Small Business In NC needing advice on debt collection

[jasonc0203]

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

I own a Lawn and Landscaping Business in N.C and I have two customers that our under 12 month maintenance contracts that have stopped paying there bills.
1. My first question is both customers are business owners and the contracts are written to the business name but signature is the business owners name. When I take them to small claims should I fall under the business name or the owners name?
2. One customer owes the last 4 months of a 12 month contract. The other has only been under contract for four months and payed the first month but has not payed the last three months. Should I sue for the whole remainder of the 12 month contract or stop all services and sue only for the last 3 months that have not been paid.

Thanks in advance,

 

[Dave1952]

It might be wise to see if the local Community College has a night course in business law. Go to the Sec of State site. It may have the "agent for service" of these businesses. Send your court papers to these addresses. Wouldn't hurt to send a copy to the owner. Sue for the work that you have actually done.

 

[latigo]

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

I own a Lawn and Landscaping Business in N.C and I have two customers that our under 12 month maintenance contracts that have stopped paying there bills.
1. My first question is both customers are business owners and the contracts are written to the business name but signature is the business owners name.
When I take them to small claims should I fall [sic] under the business name or the owners name?

2. One customer owes the last 4 months of a 12 month contract. The other has only been under contract for four months and payed [sic] the first month but has not payed the last three months. Should I sue for the whole remainder of the 12 month contract or stop all services and sue only for the last 3 months that have not been paid.

First, I dislike the use of the word "business" here. Its too generic as is your word "owners".

Businesses come in several styles or different structures: e. g., sole proprietorships (operating under a name linked to the proprietor); business partnerships, limited partnerships; business corporations, non-profit corporations and limited liability companies. With any of the above functioning under an assumed business name.

Now you may think you know who the owners are, but my guess is that you don't. And the only way you are going to determine the responsible party or parties to be named in your lawsuit is to do some researching of state and county records.

So, if you want to know how to go about it, I'll tell you.

Secondly, as to how much you should be suing for, my advice is to sue for the unpaid work already performed.

Because there is no way a small claims court is going to hear a lawsuit asking for damages based upon anticipatory breach of contract.

 

[jasonc0203]

First, I dislike the use of the word "business" here. Its too generic as is your word "owners".

Businesses come in several styles or different structures: e. g., sole proprietorships (operating under a name linked to the proprietor); business partnerships, limited partnerships; business corporations, non-profit corporations and limited liability companies. With any of the above functioning under an assumed business name.

Now you may think you know who the owners are, but my guess is that you don't. And the only way you are going to determine the responsible party or parties to be named in your lawsuit is to do some researching of state and county records.

So, if you want to know how to go about it, I'll tell you.

Secondly, as to how much you should be suing for, my advice is to sue for the unpaid work already performed.

Because there is no way a small claims court is going to hear a lawsuit asking for damages based upon anticipatory breach of contract.

Latigo,

Thanks for your response, as for " business " it is a LLC. Also can I not sue the person who signed the contract, maybe a dumb question but I no nothing when it comes to law. Also I would like to email over a cope of the contracts to anyone willing to take a look to better help me with this case,

Thanks in advance,

 

[TigerD]

Pass the accounts off to a collection agency and focus on growing your business.

DC

 

[threetime]

As a business owner and having this happen quite a few times, I found out turning these types of cases over to debt a collector is a complete waste of time. The only thing to do is sue in small claims court. You will win but have a hell of a time getting any money. Sad truth is, take it as a loss on your taxes and move on. It sucks, I know, but will happen again.

ThreeTime