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  • Litigation Consulting - QuickRead Top Story

    Estimating Lost Profits for a Self-Employed Business: What are a Self-Employed Person’s Earnings? What are Their Profits?

    March 5, 2025

    This article will discuss some of the unique factors relating to assessing lost profits for self-employed operated businesses. As examples, two extremes will be discussed. These extremes provide virtual bookends when assessing a claim of lost profits by a self-employed person. The first addresses a self-employed person who reports his/her income through a Schedule C, Sole Proprietor. The second addresses self-employed individuals that own and operate a subchapter S corporation and file an 1120S for that business. Financial experts will often be asked to estimate the lost earnings or lost earning capacity for an injured self-employed person. This type of…

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