question about writing off legal costs

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hi guys,

I work for plenty of people on the basis of 1099. And sometimes the clients are just ignorant. There really is no other way to say it. So here is my question:

=> If someone brings a legal action against me, what other options do I have other than automatically appropriating funds to defend myself legally if I absolutely have to? Other than that though, if by some miracle I ever lost a court battle over 'x' amount, can that be expensed by a business if you are the defendant? Does the outcome of the court case even matter?

thanks. any information certainly welcome on this! I'm sure it's an incredibly complicated issue.
 

kirby

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Options to defend yourself- there is no free "public defender" for civil lawsuits. So defending yourself is all on your dime.
If you spend money on a civil defense that is indeed an expense for book and tax accounting
 
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If some one fires a case against you, then appropriating funds is the only option I see, though you can hire a civil defenders but then again you have to bear their cost.
 

Samir

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It you don't have some sort of liability insurance for your work, you should get a policy. It helps in cases like this limiting your out-of-pocket expenses somewhat.
 

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