Comment by alexpotato
7 hours ago
In legal terms there is something called "piercing the corporate veil".
Classic example:
- guy owns a cab company
- he puts each cab in it's own LLC
- the idea is that if a cab hurts or kills someone, the liability stops at the cab and doesn't come back to him
Judges will say "that is not acceptable" and rule that the liability does indeed extend outside the single car LLC and should apply to the owner.
That process is almost never applied to C corps except for certain financial fraud, while partnerships (like LLCs) are usually seen as proxies for their members, as in your example.