Can You Sue a Business in Small Claims Court?

Yes, you can absolutely sue a business in small claims court — and it's often the most effective way to resolve disputes with companies that ignore complaints or refuse refunds.

To sue a business, you'll need its full legal name (not just the trade name). Check your state's business registry to find the registered name and address. For corporations and LLCs, you'll serve the registered agent rather than the owner personally.

Common types of business lawsuits in small claims court include: security deposit disputes with landlords, contractor disputes over incomplete or shoddy work, retail disputes over defective products or refused refunds, service businesses that failed to deliver what they promised, and insurance companies disputing small claims.

One important note: businesses are often subject to lower filing limits than individuals. In California, for example, individuals can sue for up to $12,500 but businesses max out at $6,250. Check your state's specific rules.

Businesses frequently don't show up to small claims hearings, especially for smaller amounts. When the defendant fails to appear, judges typically issue a default judgment in your favor. However, winning a judgment and actually collecting are two different things — large corporations have legal teams that may complicate collection.

For franchise disputes or large chain retailers, consider filing a complaint with your state attorney general alongside (or instead of) your small claims case — companies are often more responsive to regulatory pressure.