Importance of the Corporate Veil—Nellie Akalp, CEO,

Do you know what piercing the corporate veil means? I’m sure you have heard this term, but what does it mean? How do you create the corporate veil and how do you protect it?

Our guest today, Nellie Akalp, is a business compliance expert with her company CorpNet and she will be sharing her knowledge on the corporate veil subject. She is also a serial entrepreneur and has built several companies.  I am fortunate to have been a long-time customer of CorpNet and I love the work they do. 

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Nellie Akalp is a passionate entrepreneur, business expert, and mother of four. She is the CEO of, a trusted resource and service provider for business incorporation, LLC filings, and corporate compliance services in all 50 states. Nellie and her team recently launched a partner program for accountants, lawyers, and business professionals to help them streamline the business incorporation and compliance process for their clients.


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Tom DuFore, Big Sky Franchise Team (00:00):

You’ve worked hard to build your business and now it’s time to grow. Welcome to the Multiply Your Success podcast. I’m your host, Tom DuFore, CEO Big Sky Franchise Team, and a serial entrepreneur. And the purpose of our podcast is to give you a weekly dose of inspiration and education to help you multiply your success.

Tom DuFore, Big Sky Franchise Team (00:21):

And as we open the show today the question is, do you know what piercing the corporate veil means? I’m sure you’ve heard this term and you’re familiar with it, but do you know what it means really? And how do you create the corporate veil? Because you hear about piercing the corporate veil. So yeah, it means you have to create it. And then once you created, how do you protect it? And this was a question I was asking and why wanted to have our guests, Nellie Akalp on our show today. She’s a business compliance expert with her company CorpNet, and she’ll be sharing her knowledge and expertise and talking about the corporate veil and her awesome, awesome background. I’ve been fortunate to have been a customer of hers for, goodness, 10 years or more at this point. I love her company or service, they’ve been great. And so I thought she’d be a perfect guest to have come on the episode or on the podcast and share about the corporate veil. So let’s get right into my interview with Nellie Akalp.

Nellie Akalp, CorpNet (01:21):

My name is Nellie Akalp. I am the co-founder and CEO of Our company, CorpNet provides the most comprehensive cost-effective services when it comes to starting a business, incorporation, LLC filings, corporate compliance, and sales and payroll tax registration filings in all 50 states.

Tom DuFore, Big Sky Franchise Team (01:47):

Yeah. Well, and I’ve been a customer of yours coming up on, I think about 10 years now. I love your service and what you do. It’s really phenomenal. So I’ve been grateful to have had the opportunity just to be a customer. So I am a glowing testimony for you.

Nellie Akalp, CorpNet (02:02):

Thank you.

Tom DuFore, Big Sky Franchise Team (02:02):


Nellie Akalp, CorpNet (02:03):

And it’s a pleasure and an honor to me that I get to not only be on your podcast but be on a podcast with a client of ours who has firsthand knowledge and can share their experience of the depth of services we provide and your experience while using CorpNet. So I think it’s a win-win situation here.

Tom DuFore, Big Sky Franchise Team (02:26):

Yeah. I do too. I do too. Well, and talk to us about CorpNet. How did you get into this business of online business filings and registrations and all the different things you’re doing here?

Nellie Akalp, CorpNet (02:40):

So my husband and I met in college and we had similar passions of going to law school. And unfortunately, although we didn’t get into the same law school, we ended up going to law school, graduating. And in the last year of Phil’s law school years, he was attending a corporations class and the whole topic of starting a business online and incorporating online was a big, hot topic and he really wasn’t convinced that getting out of law school, the entry-level of a lawyer was going to suffice the type of lifestyle that he envisioned for himself, for us, and I didn’t either and I was at that point going to law school part-time while trying to make ends meet, holding a $15 an hour job. So he came home one day back in 1997 and he’s like, “Hey, let’s take $100 and invest on a domain name.”

Nellie Akalp, CorpNet (03:54):

And we started our first company back in 1997 in this industry. And back then it was at the birth of the internet. So placing a website online was really easy to get rankings on the search engines. And we didn’t even have a merchant services account or anything. People would literally call us and give us their credit cards over our answering machine back then. So fast forward, we started that business in our two bedroom apartment, grew it to where it was nearly doing $1 million in gross sales revenues. And in 2005, we were approached by a publicly traded company. And what really appeared as an agenda of wanting to partner with us, the conversations soon turned to one of acquisition and wanting to acquire us. And hence we were acquired in 2005 for a large sum of cash.

