s student government as well as the Associate Editor of the University’s Law Review. While obtaining his undergraduate degree from California State University, Long Beach, he served as the Vice President of the student government, President of the Sigma Phi Epsilon fraternity and Founder/President of the Law Society.

Lee Weinberg | Weinberg Gonser, LLP

Clients’ goals and needs are never “cookie-cutter”.

Lee Weinberg has helped a wide range of clients meet their personal, financial and business goals, including “Business Divorces”, first-time liquidity events, and domestic and international financings and transactions.

Clients know they can count on Lee for individually-tailored options, thoughtful and practical guidance, and creative solutions (as well as access to his broad network) as they navigate all manner of issues and situations.

Michael Alfera | Weinberg Gonser, LLP

As an Associate Attorney, Michael excels in devising winning arguments and case strategies for clients involved in business and commercial disputes on both sides of the ‘v.‘ Prior to working at Weinber Gonser, he worked as a judicial law clerk, first for the Los Angeles Superior Court and then for the Honorable Otis D. Wright II, District Judge in the District Court for the Central District of California. Working in the supporting role for multiple judges fostered Michael’s ability to analyze cases from a judicial standpoint, a perspective that is instrumental in obtaining positive results for the Firm’s clients.

Michael ranked #1 in his cohort at Southwestern Law School, and he was a member of the championship team at the 2018 Wagner Labor and Employment Law national moot court competition in New York City. Michael’s academic excellence and practical experience have forged a unique skill set that empowers him to navigate complex litigation challenges with confidence. His strategic mindset and comprehensive understanding of the state and federal court systems make him a formidable advocate for the interests of the Firm’s clients.

Michael is a classically trained pianist, composer, and conductor. He is the former accompanist for the Gay Men’s Chorus of Los Angeles and the founder of the L.A. Choral Lab, a local performing arts nonprofit dedicated to promoting the modern choral art form.

I. Piercing the LLC Veil | 1:00pm – 1:20pm

• Corporate veil piercing and its application to LLCs
• Piercing the veil of corporations vs. LLCs
• Recent trends by the Courts on Veil Piercing litigation

II. Common Factors Leading to Veil Piercing | 1:20pm – 1:40pm

• The alter ego doctrine: What it means and how courts apply it
• Commingling personal and business assets
• Undercapitalization and its impact on veil-piercing risks
• Failure to observe corporate formalities

III. Piercing the Veil of Single Member LLCs (SMLLCs) | 1:40pm – 2:00pm

• Why SMLLCs face higher risks of veil-piercing claims
• Strategies for maintaining separation between the member and the LLC
• Proper documentation, contracts, and records that protect against veil piercing
• Addressing and mitigating risk through operating agreement provisions

Break | 2:00pm – 2:10pm

IV. Veil Piercing in Multi-Member LLCs and Corporations: Risks and Complexities | 2:10pm – 2:30pm

• Understanding how courts treat multi-member LLCs and corporations differently
• Piercing the veil in closely held and family-owned LLCs
• Liability risks when officers or managers fail to adhere to fiduciary duties
• Using capital contributions and distributions to strengthen corporate integrity

V. Litigation Strategies: Defending Against Veil-Piercing Claims | 2:30pm – 2:50pm

• How to challenge veil-piercing arguments during litigation
• Identifying weaknesses in the plaintiff’s veil-piercing case
• Using expert witnesses to defend the separation between the entity and its owners
• Settlement considerations and avoiding adverse precedents
• Practical considerations for advising clients before, during, and after litigation

VI. Best Practices for Preventing Veil Piercing Claims | 2:50pm – 3:10pm

• How to structure operations to minimize the risk of veil piercing
• Drafting governing documents that facilitate and create limited liability protections
• Implementing internal policies for financial separation and proper capitalization
• Risk management strategies, including insurance considerations and maintaining records of business decisions