Detailed Answer

This article explains practical steps and the types of proof that most help a self‑employed person in Wyoming recover lost income after an accident caused by someone else (or to pursue other benefits). It assumes you run your own business (sole proprietor, single‑member LLC, independent contractor, gig worker) and that an injury stopped you from working.

Short overview

Courts and insurers want to know two things: (1) how much income you actually lost because you could not work, and (2) that the lost income directly resulted from the injury. For self‑employed people, courts typically measure lost earnings by reference to net income (profits) rather than gross receipts because taxes and business expenses would have been paid regardless.

Relevant Wyoming law and resources

Wyoming allows recovery of compensatory damages, including lost earnings, in civil claims. For general access to Wyoming statutes, see the Wyoming Legislature statutory site: https://wyoleg.gov/Statutes. If your injury arose from work activity, Wyoming workers’ compensation rules may apply—information from the Wyoming Department of Workforce Services is available at https://wyomingworkforce.org/.

Typical documentation to prove past lost income

Gather every contemporaneous document you have that shows what you earned before and after the injury and why you could not work. Examples that courts and insurers find persuasive:

• Copies of federal tax returns (Form 1040 and Schedule C) for the prior 2–3 years to show a baseline of net income.
• Business bank statements showing deposits tied to business income.
• Invoices, receipts, contracts, purchase orders, and paid bills that establish work you performed and revenue you lost.
• Accounting software reports (QuickBooks, FreshBooks, Wave) showing profit & loss statements and accounts receivable aging.
• 1099s or other statements of payment from clients showing income earned in prior years.
• Daily logs, appointment books, project schedules, or delivery records that show booked work missed during your recovery.
• Emails, text messages, and client communications showing cancellations or lost projects directly caused by your injury.
• Bank transfers and canceled checks that reflect payroll you paid to yourself or contractors tied to business revenue.
• Photographs of physical inability to work (e.g., an injured hand), if relevant and respectful of privacy.
• Medical records and physician notes documenting your injury, treatment, and the medical provider’s opinion about the period you were unable to work.

Proving future lost income (if applicable)

If your injury reduced your future earning capacity, you will need additional proof:

• Expert opinions from a vocational economist or accountant who can project lost profits and convert future losses to present value.
• Historical financial trends showing growth or decline in your business to support projections.
• Contracts or client commitments that were likely to produce future income but were lost because of the injury.

How courts and insurers calculate the amount

Analyze your net business income rather than only gross receipts. Common approaches include:

• Average net profit method: Average your net profits over the prior 2–3 years and apply that average to the period you missed work, with adjustments for known growth or seasonality.
• Actual‑loss method: Add up invoices and contracts you would have performed and then subtract the expenses you would have incurred to perform that work (yielding net profit lost).
• Expert valuation: A forensic accountant prepares a detailed lost‑profits model, often required for complex or high‑value claims.

Special considerations for self‑employed claims in Wyoming

Keep these Wyoming‑specific and practical points in mind:

• Documentation matters more when you are self‑employed. Courts and adjusters are cautious about accepting uncorroborated testimony of lost income.
• If you carry workers’ compensation coverage as a business owner or were injured while performing contracted work for an employer, review the Wyoming workers’ compensation rules and deadlines through the Wyoming Department of Workforce Services: https://wyomingworkforce.org/. If you do not have workers’ compensation coverage, your remedy will typically be a tort claim against a third party.
• Wyoming law allows recovery for past and future lost earnings as part of compensatory damages in civil cases; verify applicable deadlines for filing a lawsuit (statute of limitations) on the Wyoming Legislature site: https://wyoleg.gov/Statutes.

Practical steps to preserve and present proof

1. Immediately collect tax returns, profit & loss reports, invoices, and bank statements for the past 2–3 years.
2. Ask your accountant to prepare year‑to‑date profit & loss statements and a clear explanation of how your net income is calculated.
3. Keep a contemporaneous injury diary describing each day you were unable to work and why. Note communications with clients and cancellations.
4. Obtain thorough medical documentation describing restrictions and the recovery timeline; ask your treating provider to state when you were unable to work and why.
5. Consider hiring a forensic accountant or vocational expert early if the claim is high‑value or contested.
6. Preserve electronic records and back up your accounting files; insurers and courts expect organized, reliable records.

Example (hypothetical)

Suppose you are a sole‑proprietor contractor who, before the accident, averaged $4,000/month net income (based on Schedule C and bank deposits). An accident sidelines you for eight weeks and you lose two months of billable work and several signed contracts for future projects. You would gather your 2–3 years of tax returns, monthly P&L showing the $4,000 average, the specific invoices and contracts you could not complete, client emails cancelling work, medical records stating you were medically unable to perform work, and a calculation from an accountant showing $8,000 lost net income for the two months plus any reasonable projections of future losses. An insurer or court would evaluate these documents to determine a fair award.

Helpful Hints

• Keep copies of everything now—court cases and adjusters rely on contemporaneous records more than memories written later.
• Focus on net profit rather than gross receipts; expenses you would have paid anyway reduce the amount of recoverable lost earnings.
• Use an accountant to translate business records into the clear financial statements that insurers and judges expect.
• If an insurance adjuster asks for a recorded statement, consult an attorney before giving it.
• Track fixed vs. variable expenses. If you hired temporary help that you nonetheless had to pay during recovery, that can increase your recoverable losses.
• Ask your medical provider to tie incapacity directly to your inability to perform key job tasks (this link strengthens your claim).
• Preserve client contact information so you can obtain written statements that a cancelled job was lost because of your injury.
• Meet filing deadlines—statutes of limitation vary by claim type in Wyoming; check the Wyoming Legislature site for deadlines: https://wyoleg.gov/Statutes.
• For complex or substantial claims, consider early consultation with a Wyoming personal injury attorney or a business damages accountant.