Detailed Answer

Disclaimer: This is educational information only and not legal advice. Consult a qualified West Virginia attorney about your specific situation.

If you are self-employed and lost income because of an accident, you must create a clear, credible record that shows the income you would have earned and the income you actually earned. West Virginia courts and insurers require proof of economic loss with reasonable certainty. Contemporaneous business records and objective third-party documents are the strongest evidence.

What the legal standard looks like

Under West Virginia law, plaintiffs claiming lost earnings must prove the amount and causation of the loss with reasonable certainty. A judge or jury will compare your pre-accident earning history and normal business patterns to the earnings after the accident, adjusted for things like seasonal variation or market trends. You should preserve evidence now—records degrade and memories fade.

Types of losses to document

• Past lost earnings (actual income you lost between the accident and trial/settlement)
• Lost business profits (if your profit margin was affected)
• Loss of earning capacity (if the injury reduces future ability to work)
• Expenses incurred to try to keep the business running (e.g., hiring help)

Documents and evidence that help prove lost income

Gather as much of the following as you can. More objective records carry greater weight.

• Tax returns: Complete federal and state returns for several years (at least 2–3 years before the accident and the years after). Schedule C, K-1s, S-corp/partnership returns, and corporate returns help establish baseline earnings and profit margins.
• Profit & loss statements: Monthly or quarterly P&Ls from accounting software (QuickBooks, Xero) that show gross revenue, cost of goods sold, and net profit.
• Bank and credit-card statements: Deposits and business receipts corroborate invoices and cash sales.
• Invoices and receipts: Copies of bills sent to clients and paid/unpaid invoices showing cancelled or delayed work because of the accident.
• 1099s/contractor reports: 1099-MISC/NEC forms and client statements that show payments from customers.
• Contracts and job agreements: Signed work contracts, proposals, or purchase orders showing fees and scheduled work lost due to injury.
• Appointments, calendars, and communications: Emails, texts, calendar entries, and messages where clients cancel, postpone, or refuse work because of your injury.
• Marketing & rate evidence: Price lists, website rate pages, past advertisements or listings that establish your usual rates.
• Contemporaneous notes: Daily logs, mileage logs, job notes, and journals kept at the time of the accident or while recovering.
• Payroll or subcontractor records: Bills you paid others or wages you would have paid that you could not because of lost work.
• Photographs and proof of incapacitation: Photos of injuries or medical records that help connect the accident to your inability to work.
• Expert reports: A CPA or forensic accountant can reconstruct earnings when records are incomplete. A vocational expert can opine on lost earning capacity.
• Third-party corroboration: Testimony or statements from long-term clients, suppliers, or partners who can confirm lost jobs or canceled contracts.

How to calculate lost income as a self-employed person

There are two common approaches:

1. Actual lost profits method: Compare actual net profits during the recovery period to a reasonable baseline (average net profits for comparable past periods). Use tax returns and P&L statements, but adjust for non-business personal expenses and one-time events.
2. Lost capacity or projected income method: If the injury will affect future earnings, calculate a reasonable projection of future lost profits based on historical growth rates, contracts you had in place, and expert testimony. Discount future losses to present value as appropriate.

Key notes on calculations:

• Use net profit, not gross receipts, when claiming wages equivalent—courts focus on what you actually earned after business expenses.
• Adjust for seasonal trends, industry-wide changes, and personal non-business expenses that appear in your records.
• If you drew personal paychecks from business profits, explain and document how draws relate to business earnings.

When records are incomplete

If you lack perfect records, courts permit reasonable reconstruction. Methods include averaging past years, using bank deposits as proxies for revenue, and expert reconstructions. The key is credibility: explain why your method is reasonable and back it with whatever contemporaneous evidence exists.

Mitigation and credibility

You have a duty to mitigate damages. That means you must show you took reasonable steps to reduce your losses (e.g., tried to subcontract, marketed for remote work, or reduced overhead). Failure to mitigate can reduce recovery. Also be candid: inconsistent statements or late-produced documents harm credibility.

Practical steps to take now

1. Preserve all business records and electronic files; make backups.
2. Request duplicate records from banks, clients, and accountants if originals are missing.
3. Create a clear chronology of what jobs you missed and why—date, client, fee, and supporting communications.
4. Pay attention to tax filings—amend returns only with a CPA’s advice and keep documentation for any changes.
5. Consider hiring a CPA or forensic accountant early; they can create credible reconstructions and reports useful in settlement talks or court.

Timelines and legal deadlines

Statutes of limitations and procedural rules affect when you must file a claim. For state law and to confirm any applicable deadlines or court rules, consult the West Virginia Code and the state court system:

• West Virginia Code: https://code.wvlegislature.gov/
• West Virginia Judiciary: https://www.courtswv.gov/

When to hire a lawyer and what to bring

Contact an attorney experienced in West Virginia personal injury and business-loss claims if you face large losses, disputes with insurers, or if causation is contested. Bring the following to your first meeting:

• Tax returns (3–5 years)
• Accounting reports (P&L statements, balance sheets)
• Bank/credit-card statements
• Invoices, contracts, 1099s
• Medical records linking injury to inability to work
• Client communications showing canceled or lost work

An attorney can advise whether a forensic accountant or vocational expert will strengthen your claim and can guide you through discovery, subpoenas for client records, and settlement negotiations or trial.

Bottom line

To prove lost wages as a self-employed person in West Virginia, build a paper trail showing: (1) your pre-accident earning baseline, (2) the income lost after the accident, and (3) how the accident caused that loss. Use tax returns, accounting records, client communications, and expert reconstruction if needed. Preserve records, mitigate losses, and consult a West Virginia attorney to protect your rights.

Helpful Hints

• Start preserving records immediately—back up digital files and scan paper documents.
• Keep a contemporaneous recovery journal: note dates you could not work, why, and what jobs were lost.
• Use tax returns to prove income but be ready to explain business expenses and personal draws.
• Get written statements from clients who canceled work because of your injury.
• Consider a short letter from your treating physician tying functional limits to lost work capacity.
• Don’t sign settlement offers without an attorney review if losses are significant.
• If records are scarce, hire a forensic accountant early to reconstruct income credibly.
• Ask your lawyer to subpoena client payment records if a client refuses to produce documents voluntarily.

If you want help finding a West Virginia attorney or need a checklist customized to your business type, consider contacting a local lawyer for a consultation. An attorney can explain deadlines that may apply to your claim and advise whether litigation or settlement is the better path.