IANAL, but this seems more theoretically correct than practically correct. The truly wealthy have hierarchies of LLCs for the purpose of tax "minimization".
Edit: maybe it’s not illegal, just a bad idea:
https://www.nolo.com/legal-encyclopedia/llc-basics-30163.htm...
If owners don't treat the LLC as a separate business, a court might decide that the LLC doesn't really exist and find that its owners are really doing business as individuals who are personally liable for their acts.
(Probably also the lawyers are the first to know, so they'll get paid up front and be long gone at the time of collapse.)