California Small Claims Limit, Explained: How Much You Can Sue For and What to Do Next
Introduction: Why the California small claims limit matters
You hired a contractor, paid half up front, and they walked off the job. The invoice is $8,500, and you are fed up. Knowing the California small claims limit tells you whether you can file immediately in small claims court, avoid attorney fees, and get a faster judgment instead of wading into superior court.
This guide explains the california small claims limit in plain language, who can sue, where to file, and what evidence wins cases. You will get a checklist for filing, sample scripts to use in court, and practical tips for collecting a judgment so you actually get paid.
Quick answer, at a glance: The California small claims limits
Individuals can file a small claim in California for up to $10,000. Most businesses, including corporations, partnerships, and LLCs, are capped at $5,000. This is the core california small claims limit you need to know before you file.
Practical difference: if you personally are owed $8,500 for unpaid work, small claims is your tool. If your LLC is owed $8,500, you cannot use small claims, you must go to superior court. A sole proprietor using their personal name may qualify for the $10,000 cap, so check how the claim is titled.
Practical threshold: weigh court fees and time. For amounts under $500, consider a demand letter first. For $2,500 and up, small claims often makes sense, because the likely recovery justifies the effort.
Who qualifies as an individual or business for the limit
Simple rule first. If you sue in your own name, you are treated as an individual, and the california small claims limit for individuals applies. If you sue using a registered business name, or a legal entity such as an LLC, corporation, or partnership, the lower business limit applies.
Concrete examples. Jane Smith who sells crafts under her personal name can bring a claim as an individual, up to $10,000. Jane Smith Crafts LLC must sue as a business, so the cap is $5,000. A sole proprietorship that files a fictitious business name statement is usually still an individual for small claims, but a registered corporation is not.
Practical tips. Check your business registration before filing, bring formation documents to court, and decide whether to sue personally or through the entity. If your claim exceeds the applicable california small claims limit, file in superior court instead.
What you can sue for in small claims and common exceptions
Small claims court is for straightforward money disputes, generally under the california small claims limit. Common examples include withheld security deposits, unpaid contractor or repair bills, auto shop overcharges, property damage from a minor accident, refunds for returned merchandise, and small wage claims. Think simple facts and single damages figures.
There are important exceptions. Personal injury or medical bills that exceed the limit, complex contract disputes with multiple parties, estate and probate issues, family law, quiet title or real estate partition, class actions, and cases needing an injunction belong in superior court. Claims against a government agency usually require a prior government claim and special deadlines. If your case looks messy or the damages exceed the limit, file in superior court or get legal advice first.
When to use small claims versus regular civil court
Start with the money. The california small claims limit is $10,000 for individuals, businesses generally face a lower cap. If your claim is under the limit, small claims usually wins on cost and speed. Filing fees run as low as $30 to $75, you represent yourself, and you skip expensive discovery and lengthy motions.
Compare timelines. Small claims hearings typically happen in weeks to a few months, regular civil court can stretch many months or years, especially if depositions and expert reports are needed. Compare complexity. Small claims works best for straightforward unpaid invoices, security deposits, or damaged property. Complex contract disputes, fraud claims, or cases needing expert testimony belong in regular civil court.
Think about outcomes. Judgments are enforceable either way, but appeals and post judgment remedies differ. Rule of thumb, use small claims if the amount is under the california small claims limit and the case is simple; otherwise hire counsel and file in superior court.
How to prepare your claim, step by step
Start by double checking that your claim fits under the California small claims limit, then gather everything that proves the amount you will ask for. Use this checklist.
Calculate damages, item by item. Add unpaid invoices, repair estimates, lost wages, and any fees. Example, for unpaid contractor work include contract price, change orders, and final invoice with totals.
Collect documentary evidence. Bring contracts, receipts, bank statements, canceled checks, photos with timestamps, repair estimates, and screenshots of texts or emails that show promises or payments.
Line up witnesses. Get names, phone numbers, and a short written statement from anyone who saw the damage or transaction. Tell witnesses what to expect in court and bring extra copies of your statements.
