Get paid
When a customer won't pay: how to ask properly, and when small claims court makes sense.
Statewide guides
How to Write a Demand Letter for an Unpaid Invoice in California
How to write a California demand letter for an unpaid invoice: what to include, a free template, deadlines and what not to say.
Get paidSmall Claims Court for California Businesses: How It Works
How a California business uses small claims court to collect an unpaid debt: limits, who can appear, forms, service, the hearing and collecting.
Get paid at a glance
This topic covers what a California business can do when a customer won't pay an invoice. Start with a clear written demand for payment. If that doesn't work, small claims court is a low-cost way to collect a modest debt without a lawyer.
| Item | Rule | Guide link |
|---|---|---|
| Small claims limit | $6,250 for corporations, LLCs and other entities; $12,500 for individuals, including sole proprietors | Small claims |
| Small claims filing fee | $30, $50 or $75 for most filers, depending on the amount claimed | Small claims |
| Time to sue on an unpaid invoice | Generally 4 years on a written contract, 2 years on an oral one | Demand letter |
| Demand letter payment deadline | Usually 10 to 14 days from the date of the letter | Demand letter |
| Serving the defendant | At least 15 days before the hearing, or 20 days if they live outside the county | Small claims |
| Claims over $2,500 | No more than two per calendar year in California | Small claims |
Where to start
- If you need to ask a customer to pay, or check how long you have to sue, read How to write a demand letter for an unpaid invoice.
- If you need to file a claim, pay the fee and serve the other side, read Small claims court for California businesses.
- If you need to know who can appear in court for your LLC or corporation, read Small claims court for California businesses.
Frequently asked questions
Do I have to send a demand letter before small claims court?
The small claims form expects it. Form SC-100 asks whether you asked the defendant to pay before you filed. If you didn't, you must explain why.
A written demand letter is the clearest way to show that you asked.
Can an LLC sue in small claims court in California?
Yes. An LLC or corporation can claim up to $6,250. It appears through a regular employee, officer or director who holds that role for reasons other than going to court. That person files a declaration saying they're authorized to appear.
Can a lawyer represent my business in small claims?
No. Lawyers can't take part in the hearing for you, though a lawyer can advise you before or after it. For debts above the small claims limit, you'd file a regular civil case instead: a limited civil case for $35,000 or less, or an unlimited civil case above that. A corporation or LLC generally must have a lawyer in either one.