Under Massachusetts Law Corporations are legal entities, with a life of their own. This is true whether the corporation is a giant like IBM or a small home-based business that is incorporated by its owners.
People form corporations for many reasons.
In real-world terms, the need to pierce the corporate veil becomes crucial to, for instance, an accident victim who sues a corporation that has no assets and no or little insurance even though the corporation's sole shareholder is worth millions. In such a case, if the veil is pierced the victim will receive compensation if she wins her case. If the veil is not pierced, the victim can only win a meaningless verdict which will never be paid. If you treat your bodyguard well and give it the respect it deserves as its own person, that bodyguard will always and loyally stand between you and an assailant who wants to attack you and take your wallet. The lesson to be learned is to make sure with your attorney that your corporate veil is in place and strong.