You're listening to the Sub 2 Breakhouse with Pace More Beyond the Holesale Hotline podcast.

All right, Robert.

So let's jump into the 10 things that you see people do incorrect in business.

Let's jump into that and give people what they came here for.

Sounds good. I structured this with five today because I know we were supposed to do a two-part series.

Perfect. I love it. All right. Sounds good. First one, I'm sure you guys have all heard of this concept of, you know, piercing the corporate veil.

So like I said, I tried to structure this to be beneficial for you guys as real estate investors.

There's really two ways that are two tests that courts will try to go after you for for piercing the corporate veil.

It's called either the alter ego test or instrumentality test just depending on what state you're in.

That test basically just says, you know, is this business and the person so intertwined that it's essentially one in the same, right? And the second

test is the undercapitalization test. And that's asking whether the corporation was adequately

capitalized at the time of formation based on any foreseeable

liabilities. So for that test, I mean, there's not a clear dollar amount that you need in a bank

account to satisfy this. Obviously, having insurance protection helps. You really have to take a look

at, you know, what type of business am I in? If I'm in a dog grooming business, I probably don't have a ton of liabilities. If I'm running some type of a chemical manufacturer, then I probably have higher, higher potential for liability there. Okay. So what you're saying is we don't, we don't want the people to have the ability to pierce the corporate veil. Does anybody not know what piercing the corporate veil means because I'll dumb it down for you.

Pay attention. This is a really good one. This is going to come up so many times as a business owner.

Take notice and write this down guys.

Piercing the corporate veil means that when I start an LLC, right, or a company in general,

what I assume I've done is I've created a protection or a layer between me

and the liabilities of that business, right? Does everybody, do you understand that? What happens is,

let's say that I start using the LLC to buy Disney tickets from my family and I take my family

on vacation with the money from my company. Does that tell you

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