How do I collect money that is owed to my business?
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How do I collect money that is owed to my business?
I have a small team of telecallers. We were working for a company that hired us for doing telecalling on its behalf. We have worked for some time but right now it is not paying us. I have suffered a loss of $2500 and still have another $2200 to receive from them. I require your legal advice on this matter.
Asked on July 22, 2013 under Business Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
You would sue them for breach of contract (not honoring the agreement to pay you for work done) and/or for fraud (for having lied about paying you for the work). If they are an LLC or corporation, you would only sue the company; if it's a sole proprietorship or partnership (non-LLC), you could sue the owner(s) personally. If your company is an LLC or corporation, you will need an attorney, even for a small claims matter; if a sole proprietorship, you could represent yourself, if you wanted. For claims under the small claims threshhold in your state, you should sue in small claims court--it's cheaper, easier, and faster.
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