> Running a corporation or LLC without sufficient capitalization can be grounds for piercing the liability shield in a lawsuit.

Which is exactly how it should be handled, IMO: Deal with the abuse situations directly.

Forcing new companies to capitalize with an arbitrary amount of money at time of founding penalizes small players who want to start a company. It's also not a hurdle at all for large players who want to commit large frauds.

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dyauspitr 2 hours ago | parent [-]

Is the gmbh pierce proof? Because then I like the situation where if you start with $25,000 under no circumstance can they get past the liability shield.

	▲	Sebb767 2 hours ago \| parent [-]
		Usually, yes. There are a few exceptions, such as serious misconduct, tax fraud and not declaring insolvency when necessary. But as long as you're following the law, you're fine.