Make sure you have a lawyer write up the paperwork so you are protected and you both know what is going on. 

Yes, protection starting off from the beginning

I have a friend in Tucker with a minor switch problem needs an electrician that could be a substantial issues.

All three forms should give you protection of your personal assets against corporate liability, as long as certain procedures are followed.Talk to a qualified business attorney, tax attorney and/or CPA to get better advice.

There is a further discussion to be had about protection from establishing LLC's but then there is a counter discussion on piercing the corporate veils and getting to personal assets.

I may get shouted down for this, but I opted to switch all of my accounts from the banks who had a big part in taking down our economy in the first place to my local credit unions and neighborhood banks.  

You can always switch to another broker when you get more experience.

Are you going to record the option at the courthouse to protect your position?

Should I put the inspection contingency in just as protection for myself?

In order to be completely protected it is good practice to make sure both the title & insurance policy are in the same "business name".