ELI5: Explain Like I'm 5

Dummy corporation

Okay kiddo, a dummy corporation is like when you play pretend and pretend to be someone else. But instead of playing with toys, grown-ups can play pretend with a company. They create a new company with a fake name and use it to do things they don't want to do under their real name.

It's like when you make a fake birthday party invitation so you can invite some friends you really like, but you don't want the other kids in your class to come. The fake invitation is like a dummy corporation, it's not real but it lets you do things without people knowing it's really you.

The grown-ups can use the dummy corporation to hide sneaky or secret things they are doing. It's not always a good thing, some people use it to do bad things. But sometimes, it can be used for good things like protecting your personal information or privacy.
Related topics others have asked about: