Comment by gamblor956

LLCs are the limited liability form also most easily subject to veil-piercing (meaning, the courts ignore the limited liability shield to go after the assets of the owners) as most LLCs fail to properly maintain all the technical minutae necessary to actually keep the liability shield in place.

Insufficient capitalization is the #1 reason for piercing the veil (and also works well against corporations). This involves not putting enough investment into a company to pay the foreseeable debts it would incur from its activities. This means: if your LLC incurs debts knowing it lacks the ability to pay them off, the courts can pierce the LLC and go after you.