West Hollywood, CA asked in Small Claims and Business Law for California

Q: Do I sue the owner of the business I'm having problems with or sue the business itself which is registered as an LLC?

I want to get my spray tanning equipment back from a salon. Confused if I should sue the owner of the business or sue the business? Whichever one I sue do I list the other as a second defendant?

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2 Lawyer Answers
Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: Did this spray tanning salon employ you? Or did you just sell it some equipment as a third party vendor? Were you an employee when you sold it the equipment? You posted in employment law, which is usually reserved for employment questions. This is a question about a sale and financing. That would be "Contracts." Did the owner personally guarantee the payment on the purchase of the equipment from you? Often in financing commercial equipment the finance company requires a personal guarantee. If you have one then you sue everyone. If you are going in Small Claims, you might as well sue everyone anyway, in case there is a problem with the formation or maintenance of the LLC. You need to check the Secretary of State website to verify the status of the LLC, because if it is suspended, there is no LLC and you sue the individual.

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Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: I see you changed your category to be in "Business Law". This is a category that relates to questions about the form a business is operated in. Your question should be in "Contracts" because you are asking about who should be a defendant in a breach of contract lawsuit. The reason I bring this up is that the attorneys participating in "Ask a Lawyer" get emails when you post in a category you subscribe to. So you will get answers from an attorney that could help you in your situation, if you want that.

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