Nellie Akalp, CorpNet (05:02):

And the company is privately owned, so it wasn’t really anyone else but Phil and I, and after the acquisition, the company soon for me, it really, really lost its entrepreneurial spirit. And it was really corporate for me and for Phil even more. So he immediately bowed out and I was more entangled with our company. So I had to take more of a staggered approach to bowing out of the company but we both ultimately bowed out and the company was run by Intuit, which acquired us and they ran the company. And during that time we were also under a non-compete with them. So for me it was a great time to focus on myself, on my husband, on our then growing children but there was always something inside of me, that fire, that burning desire that really, really I wasn’t convinced that this was it for me. And I get goosebumps literally this every single time. I felt like there was a bigger calling for me and I wasn’t convinced like, okay, this is the end of my entrepreneurial journey.

Nellie Akalp, CorpNet (06:30):

So I was literally crawling out of my skin, at one point I was selling t-shirts out of the back of my car and entrepreneurship in my opinion, you’re either born with it or you’re not and for me, it’s something that’s really a born. I’ve been born an entrepreneur, I’ve been born a survivor. I’ve been born a leader. I’m not one to be in the back room. I’m more the one who takes the bull by the horn and runs with it. And after our non-compete ran, I realized that I was too young. I was too motivated and I was frankly too bored to take on an early retirement. So CorpNet was born. It was the only seven letter name that was available on the internet as a domain name.

Nellie Akalp, CorpNet (07:27):

And in 2009, we launched CorpNet. And in fact it was me, Amanda and Phil, who started the company. We started it again in our one bedroom room off the garage of my current residence. And for me seeing where we were and where we are today, it’s really a confirmation to how much you’re willing to put in to see the results of your success. And we had some really hard times during these past, I’ve lost count, we started in 2009, today we’re in 2021, I don’t know, 12, 13. I don’t know how many years we’ve been in business. I’ve lost count but for me, where we are today with CorpNet it’s a true testament of the hard work, the tenacity, and our desire and our fierce determination to not fail and failure is not an option.

Nellie Akalp, CorpNet (08:44):

And that’s really what I live by every day. It’s like if one door shuts in front of you, go knock on another door, but failure is not an option. And hence today, within the last year, we went from a 10 person company to a 50 person company. And we are in a very, very, very, I would say a great place when it comes to really seeing the fruits of our hard work as a company. And I am very, very proud to be called the CEO of CorpNet because it’s not about me. And it’s not about my hard work. It’s the sum of all of its parts. And I’m so proud for being part of a team that’s so hardworking and that’s so dedicated and is willing to go to any length to truly, truly prove to themselves that success is possible and is inevitable when your focus is, failure is not an option and you have a clear path in front of you and where you want to go.

Tom DuFore, Big Sky Franchise Team (10:19):

Yeah. What a story? Thank you for sharing that. I was not aware of that whole full background. What an incredible journey you’ve been through to get to this point.

Nellie Akalp, CorpNet (10:28):

Thank you. Thank you so much. Yeah. A lot of people don’t know about the journey and we have a good story, I would say, and there’s a lot of things in the interest of time that obviously I have left out but the story is one of success but success comes with a plethora of failures and I can tell you, I’m still not done failing, and I’m sure I’m going to have a lot more failures but the message that I would like to hit home with anybody listening is that it’s how you rise from your failures and it’s how you look at yourself as a human coming out of those failures and what we do with those failures. You can either view a failure as a failure, or you can view a failure as an opportunity to rise and grow from it. And for me, that’s the way I choose to look at failures.

Tom DuFore, Big Sky Franchise Team (11:35):

Yeah. Thank you for sharing that. I love it. Well, I’ve been wanting to have you on the program for a while now but what really triggered it was, there was an article that you released recently that really just intrigued me and caught my eye and made me think about a lot of entrepreneurs, executives, business leaders are familiar with the term, the corporate veil, and they’re all familiar with that, but your article and what you released was really detailed and showing a lot of information. It made me think I have a sneaky suspicion that there are a lot of folks who maybe are familiar with the term but don’t know what it actually means. So what does that actually mean? What is the corporate veil?

