One use of shell companies is to protect "not US" businesses from the US govt. The US Govt asserts jurisdiction over companies that do business with US entitie

One use of shell companies is to protect "not US" businesses from the US govt. The US Govt asserts jurisdiction over companies that do business with US entities, even if said companies don't do business in the US. As a result, many "not US" companies won't do business with US entities. One solution involves a shell company outside the US set up by a US entity. That shell company then does business with the "not US" company on behalf of said US entity. This is not a scheme to evade any law. Like any other company, the shell company is responsible obeying the laws of the country where it is based as well as the laws applicable to dealing with the "not US" company. Similarly, the US entity is responsible for obeying all applicable laws wrt its dealings with the shell company. Yes, the US govt can go after the shell company but that doesn't reach the "not US" company.