Though it is common in all entity types, we see individual control most in disregarded entities; usually LLCs that have a single member and are therefore disregarded for tax purposes. Because of their disregarded nature, the books are often neglected, and that “single member”generally manages and controls the entity. We have found that many of these do not even operate out of separate banking account. This gives us pause as to why the entity was formulated at all. Most likely it is to protect the parent entity or individual from any liability it may incur. Individual control can lead to veil penetration and the parent may then assume the disregarded entity’s liability.