Nellie Akalp, CorpNet (12:23):

So the corporate veil is for those businesses to have a corporation or an LLC by becoming a corporation or an LLC, by forming a corporation or an LLC, they are building this shield around themselves as the business owner or owners of that corporation or an LLC. And the corporate veil, the way I like to look at it is like, think of a shield around you as the business owner of that corporation or an LLC in terms of those who have a corporation and have their business structure as a corporation, the corporate veil would be around the shareholders of that corporation because the shareholders are the owners of that corporation, whether it be a C-corporation or an S-corporation. In terms of an LLC, that corporate veil would be around the members of the LLC, the members of an LLC are the owners of the LLC.

Nellie Akalp, CorpNet (13:28):

And that corporate veil is what protects the business owners from being personally liable for any wrong or any liability that the business would be liable for. It also prevents that business owner from having their personal assets up for grabs if that corporation or LLC was to be the subject of a lawsuit and there was a judgment entered against that corporation or an LLC that would otherwise make that corporation or LLC liable. And if this corporate veil was not in effect and the members or shareholders of this business were actually not a corporation or an LLC i.e, if that business was not incorporated or set up as an LLC, then there would be no personal asset protection or liability protection. There would be no corporate veil. And the owners of that business would be personally liable. For example, if it’s a partnership where that business has multiple owners, those partners would be jointly and severally liable.

Nellie Akalp, CorpNet (14:51):

If it was a single owner, that single owner would be liable and liability can extend to your house, your car, your savings account, your retirement account, if one is not a corporation or an LLC, if there is no corporate veil, then that liability extends to you as that person, as that owner of that business. As such when businesses place themselves into a corporation or an LLC, when they form a corporation or LLC, the most important benefit of incorporating or forming an LLC is liability protection, asset protection. You’re creating this corporate veil, you’re creating the shield so that, God forbid, if that corporation or LLC was to be the subject of a lawsuit, and there was a judgment entered, the person who won that lawsuit can come after the owners of that corporation or LLC personally, and judgment would only go against whatever is in that corporation or LLC and whatever assets the corporation or LLC owns. And they can’t go after the owners of that corporation or the members of that LLC, personally.

Nellie Akalp, CorpNet (16:18):

However, that’s only if that corporate veil is maintained, okay? And if that corporation or LLC is maintaining compliance and maintaining that corporate veil by operating that corporation or LLC accordance with the state laws of that state. There is something called piercing of the corporate veil. And if that corporate veil is pierced, the question becomes well, how is that corporate veil pierced? Piercing of the corporate veil means that that corporation or LLC is engaged in illegal activity or engaged in conduct that goes against the laws as to how a corporation or LLC should generally be conducted. Some examples of piercing of the corporate veil would be, for example, you set up the corporation to hide money or to launder money. You set up a corporation or LLC, and basically you’re taking anything that’s personal and personal expenses and marking them as business expenses.

Nellie Akalp, CorpNet (17:41):

For example, another way to see it is an S-corporation where by the S-corporation shareholders want to be an S-corp and they want to take a paycheck but they’re not taking a reasonable salary they’re taking a minimal salary and taking the rest as a draw so that they don’t have to pay payroll taxes. Another example would be co-mingling personal funds with business funds. So lots of different examples of how a corporate veil can be pierced. And when that corporate veil is pierced, the corporation or LLC loses its corporate shield. And at that time, God forbid, if there’s a judgment entered against that corporation or LLC, as a result of that corporate veil being pierced, then that corporation or LLC doesn’t have any protection anymore and they can go again, not only after the corporation, but after the members or shareholders of that corporation or LLC jointly and severally.

Nellie Akalp, CorpNet (18:53):

So at the end of the day general rule is that when you form a corporation or LLC, you’re creating that shield around you. You’re creating that bubble around you. However, when that corporate veil or corporate shield is pierced as a result of wrongful conduct by the members, by the shareholders of that corporation or LLC, then what happens is basically that corporation or LLC not only can be liable, but the owners of that corporation or LLC can also become personally liable where they otherwise would not have been.

