Can a corporation sue in small claims court in California?

What the Law Says

California law explicitly prohibits corporations from acting as plaintiffs in small claims court.

Under California Code of Civil Procedure section 116.220, only natural persons (individuals), partnerships, and unincorporated associations may file lawsuits in small claims court. Corporations — including LLCs and other incorporated entities — are expressly excluded from suing in this forum.

However, corporations *can* be sued in small claims court, but their liability is capped at $6,250 per claim (half the individual limit). This reflects the policy that small claims court is designed for everyday people, not businesses seeking to litigate commercial disputes informally.

The $12,500 maximum claim amount applies only to natural persons and eligible unincorporated entities. Individuals are also limited to filing no more than three small claims actions per calendar year.

Statutory Text

A corporation or other entity may not be a plaintiff in a small claims action.

— Code of Civil Procedure, § 116.220 — Who may sue

Statutory Text

The maximum amount that may be claimed by a natural person is twelve thousand five hundred dollars ($12,500).

— Code of Civil Procedure, § 116.221(a) — Maximum claim amount

Statutory Text

The maximum amount that may be claimed against a corporation or other entity is six thousand two hundred fifty dollars ($6,250).

— Code of Civil Procedure, § 116.221(b) — Maximum claim against corporation

Sources