Can You Sue an LLC in Small Claims Court?

Can you sue an LLC in small claims court? Yes, as long as it meets the requirements and the financial amount the plaintiff is seeking for damages.3 min read

Can you sue an LLC in small claims court? Yes, as long as it meets the requirements and the financial amount the plaintiff is seeking for damages. The small claims court system was created to allow individuals to settle minor financial and property disputes without a lawyer. The plaintiff and defendant in most instances represent themselves. Some states do allow for attorney representation.

How Much Can Be Collected in Small Claims Court

The amount plaintiffs can receive in small claims court changes. Who is bringing the lawsuit and how many times they have filed in small claims factors in as well. The general guidelines are:

• Individuals or a business owned by an individual (sole proprietorship) can sue up to $10,000.
• Corporations, LLCs, and other business entities are capped at $5,000.
• If a bodily injury or other specific actions are part of the suit, the limit is $7,500.

If a larger claim exists, you are not allowed to break up the claims into different actions. The total claim cannot be above the approved limits.

Preparing a Suit Against an LLC

An LLC is a business type that acts as a separate legal entity. The members of the LLC are not who you would be suing as their personal property and assets are protected. When filing suit against the LLC, the LLC is the defendant, not the members (individual owners or managers.) If a large sum is in dispute, hiring a lawyer is recommended to be sure you are properly represented.

Small claims courts limit the types of cases that can be disputed. Each state has different restrictions but disputes in this system include personal loan disputes, landlord-tenant disputes, and outstanding contract fulfillment. The suit must be filled before the statute of limitations ends, which can be as little as a few years.