A corporation with one person who is the only shareholder,officer,and director will have its corporate veil pierced,making that person personally liable for all the obligations of the dominated corporation.

Corporate Veil

The corporate veil is the legal concept separating the actions of a corporation from its shareholders, protecting them from personal liability.

Shareholder

An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution. Also called stockholder.

Obligations

Duties or responsibilities that are legally or morally binding.