Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
A shell corporation is a business entity without active business operations or significant assets, often created for financial maneuvering. They are frequently used for anonymity and to manage funds, ownership rights, or as a tool in tax strategies.
Related terms
Money Laundering: The process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be legally earned.
Tax Haven: A country or jurisdiction with low taxes that attracts foreign businesses and individuals seeking to reduce their tax liabilities.
An organization that collects political donations from members and donates those funds to campaign for or against candidates, legislation, or ballot initiatives