To sue or not, will it help me? me vs LLC

[lazercraft]

What is the name of your state (only U.S. law)? Georgia



In Jan I started doing video work for a guy( actually for an LLC), originally I was just going to do about 10-20 hrs of work, and agreed to be paid after the company was making income, which they told me would be in Mid-February. After a week, they asked if I wanted the majority of the project, and I agreed. So I worked from mid Jan to mid March, close to 40 hrs a week. I sent a weekly list of my hours so that they knew the total of my cost.

After a certain point I became locked in, kinda trapped into finishing, as I was making the product for them and they cant sell the product until I finish, which means I don't get paid till I finished. The date of them making income,- from their website launched kept getting pushed back. Originally Feb, then March, then April.

In March, I gave him the final deliverables and invoice.
They now owe me around 4,500.

The launch was in April, so I called to see how the payment plan will work out. I deliver another invoice and ask for a firm payment plan on paper so that I can hold him accountable to deadlines and amounts. I explained in writng that our original agreement was for payment to follow way back in January, and since that obviously wasnt that case I needed a new agreement.

He asked for 30 days, and in that time he would figure out a payment plan that would work for both of us. I agreed. (I was trying to keep everythign friendly and professional.)

Over a week ago,(30 days were up) I asked for the payment plan. He didnt have one nor can he make one because of lack of income. He explained they are adjusting their marketing strategy etc.

Im fairly livid, because he kept saying all along payment was basically a month away, and right now I cant even get him to pin down a payment plan.

My question is do I follow thru with small claims court?
He doesn't deny the LLC owes me the money, just claims they have no money to pay me. This may be true, I don't know. They dont really have any assets to speak of, but I would think they would have a line of credit at least. If it is true, Im not sure I have very much confidence they will ever turn much of a profit.
I even suggested he pay me with a credit card, I guess he either doesnt like that idea, or cant.

I should win in small claims no problem. But enforcing the judgment would leave me exactly where I am now, with perhaps the only good results being the money the LLC owes me would be on the company's credit report.

The project escalated from a little work to a lot, resulting in myself not being diligent about a solid payment or plan from the beginning.
I know I messed up that way, but I really hope this turns out to be more than just an expensive business lesson.

Ive been burned before, but for alot less money.
Why do people think they can not pay freelancers,
Any dealings of this kind before?
any advice would help.
thanksWhat is the name of your state (only U.S. law)?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Georgia



In Jan I started doing video work for a guy( actually for an LLC), originally I was just going to do about 10-20 hrs of work, and agreed to be paid after the company was making income, which they told me would be in Mid-February. After a week, they asked if I wanted the majority of the project, and I agreed. So I worked from mid Jan to mid March, close to 40 hrs a week. I sent a weekly list of my hours so that they knew the total of my cost.

After a certain point I became locked in, kinda trapped into finishing, as I was making the product for them and they cant sell the product until I finish, which means I don't get paid till I finished. The date of them making income,- from their website launched kept getting pushed back. Originally Feb, then March, then April.

In March, I gave him the final deliverables and invoice.
They now owe me around 4,500.

The launch was in April, so I called to see how the payment plan will work out. I deliver another invoice and ask for a firm payment plan on paper so that I can hold him accountable to deadlines and amounts. I explained in writng that our original agreement was for payment to follow way back in January, and since that obviously wasnt that case I needed a new agreement.

He asked for 30 days, and in that time he would figure out a payment plan that would work for both of us. I agreed. (I was trying to keep everythign friendly and professional.)

Over a week ago,(30 days were up) I asked for the payment plan. He didnt have one nor can he make one because of lack of income. He explained they are adjusting their marketing strategy etc.

Im fairly livid, because he kept saying all along payment was basically a month away, and right now I cant even get him to pin down a payment plan.

My question is do I follow thru with small claims court?
He doesn't deny the LLC owes me the money, just claims they have no money to pay me. This may be true, I don't know. They dont really have any assets to speak of, but I would think they would have a line of credit at least. If it is true, Im not sure I have very much confidence they will ever turn much of a profit.
I even suggested he pay me with a credit card, I guess he either doesnt like that idea, or cant.

I should win in small claims no problem. But enforcing the judgment would leave me exactly where I am now, with perhaps the only good results being the money the LLC owes me would be on the company's credit report.

The project escalated from a little work to a lot, resulting in myself not being diligent about a solid payment or plan from the beginning.
I know I messed up that way, but I really hope this turns out to be more than just an expensive business lesson.

Ive been burned before, but for alot less money.
Why do people think they can not pay freelancers,
Any dealings of this kind before?
any advice would help.
thanksWhat is the name of your state (only U.S. law)?

**A: do you have a written contract or evidence as to how much is owned and for what?

 

[Zigner]

What is the name of your state (only U.S. law)? Georgia



In Jan I started doing video work for a guy( actually for an LLC), originally I was just going to do about 10-20 hrs of work, and agreed to be paid after the company was making income, which they told me would be in Mid-February. After a week, they asked if I wanted the majority of the project, and I agreed. So I worked from mid Jan to mid March, close to 40 hrs a week. I sent a weekly list of my hours so that they knew the total of my cost.

After a certain point I became locked in, kinda trapped into finishing, as I was making the product for them and they cant sell the product until I finish, which means I don't get paid till I finished. The date of them making income,- from their website launched kept getting pushed back. Originally Feb, then March, then April.

In March, I gave him the final deliverables and invoice.
They now owe me around 4,500.

The launch was in April, so I called to see how the payment plan will work out. I deliver another invoice and ask for a firm payment plan on paper so that I can hold him accountable to deadlines and amounts. I explained in writng that our original agreement was for payment to follow way back in January, and since that obviously wasnt that case I needed a new agreement.

