My sister also uses "shell" companies. She is a prominent ex-scientologist and scientology has an established history of using litigation to punish and silence critics and exmembers. So when her car gets rammed, and she gets sued, by being broke she can't pay damages, and the car is owned by an LLC that only owns the car, so the plaintiff is limited in the amount of money they can extort.

She has more than a dozen LLCs just to protect what little she owns.