If I’m a small business owner who works from home and am set up as an LLC, what can I do since I have a client who had failed to pay their bill?

UPDATED: May 8, 2015

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If I’m a small business owner who works from home and am set up as an LLC, what can I do since I have a client who had failed to pay their bill?

I have a client who is over 30 days late in payment with another invoice on the books (total of 2 invoices for $2,718.75). He acknowledged the first invoice as received via email and continued to email and phone after receipt. He has since (for 3 weeks now) not answered his phone or returned any emails. He is located in another state. What course of action, if any, do I have in order to receive payment for services rendered?

Asked on May 8, 2015 under Business Law, Tennessee


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

You can sue him for the money: it is breach of contract (even if it was just an oral agreement) to not pay for work done; it would also be unjust enrichment to take the benefit of the work you did (or product you supplied) without paying. Unfortunately, since he is in another state, you cannot file a small claims case--you would have to file a regular country court case. Since suing across state lines is always more complex than suing in-state, you are advised to retain an attorney to help you.



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