What is meant by the term "veil of incorporation?"

Answer by  Cecilia (2828)

The general intent behind 'veil of incorporation' is to hide or screen off your personal assets from the liabities of your business. For most purposes a corporation is considered a legal entity. If the liability for an accident or damage can be focused against the corporation instead of the owners it's likely the owners will get to keep their assets.

Answer by  butterfly719 (9)

The term "veil of incorporation" is used to describe the separation of a corporation from its shareholders and directors. Since the corporation stands as a separate entity, those persons are legally protected from liability for corporate debts. Unless the corporate veil is lifted by a court, those shareholders cannot lose more than they have dedicated to the corporation.

Answer by  DrFeelGood (259)

When someone refers to the "veil of incorporation" they are making a play on words involving the sleight of hands maneuvers such as clever marketing, targeted marketing, and any type of otherwise "Shady" marketing technique. Whoever told you this has little respect for either large scale companies or just marketing in general.

Answer by  noosh (673)

Incorporation allows and individual to do business while minimizing risk personally to them. The "veil" is what allows protection to the individual. In order for the protection to be effective there are rules that need to be followed so that personal assets are not jeopardized while in business. It'simportant to know the right way to conduct business for this purpose.