California’s Alter Ego Liability—How it Works and How to Retain Your Limited Liability Protections

California's 'alter ego' liability exception can make business owners personally liable for their company's debts. Courts use case-specific factors to apply this doctrine, including a lack of separation between personal and business assets, insufficient business capitalization, and failure to adhere to corporate formalities. Remember, limited liability protections are not absolute, so seek legal counsel when necessary to ensure you're respecting the corporate form.

In December of 2020, the State of California announced the creation of a $500 million Small Business COVID-19 Relief Grant Program to provide grants up