[roland00]

The point of this is misdirection sometimes known as cooking the books, where you may have financial documents that say money exist, but they documents are separate from another set of books that says money doesn't exist.

You provide the cooked books to anyone who is suing you, Uncle Sam for taxes, and so on. Of course you have another set of documents that tells you where your money is, the point of having two set of books is to use one set to lie, misdirect, be non truthful in a court of law.

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And Limited Liability Corporations have good faith as part of their contract as a requirement. You commit purposeful fraud and the LLC will not shield you. The term for this is known as "Piercing the Veil" / "Piercing the Corporate Veil" and when the veil is pierced your assest away from the corporation can be seized for behavior you did as an agent of the corporation.

Now what are the rules of Piercing the Veil depends on your state for each state has different rules for Limited Liability Corporations, that said all 50 states have ways to pierce the veil for it is just a settled part of common law in the US.

[neeleshs]

This practice of different books has a nice phrase in Karnataka,India - "Ramana lekka, Krishnana lekka". Literally, "Rama's accounting and Krishna's accounting".

Rama is personification of righteousness and Krishna, while a God, is also considered mischievous.