There was a recent Planet Money show on this topic. http://www.npr.org/sections/money/2016/03/30/472452808/episode-403-what-can-we-do-with-our-shell-companies

There was a recent Planet Money show on this topic. http://www.npr.org/sections/money/2016/03/30/472452808/episode-403-what-can-we-do-with-our-shell-companies http://www.npr.org/sections/money/2016/03/30/472452808/episo... I was interested to hear the example they had for a legal reason: JOFFE-WALT: But again, Daniel and David emphasized they do not help people launder money or do anything illegal with offshore entities. There are lots of legal reasons to have companies like these. They would repeat again and again as we spend time with them. For instance, they said, imagine, you know, you have a international T-shirt making company, and you have investors from Canada and Mexico and China, all over the world. So sure, you could set up your company here in the U.S. But if you do that, then the Canadian and Mexican and Chinese investors, they all have to file tax paperwork in the U.S. And sometimes it's just easier to set up the company offshore, have the company file all the paperwork. You know, the same amount of taxes gets paid, but ultimately, it's just less paperwork for all the investors.