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 in cases of unfair outcomes due to bad faith actions. 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.