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. ...Show more