Tom DuFore, Big Sky Franchise Team (19:36):

Well, thank you for sharing that. And Nellie, so what are some ways then or some things that as a… Let’s just assume that my business is incorporated or I formed an LLC, but what are things that I should be doing to keep that corporate veil intact or protected to really prevent that worst case scenario you were just describing?

Nellie Akalp, CorpNet (20:02):

That’s a great question. So generally speaking, I’m so happy you bring this up because a lot of times business owners will set up the corporation or LLC, and then there’ll be like, you know what? I formed a corporation or LLC, and my job is done. And that is actually not the case. It’s the worst thing you could do because with a corporation or LLC, and I know these days, a lot of people are opting for the LLC because there’s a lot less administrative work that’s involved in running the LLC. So a lot of business owners will offer an LLC because you get the best of both worlds with an LLC. You get that liability and asset protection without all the corporate formalities that often are associated with a corporation. However, regardless whether it’s an LLC or whether it’s a corporation, there are still responsibilities that you as a business owner must comply with in order to keep that LLC in compliance so that you do not lose that corporate veil, you do not lose that corporate shield.

Nellie Akalp, CorpNet (21:08):

One example is making sure that you filed timely, the annual report, also referred to as a statement of information within the state that the LLC is set up. We have a list state by state of when that annual report is due for the corporation or LLC for your state on the website. If you’re a corporation, whether you’re a single man corporation or multi-man corporation, you by law have to have an annual meeting every year even if it’s with yourself and you have to draft annual meeting minutes for your corporation failure to do so, can possibly place that corporation a non-compliance. If you have structured a C-corporation and elected S-corporation status to be treated as a pass through tax entity and you want to list yourself as the shareholder, as an employee of the corporation, you better to be taking a reasonable salary.

Nellie Akalp, CorpNet (22:18):

As an employee you better set up yourself with an employer account and registered for a employer tax registration so that the state knows that you’re an employee you’re on payroll and you’re withholding the necessary taxes. You have state unemployment, insurance, etc. Let’s say you’re an LLC and you decide that the LLC is now engaging health as employees, that LLC has to register for payroll taxes, for employer taxes. Let’s say your LLC is providing services and those services that you’re selling, you’re charging a tax for it. You have to register for sales and use tax. Other examples would be, let’s say the LLC or corporation is considering expanding, my understanding of your audience is that you deal with a lot of business owners who’ve been in business for multiple years, and they are in the midst of considering how to expand whether they should expand. They’re in a growth stage at the growth cycle of their business.

Nellie Akalp, CorpNet (23:36):

And oftentimes what we see for business owners is they want to expand into other states. And as a corporation or an LLC where you’re up in the home state and you’re now planning on expanding into other states, that corporation or LLC has to foreign qualify within those other states. There are steps, there are legal steps that a corporation or LLC has to take in order to start doing business in those other states. Oftentimes what we see is business owners doing business in other states, but not registering in those states and they’ll come to us and they’ll be like, hey, I just got hit with the taxes for Colorado or state acts or statewide. And it’s because they’re not conducting themselves legally and in compliance with laws within that state.

Nellie Akalp, CorpNet (24:33):

Another example would be, let’s say your corporation or LLC wants to do business under a different name. If you’re doing business under a different name, and that name has not been properly registered under the umbrella of that corporation or LLC, in and of itself, that business is considered a sole proprietorship or partnership depending on how many owners it has. So for example, if your corporation or LLC decides it wants to do business under a different business name because you’re now offering a different type of a service, the corporation or LLC must file what is called a Doing Business As filing under that variation of that name so that that other name can fall under the umbrella of that corporation or LLC.

Nellie Akalp, CorpNet (25:29):

So at the end of the day, it’s really about making sure that your I’s are dotted, your T’s are crossed and you’re following and maintaining and conducting your corporation or LLC in compliance with your state laws and regulations and making sure you’re filing your taxes on time, you’re paying franchise taxes on time, etc. And as a company, we’re here to guide you and we can assist you, and we can really be a resource to you and your clients to make sure you are taking these steps so that your corporation or LLC maintains its corporate veil and doesn’t lose its corporate veil.

Tom DuFore, Big Sky Franchise Team (26:14):

Yeah. Thank you for sharing that. That was just a wealth of knowledge. Thank you. That was awesome.

