Can I hold a business responsible for payment if owned by a mother company?
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Can I hold a business responsible for payment if owned by a mother company?
I have a window cleaning company. I was contacted by a local business to clean their windows. The business is owned and operated by a group and has filed bankruptcy, I have sent them legal notice
stating that the business hired me and not the mother company. The business remains open, do I have a case in small claims court?
Asked on September 7, 2017 under Business Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Is the business that hired you an LLC or corporation and, if so, is it not the same LLC or corporation as the mother company? If the answer is "yes," then that business is its own entity, is responsible for its own debts, and can be sued if it will not pay. However, if the business is not its own separate LLC or corporation, it is most likely part of the mother; and if so you can only proceed against the mother; but if the mother filed bankruptcy, you may not be able to recover anything.
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