Piercing the corporate veil occurs when a creditor has a claim against an individual who also owns a business that’s operating in a corporation or another entity that encapsulates the business and keeps it secure from the claims of the individual’s creditors. The piercing occurs most often when the business owner fails to observe the formalities of the corporate structure or the limited liability company’s structure and commingles personal assets with the business assets, which allows the creditor to pierce the corporate veil and get into the business assets.