Incorporating does have other benefits as well, including many tax benefits. For instance, some sole proprietors are required to pay the federal tax rate and a self-employment tax, meaning you are being taxed twice; corporations are never allowed to do this.
In response to your questions regarding Bubba, there are a few causes for concern here, but a few issues that may still keep you in the clear. First, Bubba is not a regular employee; as you stated, he came down to help out with some extra work. Second, you did not tell Bubba to do this; you gave him different directions. If Bubba is willing to admit to this, then you may safe and the responsibility may fall on him. However, the medical bills are truly an issue-if one person injures another person it is generally required that the person that caused the injury pay for the medical bills of the other. Next, these individuals were clearly blocking the entrance to your place of business, which is very close to trespassing. It sounds like they were still on public property, however, and the actions of Bubba are still an issue-had he asked them and they refused, calling the police would have been a better alternative.
Still, the situation does not mean you necessarily have to go bankrupt or lose everything, or even lose the business itself. If these individuals have health insurance, they may only be asking for their deductibles to be paid. Therefore, this may amount to only a few thousand dollars. Also, it depends on the extent of their injuries. If any type of surgery is involved, this will certainly be expensive. However, if it is just a few bruises and broken bones we are concerned about, the issue should not cost as much. If Bubba is not willing to take the blame on his own, because he was there on your accord, the liability very well could fall onto the restaurant, and again, some kind of payment will probably be expected.
There are a few things that you can do in this issue in order to prepare yourself. First, I would suggest incorporating as quickly as possible to protect all of your personal assets. This way, only the business, and not everything else, is at risk in this case. Second, I suggest talking to Bubba and seeing how far he is willing to go to assist you with the situation. Third, it may be wise to talk to the people or their attorney, and find out what kinds of medical issues and bills are being considered. It may be easier and less costly to simply settle with the people and pay for their deductibles rather than going to court and possibly spending much more money. Also, if this is done, it is very unlikely that these individuals will have any reason to take the business away.
Therefore, my suggestion is to reach out to start the incorporation process, and then to reach out to these individuals to see what can be done to resolve this issue. Taking these steps will probably save you from losing your business, or losing anything else at the expense of Bubba.
Thank you and please do not hesitate to contact me if you need