SueEasy - A LegalForce Law Firm

Small business lawsuit

Is your business being sued by a landlord or vendor in California? Here's how to answer it in time

If you don't respond within 30 days, the court can enter a default judgment against your business. SueEasy helps you get your answer prepared and filed on time, plans starting at $199.

Respond to a lawsuit
Sue, your SueEasy AI case assistant: “Hi, I’m Sue. I’m your AI case assistant, and I’m here to help.”

What's at stake

What happens if your business doesn't respond in time

30 days, then a default judgment

Whether it's a landlord suing over back rent or a vendor lawsuit over an unpaid invoice, your business has 30 days to respond, starting when your registered agent is served, not when the papers reach you. Miss it, and the court can enter judgment automatically.

It keeps growing

A judgment collects 10% interest every year, and can be renewed after that. The longer it sits, the more it costs your business.

Personal assets can be at risk

If you signed a personal guarantee, or didn't keep business and personal finances properly separate, a judgment can reach beyond the company to your own accounts and property.

Check for a personal guarantee before anything else

A personal guarantee is a clause where you agree to personally cover a business debt if the company can't. It's often buried in a credit application rather than the main lease or contract, and it changes your whole strategy, so find it before deciding how to respond.

Respond to a lawsuit

Business lawsuit pricing

What it costs to answer a business lawsuit

Prepare

$0

Start free, see everything before you pay

  • Full guided intake
  • Contract terms and guarantee checked
  • Defenses that may apply to your case
  • Draft answer preview
Respond to a lawsuit
Priced by case size, set automatically

File it yourself

$199–$1,299

Priced by how much is at stake in your case

  • Amount claimed under $12,500: $199
  • Amount claimed $12,500–$35,000: $699
  • Amount claimed over $35,000: $1,299
  • Complete answer, ready to file
  • Court fee collected in one checkout
Respond to a lawsuit
Add-on

Add attorney review

+$1,000–$1,500

Extra confidence, priced by case size

  • Everything in File it yourself
  • Licensed CA attorney review
  • Revisions before filing
  • Attorney files on your behalf
Add an attorney

Preview everything for free. You only pay to unlock the finished filing package, and the government filing fee is collected in the same checkout.

How it works

How to answer a lawsuit from your landlord or vendor in California

Respond to a lawsuit

Tell us what's going on

A few quick questions: who's suing your business, how you were served, and whether you signed a personal guarantee. Then we pin down exactly how much time is left, since the clock starts when your registered agent is served, not when the papers actually reach you.

  • 30 calendar days from when your registered agent is served
  • An old or unused registered agent can mean the clock is already running without your knowledge
  • Substituted service on an employee can still start the clock, worth confirming it was done properly
  • Already past it? Check whether a default has actually been entered before assuming it's too late

We check your best response

An answer isn't your only option, and picking the wrong one can waste an argument. A "demurrer" challenges whether the complaint holds up legally at all, even if everything in it were true. A "motion to strike" removes specific improper parts of it rather than the whole thing. Most of these disputes are filed as a limited civil complaint, since business and commercial claims here commonly fall between $12,500 and $35,000. We help you figure out which response fits, and whether your business has its own claim, called a cross-complaint, worth filing back in the same case.

You file before the deadline

We prepare the response that fits your facts, filed on time so a default doesn't happen. That buys the time before a settlement conference or trial to negotiate, find a lawyer if personal assets are genuinely at risk, or work out a payment plan.

Before you file

Check for a personal guarantee before you respond

Whether a judgment can reach beyond your business depends on a few specific facts. Worth checking before you decide how to respond.

Signs personal assets could be at risk

  • You signed a personal guarantee on the lease or a credit application
  • Business and personal accounts weren't kept properly separate
  • The plaintiff is suing you personally, not just the business
  • The contract has an attorney fees clause that could expand what's owed

What we check before you respond

  • Whether a personal guarantee exists, and its exact scope
  • Whether your business has a cross-complaint worth filing back
  • Whether venue, service, or the amount claimed can be challenged
  • Which response actually fits: answer, demurrer, or motion to strike
Respond to a lawsuit

If you lose

What a judgment against your business actually looks like

It grows every year

The court can order you to pay the full amount claimed. That amount adds 10% interest a year, for up to 10 years, and can be renewed.

