Well, he used a popular trick to use LG and Co KG as two seperate entities, usually in the combination GmbH & Co KG. Which is in my eyes unethical and complicated, but tax instructors favor that scheme to limit liabilities. Selbst Schuld. In my own companies I never spent more than I had, and never feared liabilities taking away my personal income. Never needed a lawyer, notar or such leachers. Everything can easily be googled. Could write invoices after two weeks. It needs much longer to get an internet connection.

Germans are crazy taking you to court, but it's not as risky as in the US.