How to ensure the "corporate veil" is not pierced in a s-llc?
Hey everyone,
I'm still undecided about whether or not to do an LLC for a single commercial unit I own and rent out (no loan). A family friend is an attorney (real estate isn't his primary, but he dabbles in it) recommends that I form an LLC. He says in Virginia an single member LLC is treated the same as a multi-member LLC, but I'm reading about people "piercing the corporate veil." Having an LLC would definitely increase costs... (not sure how much exactly, but I know that things like insurance will be more expensive).
I was reading from some posts here that the "corporate veil can be pierced" if an LLC is not treated as a separate entity, such as having an operating agreement, holding meetings, ect. However, if you're a single member LLC you wouldn't need an operating agreement and meetings right? So, what can you do as a single member in a LLC to ensure that it's treated as a separate entity.
Eitherway, I would get umbrella insurance with as much insurance as possible, so I'm not sure if the headache is worth it. The only main reason I think it would be to have my name not connected easily to the LLC, so less headaches from tenants.