 This is referred to as "piercing the corporate veil", and is subject to the rules of the home state where the corporation is a domestic corporation.In the case of corporations domesticated in Nevada, for example, , over the last twenty years, only twice has the corporate veil been pierced, and in both cases the corporation's owners engaged in fraud.One reason for operating as a holding company with separate domestic corporations is because of potential liability issues such as in operating facilities which have high potential liabilities in the event of accident or failure.