Hop-On Inc (HPNN)

[PRmaniac]

CEO Petey - they finally catching up to you?
......Nevada encourages business ventures and entrepreneurism by allowing individuals to form corporations as a shield against personal liability. Generally, individuals are considered separate from the corporations they control. So, if a corporation fails to pay a debt, the corporation itself is liable, and not its individual owners or operators. (Note: see other articles about Nevada-registered Companies headquartered in California, requiring them to have a business license in California and pay taxes in California)

But the individual protection offered by a corporation is not unlimited. Under the doctrine of “alter ego” (also known as “piercing the corporate veil”), individuals may be liable for the actions of their corporations in certain circumstances. The general question is whether the individual—usually a shareholder, officer, or director—abused the corporate form such that it would be unfair to shield that individual from personal liability. While there are no rigid requirements for the alter ego doctrine, considerations include whether (a) the individual commingled his or her personal funds with the corporation, (b) the corporation was underfunded, (c) the individual treated the corporation’s funds as his or her own, or (d) corporate formalities were observed.