Nellie Akalp, CorpNet (26:20):

Thank you.

Tom DuFore, Big Sky Franchise Team (26:21):

Yeah. Well, Nellie, I’d love to jump into our little format for the show and have you share your misses, makes, and multiplier. So we’ll go through them one at a time. And I’d love for you to share maybe a miss or two that came along the way and something you might’ve learned from it.

Nellie Akalp, CorpNet (26:38):

So for me, the biggest miss was when I started my second company, my second journey in this industry and being in this industry for the past 25 years, as a business owner, you get this ego whereby, I’ve done it before I can do it again. And the biggest learning experience that I got is that what you did in the past, you can’t repeat those same acts and to expect to get a different result. So for me, my biggest miss in starting CorpNet was not niching our products and services out the way we do it currently and not niching to a specific market and having to go through years and years of disappointment with CorpNet thinking I’ve done it before, I’m going to follow the same model and hoping that I’ll get a different result.

Nellie Akalp, CorpNet (27:40):

And the aha moment for me was really realizing that what you did in the past, you can’t really repeat because times are different. When I started our first company with my husband, we were at the birth of the internet like you could put up a business, no matter what it was, and you could get first page rankings and you had orders coming into you in no time at a blink of an eye. Whereas when I started CorpNet, I started CorpNet at the height of the recession.

Nellie Akalp, CorpNet (28:18):

So for me, the big aha moment was that what I did back when I started my first company, I can’t follow that same model because the times are different, our economic climate was different and that was the biggest miss for me. And I would say the biggest make, the biggest aha moment for me was when I realized that niching for my company, when I realized how the partner program and creating this partner program and niching out to getting our services realized by how there was a service available to franchise owners and franchisees or accountants and attorneys representing clients and how going after those clients that can bring us multiple clients versus going after that single based transactions.

Nellie Akalp, CorpNet (29:19):

So the miss at the end of the day was not realizing how I needed to niche my services and go after a particular market. And the make was the aha moment of creating our CorpNet partner program and really seeing the pedals going to metal instantaneously.

Tom DuFore, Big Sky Franchise Team (29:44):

Yeah. What a great story, how those two are really interlinked. It’s one in the same, without the one you don’t have the other, so it’s really great.

Nellie Akalp, CorpNet (29:54):

Yeah. I’ll tell you, there is so much business to go around for anybody. So anybody who’s in a business and they’re thinking, I’m not making enough money, you need to listen to what really… Tap in and really go, okay, who are my clients, who are my top clients? And for us, it was not easy. It’s like at one point we were like, we’re basically putting so much money into this business where we were practically paying to work for the business.

Nellie Akalp, CorpNet (30:28):

And one day I remember it was towards the end of the year and we were getting a list of our top clients to send them Christmas gifts or holiday gifts. And when I saw the client list, I noticed that our top clients are attorneys, accountants, CPAs, and franchise companies who are helping businesses grow like yourself and I’m like, wait a minute, I’m done. I can’t go after that single based client anymore. I can’t go after that B2C client anymore. I’ve got to change my business model and our business model needs to be more B2B. We need to go after businesses who are representing clients who need our services. And the minute we pivoted and we made that switch, everything fell into place and it was like this domino effect headed towards success, continued success, multiplied success, which I guess brings you to your third question of what was the multiplier.

Tom DuFore, Big Sky Franchise Team (31:41):

Yeah. I love it. Great way leading in, I think going that way. Perfect.

Nellie Akalp, CorpNet (31:47):

And I guess the question as to what is my multiplier is really starting the partner program and seeing how it created this plethora of opportunities for us. Because with our partner program, it was really a way, a network of attorneys, accountants, a franchise team of experts who represented clients who wanted to take their clientele to the next level. And it in a way became its own marketing vehicle whereby we created this vehicle and it just took off on its own. And by word of mouth, we started receiving multiple clients, multiple partners and partners referring us to other partners. So I would say that the partner program itself and our partnerships with other businesses was our multiplier.

Tom DuFore, Big Sky Franchise Team (32:56):

Yeah. Fantastic. Yeah. Thank you for sharing that. And, well, the last question we like to ask every guest now is what does success mean to you?

