Question:

We are a small auto shop with 1 full-time and 2 part-time workers. What is the safest way to incorporate the business?

Answer:

There are several types of corporate structures and the one you really want is the one that best provides for your future plans. For example do you want to grow this into a company with more than 25 employees? Upcoming health care legislation should be factored into your choice. If you expect to have partners in the business, that should be considered. I'd suggest that you begin by considering a limited liability company, or "LLC" which is a business organization structure that allows for certain favorable tax treatments, as well as personal liability protection, for the "members" involved. Of course you should talk to your tax advisor as well for input on what will be the best structure for your business.