I figured out more about what I have.
There is a 12/3 wire already running to the garage on a 120/240v 20 amp breaker. It terminates at a single plug and then runs back to the house to finish the circuit. The plug was a GFI until I replaced it with a standard one because it would keep tripping on a non defrost freezer.
The set up will allow be to use the 12/3 wire to hook up a 240v 20 or 25amp breaker. However, I still have the 115v that runs back the house to finish the circuit.
So I was thinking that I could install a sub panel in the garage and then set it up for 240 and 115, if it's possible. Not sure if the 12/3 will allow me to do this.
I have a call into a family member that is an electrician, (unfortunately he lives out of state) to see if this is an option.
So much to learn and not a lot of clear info on the net. Until I fix this issue I cannot proceed with a new compressor and welder needed for some body work.