Owning your own business is great, except if you’re in a car accident, and can’t work.
If you own your own business it is often very difficult to prove that your business lost money while you couldn’t work. The law says you must prove how much your business lost with “reasonable certainty.” Nobody knows exactly what that means.
But over the years, I have found that the best way to prove lost profits is with copies of your appointment book, and letters from your customers saying that they were going to hire you, but didn’t because you were injured.
You can also use past tax returns, past sales, and/or comparable businesses, but nothing is better than real customers saying you couldn’t work for them.
In contrast, proving lost wages when you’re an employee is simple. You simply take your hourly wage or yearly salary (broken down into hours) and multiply it by the hours you missed, and that’s it.
If You’re Self Employed Your PI Case is Complex