It&#x27;s a big problem. Maybe not Zuck&#x27;s application of it, but other applications of this dodge. I think he&#x27;s a good guy, and that good thing he&#x27;s doing exposes some of the lesser known tools used by not-so-great folks.<p>You can easily use this sort of operation to launder money for the purposes of doing all sorts of things. Transfer your money to an LLC, get a web of LLCs or shelf corporations and &quot;sell&quot; valuable services between them.<p>If you&#x27;re a scumbag, in addition to saving on taxes, you can avoid accountability for nasty practices. Slumlords are a great example... many control swaths of cities and use anonymity to hide that fact. So they can do stuff like rig the &quot;prevailing rent&quot; in a area to extract higher public assistance reimbursements, discriminate against people, buy off politicians by giving them sweetheart deals on real estate, etc.<p>If you&#x27;re a not so philantrophic rich dude, you can also do shady Koch-brothers style political bribery or establish a presence in South Dakota to exploit loopholes that will leave your family without any tax obligation for several generations. If you&#x27;re real clever, you use the shady political stuff to create more loopholes for yourself.