Nellie Akalp, CorpNet (33:06):

Success for me is really, really living a wholehearted life, which is three parts. It’s consists of being compassionate, having the right people, having the right contacts into place. So it’s really based on compassion, connection, and creativity. And those are the three things that I would say really led to my success coupled with courage and having that compassion, having that correct courage, having that connection to really go after what you feel is right, and how you’re going to get there. And going after it with this mantra of speaking your truth and doing what’s right, doing what’s right in business. And I think that’s really, for me, one of the reasons why, we’ve been successful is because, I believe in truth in business. I believe in having courage, I believe in having compassion and I believe in having the proper connections because without connections humans… Us humans, we need connection.

Nellie Akalp, CorpNet (34:30):

And to me, it’s not about, hey, I’m an entrepreneur and I’ve done all this work and as a result, I’m successful. It’s about the connections that I have created along the way that lend to my success. And I really do believe that success comes from the sum of all its parts. And for me, it’s truly just living a whole-hearted life. And at the end of the night, going to bed saying, I’m enough and I’ve done my job and paying it forward to everybody else. And knowing that I’m helping a lot of people, helping them blaze their trails and knowing that I’m doing good in this world.

Tom DuFore, Big Sky Franchise Team (35:17):

Yeah. Thank you for sharing that. Well, and Nellie, what’s the best way if someone’s listening in, they want to get in touch with your organization, or maybe they’re starting a new business, or they want to maybe just assess where they fall on that whole assessment of the corporate veil. What’s the best way for someone to get in touch with your organization?

Nellie Akalp, CorpNet (35:37):

So the best way is you can check us out on As I mentioned, our website,, we are a business filing service we’re one-stop business filing service where we can help you if you’re considering starting a business, forming a corporation or LLC. Or if you have a corporation or LLC, and you want to maintain that corporation or LLC incorporate compliance so that you’re maintaining your corporate veil, we provide any type of business filing service, any type of compliance filing service in all of the 50 states. Tom has been a client of ours for several years, I think at least 10 years. And Tom’s dedicated account manager is Amanda Beren. And Amanda has been with the company since inception. She is a 50 state business filings expert. So reach out to her, reach out to CorpNet. You can email us to If you’d like to reach out to Amanda directly, her number is (888) 449-2638, extension 105. Again her name is Amanda Beren and her email is abarren, that’s

Tom DuFore, Big Sky Franchise Team (37:08):

Nellie, thank you so much for being here. I’m so grateful for your time and for you being a guest on the program, and let’s go ahead and jump right into our three key takeaways. So takeaway number one is when Nellie spoke about and shared how when she started her second company, she thought that if she just did exactly what she did for the first company, that the same results would happen from the second company. But as she mentioned, when she started the two businesses, they were very different many years apart, the market changes, things change the world changes.

Tom DuFore, Big Sky Franchise Team (37:40):

And so she realized that she needed to make a change in how she was running her business, which leads us to take away number two, which is she realized that she really needed to find her niche. What’s her core focus, that area of expertise, and after she found that and went after it, amazing things happen, how she said she went from 10 employees to 50 employees in just about a year.

Tom DuFore, Big Sky Franchise Team (38:05):

And then takeaway number three, I loved how Nellie shared about the four Cs that she finds to be what makes her successful or where she finds success. And she shared compassion, connection, creativity, and courage. I thought it was really great, easy to remember compassion, connection, creativity, and courage. Now it’s time for today’s win-win.

Tom DuFore, Big Sky Franchise Team (38:31):

So today’s, win-win ties directly into the theme of the show which is all about the corporate veil. And number one, have you created a corporate veil to protect your business and personal assets? And number two, making sure that you’re maintaining that corporate veil, it’s an important aspect as the leader of your business and for most of our audience that’s tuning in, you’re the owner of your business. So making sure you are protecting your business assets for your staff and your team members and making sure you’re protecting your personal assets for you and your family.

Tom DuFore, Big Sky Franchise Team (39:10):

And so that’s the episode today folks, please make sure you subscribe to the podcast and please, please, please leave us a review, we greatly appreciate it. Remember if you or anyone you know might be ready to franchise your business, please connect with us at Thanks for tuning in. And we look forward to having you back next week.

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