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I am afraid that if the business is already having a claim filed against it, I am sorry but it is too late to try to incorporate now to avoid personal liability, since the violation occurred as a sole proprietorship you would end up still being liable. You would have to face this problem in PR and either negotiate a settlement
with her or fight the case in PR. If she gets a judgment against you, then she would have to come to Texas to enforce it against you. The problem is that PR allows for garnishment of wages on a judgment, even though Texas law does not, and if she gets a garnishment order in PR and then comes to Texas to file the judgment for recognition of foreign judgment then the Texas court would have to honor the garnishment order even though Texas does not permit garnishments of wages on Texas court orders.
The only other option beside fighting or negotiating is bankruptcy
if you qualify (but it is not usually prudent to file bankruptcy over a $3000 debt). Of course, you could hope she gets a judgment in PR and does not have the means or does not carry through with coming to Texas to enforce the judgment, but as this is a wage claim, PR could send a request to the IRS to levy your income taxes as well if she pushes the debt enforcement and that is a risk you take as well here.
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