He asked for 30 days, and in that time he would figure out a payment plan that would work for both of us. I agreed. (I was trying to keep everythign friendly and professional.)

Over a week ago,(30 days were up) I asked for the payment plan. He didnt have one nor can he make one because of lack of income. He explained they are adjusting their marketing strategy etc.

Im fairly livid, because he kept saying all along payment was basically a month away, and right now I cant even get him to pin down a payment plan.

My question is do I follow thru with small claims court?
He doesn't deny the LLC owes me the money, just claims they have no money to pay me. This may be true, I don't know. They dont really have any assets to speak of, but I would think they would have a line of credit at least. If it is true, Im not sure I have very much confidence they will ever turn much of a profit.
I even suggested he pay me with a credit card, I guess he either doesnt like that idea, or cant.

I should win in small claims no problem. But enforcing the judgment would leave me exactly where I am now, with perhaps the only good results being the money the LLC owes me would be on the company's credit report.

The project escalated from a little work to a lot, resulting in myself not being diligent about a solid payment or plan from the beginning.
I know I messed up that way, but I really hope this turns out to be more than just an expensive business lesson.

Ive been burned before, but for alot less money.
Why do people think they can not pay freelancers,
Any dealings of this kind before?
any advice would help.
thanksWhat is the name of your state (only U.S. law)?

That's a very important point: "...and agreed to be paid after the company was making income"

If the company isn't making money then why should you be paid?

ETA: What you did is called Investing.

 

[lazercraft]

thanks a ton for the reply,

I have documentation of all the hours, amount owed and feedback from him during the entire thing.
I do not have any agreement of paper saying when I'll get paid what.

Im really after a payment plan, I would take really small increments over a long period of time if I had too, I trying to move for grad school, I took the job for that reason.

That agreement of getting paid once they have revenue, is it not contingent on time? The time period for that was broken 3 times by now.
I asked for a written agreement after all work was completed, I delivered it with another invoice, and he agreed he would have one in 30 days.
And then he says he has nothing, cant come up with one either.
So he broke that agreement deadline too.

Should I go through with the small claims?
or does this investment argument have me at the mercy of how well this company does?

thanks for the feedback,..even if its depressing,..

 

[Zigner]

thanks a ton for the reply,

I have documentation of all the hours, amount owed and feedback from him during the entire thing.
I do not have any agreement of paper saying when I'll get paid what.

Im really after a payment plan, I would take really small increments over a long period of time if I had too, I trying to move for grad school, I took the job for that reason.

That agreement of getting paid once they have revenue, is it not contingent on time? The time period for that was broken 3 times by now.
I asked for a written agreement after all work was completed, I delivered it with another invoice, and he agreed he would have one in 30 days.
And then he says he has nothing, cant come up with one either.
So he broke that agreement deadline too.

Should I go through with the small claims?
or does this investment argument have me at the mercy of how well this company does?

thanks for the feedback,..even if its depressing,..

Funny - you started with "income" and now that you've realized your error, you've switched to "revenue"

 

[HomeGuru]

Funny - you started with "income" and now that you've realized your error, you've switched to "revenue"

**A: aha, but they both mean the same thing; zero.

 

[lazercraft]

Yea, obviously this area is not my strong suit.
I just remember him referring to revenue, in a voicemail he left trying to explain himself. I guess thats my error?
He is quite persuasive talker, so Ive been making all communcation in email or mail recently.

 

[Zigner]

**A: aha, but they both mean the same thing; zero.

Generally, revenue would refer to the gross...income to the net.

 

[lazercraft]

Yea, well they dont have either yet.

The last phone conversation I had with him I was like " Our original agreement is void because the scale of work and the timeframe were both not accurate, they have both changed multiple times since then. I want something I can hold you accountable to since you have all the deliverables."

thats when he asked for a month, I thought that sounded fair.

and now nothing.
Should I proceed with small claims?
I just dont really know how judgment proof the LLC is.
If they have any credit lines, im sure they are trying to keep themselves afloat. grrrr. I busted my ass on that job.

 

[Zigner]

You cannot unilaterally change the original agreement. If they have no money, you get no money. In fact, that haven't even breached until they actually HAVE money and THEN fail to pay you.

 

[HomeGuru]

You cannot unilaterally change the original agreement. If they have no money, you get no money. In fact, that haven't even breached until they actually HAVE money and THEN fail to pay you.

**A: in other words, the OP gets no $$$$.

 

[lazercraft]

You cannot unilaterally change the original agreement. If they have no money, you get no money. In fact, that haven't even breached until they actually HAVE money and THEN fail to pay you.

ahh,
as much I dont want to hear it thanks for your input.

So I have this invoice with no way to force a date onto it?
So he can decide how much to pay me and when? (once he has money)
and I cant do anything?

Forgive my disbelief, but I honored my obligations, and all he gives me is question marks. I recognize that maybe he couldnt foresee rough waters with his business. But he was misleading with when payment would come and I just want some accountability.
A payment plan, something. ...Ill leave this forum alone now, Im as mad at myself for trusting this guy as I am with him.

 

[Zigner]

ahh,
as much I dont want to hear it thanks for your input.

So I have this invoice with no way to force a date onto it?
So he can decide how much to pay me and when? (once he has money)
and I cant do anything?

Forgive my disbelief, but I honored my obligations, and all he gives me is question marks. I recognize that maybe he couldnt foresee rough waters with his business. But he was misleading with when payment would come and I just want some accountability.
A payment plan, something. ...Ill leave this forum alone now, Im as mad at myself for trusting this guy as I am with him.

You INVESTED in this company with the hope of seeing a return when they had income. What else did you expect, really?