Daughter owned S Corp

[DaveinTexas]

My client wants to form a S Corp, of which his daughter will be the sole shareholder. He and his wife are involved in some litigation pertaining to his former business partner, thus he does not want to have ownership in this corporation.

He and his wife do want to be the directors of this corporation. Legally speaking, will this defeat the point of keeping himself set apart from this corporation in the event the litigation carries over to this new venture? By the way, the new corporation's activities is his wife's creation and separate from his current business.

TIA

[taxmandan]

This is a legal question and best to ask a lawyer

I doubt that will work if the client is involved in any way with the business. But you need legal counsel to answer it correctly.