Piercing the corporate veil

[Belinda R.]

I just formed an LLC and opened a business checking account. When flipping houses I use my Home Depot credit card to make purchases for supplies, appliances etc and pay off once I sell. My question is since this Home Depot cc is in my personal name, could making payments from my business checking possibly pierce the corporate veil. I'm going to try to add my business to the card if I can but with it being a newly established LLC I'm afraid my credit limit will significantly decrease. Thoughts?

[John Chapman]

I am an attorney, and I've looked at veil piercing in a number of states. Generally, piercing the veil requires something akin to using the entity as an alter ego and is a pretty high standard to meet. Commingling funds, disregarding all corporate formalities, using the entity to commit fraud, etc. Every state has different factors. I haven't looked at your state's law, but I would be surprised (probably even floored) if simply having your LLC reimburse you for supplies would in any way constitute a basis for piercing the veil.