shell companies can have legitimate business purposes. they may, for example, act as trustee for a trust, and not engage in any other activity on their own account. this structure creates limited liability for the trustee. a corporate shell can also be formed around a partnership to create limited liability for the partners, and other business ventures, or to immunize one part of a business from the risks of another part. shell companies can be used to transfer assets from one company into a new one, while leaving the liabilities in the former company.