You're talking about limited liability companies, which is a legal structure relevant for civil claims.

Someone committing crimes "on behalf" of a company is not protected by the corporate veil and absolutely will get prosecuted individually (well, for small companies -- big companies get to play with different rules, which was the point GP was making).

Also the corporate veil is not absolute, it can get pierced in a few cases, and not everyone incorporates when they do contract work (in which case you need indemnity / private liability insurance).