Although limited liability companies can be an attractive alternative to forming traditional corporations, whether or not an LLC is any more or less vulnerable to having its veil pierced in Pennsylvania remains a gray area in the law, court observers said.

Since the state General Assembly passed 15 Pa. CSA 8904 in 1994, courts have largely been applying the doctrine of piercing the corporate veil to LLCs. But, since LLCs are much more flexible than corporations and have fewer internal rules that must be followed, courts are now having to consider exactly how the corporate test should be applied to these more flexible entities.

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