Does an LLC or corporation fully protect my personal assets?

Mostly, but not completely. The entity shields you from ordinary business debts, but you can still be reached through a personal guarantee, your own wrongful act, criminal conduct, or — in narrow cases — by piercing the veil.

How hard is it to pierce the corporate veil in Texas for a contract claim?

Very. Under TBOC § 21.223, a creditor must prove the owner used the company to commit actual fraud primarily for the owner’s direct personal benefit. Failing to keep up formalities is not enough on its own.

What is a charging order?

The remedy a personal creditor is generally limited to when pursuing your ownership interest. It redirects distributions to the creditor but does not transfer ownership or control of the business.

Can keeping poor records cause me to lose the shield?

For contract claims, formalities-failure alone is not a basis for liability. For tort claims, commingling funds and ignoring the entity’s separateness can support an alter-ego theory, so good records still matter. The strength of your liability shield depends on choosing the right entity and respecting its separateness — details that are easy to get wrong without guidance. Reidel Law Firm helps Texas owners structure and maintain their businesses to keep that protection intact, on a flat fee. Talk to a Texas business attorney about your liability exposure.

Personal Liability for Your Texas Business

A Texas LLC or corporation shields your personal assets from your business’s debts — but that shield is not absolute, and a handful of mistakes can let a creditor reach you personally. Texas has some of the strongest limited-liability protections in the country, anchored in the Texas Business Organizations Code (TBOC). Understanding exactly where the protection holds, and where it ends, is the difference between a calculated risk and an unpleasant surprise.