There are several reasons that a court can use in order to pierce the corporate veil. As thuytienlecao listed above, more than one reason can exist in order for a court to hold off on being liable and hold a corporation’s shareholders or directors liable. I believe that one of the main reasons that a court decides to do this is because the corporation does not capitalize or cannot capitalize the company. They may also pierce the veil if there is no real separation from the company and its owners. For example, if the owner decides to pay his or her personal bills from the money earned from the company, this could call for a piercing of the veil. It could also be pierced if there is corruption or fraudulent activity going on. Small business owners are at the most risk for to have their personal issues translate to their corporate duties. My advice would be that they be careful in their transactions and make their personal and corporate banks separate.