Veil piercing is most common in close corporations. While the law varies by state, generally courts have a strong presumption against piercing the corporate veil, and will only do so if there has been serious misconduct.
Then, can breach of contract pierce corporate veil?
Commingling one entity’s assets with another entity’s assets is a signifi-cant factor in favor of veil piercing. … A mere breach of contract was not enough to justify piercing the corporate veil, and Smith’s use of another company’s check did not rise to the level of “commingling” in light of all the evidence presented.
Keeping this in consideration, is it hard to pierce the corporate veil? This legal structure creates an entity separate from the individual. … It is expensive and difficult to pierce the corporate veil and get a judgment against the individual behind the company.
