Recommended Encoding for VHS to Digital to be Followed by Post Processing
VHS is already highly 'compressed', so capturing to an uncompressed format is likely overkill. For your purposes MJPEG with a reasonably high quality setting will preserve all your options and shouldn't degrade the images any further than VHS already has.

MJPEG goes by other names -- the idea is that it's all "I-frames". It is a lossy codec, but there are no interframe artifacts since each video frame is encoded separately.