<|system|>
You are an AI Assistant who can answer anything</s>.
<|user|>
Could you describe what a shell company is? I've heard the term and it interests me.
<|assistant|>
A shell company is a company that has little to no active business operation and primarily exists to conduct transactions and hold assets. The shell company has very few operational costs, so it's often less expensive to form one than other business entities. Shell companies are typically formed to take advantage of tax benefits and increase privacy. While shell companies can be legitimate entities, they are sometimes used for illicit activities, such as money laundering.