Business assets are exposed first

A bank levy on business accounts, or a lien on business property, becomes straightforward for the other side once judgment is entered.

Personal assets, only with a guarantee

Without a signed guarantee or improperly mixed finances, only the business is exposed. With one, a judgment can reach your own accounts and property too.

FAQs

Business sued by a landlord or vendor, your questions answered

How long does my business actually have to respond after being sued?
Thirty days from when your registered agent is served, not from when the paperwork physically reaches you. If your registered agent is an old accountant or a service company you've since stopped using, that clock may already be running without your knowledge, so check your Secretary of State filing and update your agent now if it's out of date.
Can I represent my own LLC or corporation in this lawsuit myself?
Generally no. California requires corporations and LLCs to appear through a licensed attorney in superior court, unlike small claims where an officer or employee can appear directly. This is the main reason document preparation services stop at filing your answer rather than representing you at hearings.
If I can't represent my business myself, what does paying for help with my answer actually get me?
A properly prepared, timely-filed answer that prevents a default judgment from being entered, plus an assessment of whether your business has its own claim worth filing back. It buys time to find and afford an attorney or to negotiate, it doesn't put anyone in the courtroom with you.
Does the contract at issue have an attorney fees clause, and why does that matter?
Check the lease or vendor agreement now, before anything else. Most commercial leases and supply agreements include one, and California law makes these clauses reciprocal by statute even when written to favor only one side. A $24,000 claim with a fee clause attached can turn into a much larger exposure, but it cuts both ways, meaning you'd recover your own fees too if you win.
Could I be held personally liable for a debt that's technically my business's?
Only if you personally guaranteed it, or if the other side can show your business wasn't properly kept separate from your personal finances. Check the lease and any credit application you signed when opening the account, since personal guarantees are often buried inside credit applications and business owners frequently discover theirs only once they're being sued.
Should I notify my business insurer even if I doubt this is covered?
Yes, always, even when a denial seems likely. Notifying late can void coverage that might otherwise have applied, and the coverage question isn't always obvious. A claim framed around negligent work rather than a straightforward contract breach can sometimes trigger a duty to defend, so send the complaint to your broker the same day you receive it.
What is a cross-complaint, and should my business file one?
It's your business's own claim against the party suing you, filed within the same lawsuit rather than as a separate case. If a supplier delivered late and cost you a customer, or a landlord failed to make repairs and you lost trading days as a result, that becomes your cross-complaint. If it arises from the same transaction, it generally must be filed alongside your answer or it's lost for good.
Can the person suing my business freeze our bank account before this is resolved?
Not in the ordinary case before judgment. California allows prejudgment attachment for commercial claims, but it requires a separate court application and isn't common at this claim size. Once judgment is actually entered, a bank levy on business accounts becomes straightforward for the other side.
My business has already shut down, do I still need to respond to this lawsuit?
Yes. A dissolved business entity can still be sued, and a default judgment against it can create real problems, including exposure for money already distributed to owners before creditors were paid, or liability that follows into a successor business. Closing the business doesn't make the case disappear.
At what point should I stop trying to handle this myself and hire a litigator instead?
When the amount claimed is substantial relative to what you can afford to litigate, when there's an attorney fees clause in the contract, when a personal guarantee is involved, or when the underlying facts are genuinely disputed rather than a simple unpaid balance. If two or more of those apply, a litigator's retainer is usually cheaper than the risk of handling it alone.

SueEasy is a self-help legal technology product built by LegalForce RAPC Worldwide, P.C. Using SueEasy does not create an attorney-client relationship and does not provide legal advice. Check your county's court self-help center before paying anyone, many run debt defense clinics at no cost.