Write a clear timeline. One page, dated events in order, with references to the documents that prove each event.
Check the statute of limitations now. Written contracts are usually four years, oral agreements two years, and property damage three years in California. File before these deadlines.
Prepare copies, proof of service, and a simple demand letter before filing.
How to file in California small claims court, simple filing steps
Start by completing form SC‑100, Plaintiff’s Claim and Order to Go to Small Claims Court. File it at the small claims division of the county courthouse where the defendant lives, does business, or where the dispute happened. Many counties allow in person filing, mail filing, or limited online filing, check your county court website first.
Expect filing fees in the neighborhood of $30 to $75 depending on the claim amount and whether the plaintiff is a business, plus service costs if you hire a process server or sheriff. You can request a fee waiver using form FW‑001 if you qualify.
Serve the defendant at least 15 days before the hearing if they live in the county, 20 days if elsewhere in California, 30 days if out of state. Service must be done by someone 18 or older who is not a party, or by the sheriff or a registered process server. File proof of service on form SC‑104 before the hearing.
Remember the california small claims limit, $10,000 for individuals and $5,000 for most businesses, when deciding how to proceed. Bring copies of all evidence and witnesses to the hearing.
What to expect at the hearing, and courtroom tips that win cases
Hearings are short and direct. Expect a single judge, the plaintiff to speak first, the defendant to respond, then brief rebuttals. Most courts give about five to twenty minutes per side, so plan a tight, chronological presentation. If you need more time ask the clerk well before your hearing.
Bring organized evidence, with originals and at least two copies. Label items as Exhibit 1, Exhibit 2, and hand copies to the judge and the other party before you start. Useful exhibits include receipts, invoices, photos with dates, and text message printouts. A one page timeline with dates and dollar amounts is worth more than ten minutes of talking.
Testimony tips that win cases: practice a 60 second opening that states the claim, the exact amount sought, and why it fits within the california small claims limit. Speak slowly, make eye contact with the judge, answer only the question asked, and avoid arguing with the other side. If you call witnesses, prep them to state short, factual points; no speeches. End by clearly asking for your amount and handing the judge the exhibit list.
After judgment, collecting and next steps
Get a certified copy of the judgment first, then choose a collection method based on the amount and where the debtor has assets. For cash in a bank, ask the clerk for a writ of execution and serve a bank levy. For wages, seek an earnings withholding order; wages are typically capped at 25 percent of disposable pay. To create a lien on real property, record an abstract of judgment with the county recorder. If the losing party refuses to pay, use a collection agency or hire an attorney to locate hidden assets, but weigh fees against the judgment size given the California small claims limit. Want to appeal, act fast, file a notice of appeal with the superior court within 30 days and follow local forms for a trial de novo.
Common mistakes to avoid and a one page checklist
The most common errors are simple and avoidable. People sue for more than the california small claims limit, use the wrong business name as defendant, skip a demand letter, or show up with unorganized evidence. Another frequent trap is missing the statute of limitations, then assuming you can file anyway.
Quick fixes that actually work: reduce your claim to the allowable amount, send a certified demand letter with a deadline, confirm the defendant is the correct legal entity, and staple exhibits in chronological order with a one page summary.
One page checklist before filing:
- Claim amount within the california small claims limit, usually $10,000 for individuals.
- Correct defendant name and address.
- Demand letter sent, with proof.
- Key evidence copied and summarized.
- Filing fee confirmed.
- Statute of limitations checked.
Conclusion and final insights
The bottom line, the California small claims limit matters because it dictates where to sue and how to prepare your case. If your case is under $10,000 and you are an individual, you can use small claims court, while corporations and other entities are generally limited to $5,000. Start by totaling damages, including any unpaid invoices or repair costs, then gather receipts, photos, contracts, and witness names. Before filing, send a clear demand letter and note the statute of limitations for your claim type. File in the county where the defendant lives or where the dispute occurred, use forms from the California Courts self help site, and check your county superior court for local rules and fee schedules. Visit the courthouse small claims advisor for hands on help.
