TLDR: To sue a business in Michigan, you first identify the exact legal entity using LARA's business entity search, send a demand letter (many disputes end there), then file in the right court: small claims for disputes up to $7,000, district court up to $25,000, circuit court above that, where business-versus-business cases can land in the specialized Business Court. You serve the company through its registered agent, not whoever answers the phone. Most claims carry a six-year deadline for breach of contract, but shorter deadlines apply to other claims, and suing a dissolved company or chasing an owner personally gets complicated fast. Most cases settle; the ones that resolve best are built properly from the demand letter forward.

When a business owes you money or broke its promises, the first discovery most people make is that suing a company is not the same as suing a person. Companies hide behind trade names, dissolve inconveniently, and get served through registered agents you have to find first. Get the mechanics wrong and a solid claim can die on procedure without a judge ever reaching the merits.

We litigate these cases for Metro Detroit businesses and individuals. Here is the process in the order it actually happens, with the mistakes that cost people their cases.

Before anything else, find out who you are actually suing. Search the business on LARA’s business entity search. The record gives you four things you need: the exact registered name, the entity type (LLC or corporation), whether it is active or dissolved, and the name and address of its registered agent.

The name matters more than people expect. The lawsuit must name the legal entity, and “Joe’s Plumbing” may legally be “JP Services Group LLC” doing business under an assumed name. Suing the trade name, or a person who turns out to be an employee, invites dismissal, and if the statute of limitations runs while you fix it, the mistake is permanent.

While you are in the record, note who signed your contract and how. A signature “individually” or a personal guarantee changes who you can pursue. A signature as “member” or “president” binds only the company.

Step 2: Send a Demand Letter

Most business disputes end without a lawsuit, and the demand letter is usually where. A letter from an attorney that states the claim, the amount, the deadline, and the intent to file gets read differently than an email from a frustrated customer or vendor. It also builds the record: when the case is filed, the letter shows the court you tried to resolve it.

Check your contract before sending anything. Two clauses change the playbook: an arbitration clause may route the dispute out of court entirely, and an attorney-fee provision may let the winner recover legal fees, which changes everyone’s settlement math. Michigan follows the American rule, where each side pays its own lawyers unless a contract or statute says otherwise.

Step 3: Pick the Right Court

Where you file is set by the amount in dispute:

  • Small claims: $7,000 or less. Fast, cheap, no attorneys on either side, no jury. The right venue for simple disputes where the paperwork tells the story.
  • District court: $25,000 or less. A full civil case with attorneys, filed in the district where the dispute arose. Our guides to the 19th District Court in Dearborn and the other Wayne County district courts cover what those courts handle.
  • Circuit court: over $25,000. Filed at the Wayne County Circuit Court for Wayne County disputes. Business-versus-business cases meeting the threshold are assigned to the specialized Business Court docket, with judges who handle commercial disputes all day.

The line between courts is not just procedural. Filing fees, timelines, discovery scope, and cost all scale up with the court, which is why the first strategic conversation in any business dispute is whether the claim justifies the forum.

Step 4: File and Serve the Registered Agent

The complaint gets filed with the court; then the company must be formally served. For Michigan entities, service typically goes to the registered agent listed on the LARA record, or to an officer or managing member. Handing papers to a cashier is not service, and defective service is one of the most common ways self-filed cases stall.

Out-of-state company? If it is registered to do business in Michigan, it has a Michigan registered agent you can serve. If it is not registered but did business here, Michigan’s long-arm statute usually still reaches it, with service made under the court rules for out-of-state defendants. It adds steps, not impossibility.

Step 5: The Case Itself, Briefly

After service, the company answers, and the case moves through discovery (documents, depositions), motions, and, for a small fraction of cases, trial. Most business cases settle, usually after discovery has shown both sides what the evidence actually looks like. The claims we see most: breach of contract, unpaid invoices and collections, defective work, and, between co-owners, breach of fiduciary duty, where a partner or manager put their own interests ahead of the company’s.

Two deadlines run through all of it. Breach of contract claims carry a six-year statute of limitations under MCL 600.5807. But many contracts legally shorten that window, sometimes to one year, and courts enforce those clauses. Read the contract before assuming time is on your side, and remember the clock keeps running while you negotiate.

What It Realistically Costs

A small claims filing costs well under $100 in fees and no attorney. A district or circuit court case involves filing fees in the low hundreds plus attorney time: a dispute that settles after a demand letter might run $2,500 to $10,000 in fees, while one that goes through discovery commonly reaches five figures. That math is why the demand letter stage matters and why an attorney-fee clause in your contract changes everything. An honest assessment up front (claim strength, collectability, cost to judgment) is worth more than a year of litigation pursued on principle.

Collectability deserves its own sentence: a judgment against a company with no assets is paper. Part of the initial workup is figuring out whether the defendant can actually pay before you spend money proving they should.

Frequently Asked Questions

Can I sue a business in small claims court in Michigan?

Yes, for disputes of $7,000 or less. Small claims is faster and cheaper than a full civil case, attorneys do not appear, and the business sends an owner or employee instead of a lawyer. The trade-off is that you give up the right to a jury and to most appeals. For straightforward disputes (an unpaid deposit, a botched repair, a refund) it is often the practical choice. Above $7,000, your case belongs in district court (up to $25,000) or circuit court.

How do I find out who to actually sue?

Search the company on LARA’s Michigan business entity search. It shows the exact registered name, whether the entity is an LLC or corporation, whether it is active or dissolved, and who its registered agent is. Sue the entity by its registered name, not the sign on the building; “Joe’s Plumbing” may legally be “JP Services Group LLC.” Naming the wrong defendant can get a case dismissed after the deadline to refile has passed.

What if the company has closed or dissolved?

You may still have options, but the path narrows. A dissolved LLC or corporation can generally still be sued for claims arising before dissolution, and recovery may come from remaining assets, insurance, or distributions made to owners during wind-down. If the business simply vanished without formally dissolving, the LARA record still identifies its resident agent and owners of record. This is a situation where an attorney earns their fee quickly, because collectability decides whether the case is worth filing at all.

Can I sue the owner personally instead of the company?

Usually not, and that is by design: LLCs and corporations exist to shield their owners. The exceptions are real but narrow: the owner personally guaranteed the debt, personally committed fraud, or ran the company as an extension of themselves (commingled funds, ignored formalities) such that a court will pierce the corporate veil. Michigan courts pierce reluctantly. If a personal guarantee exists in your paperwork, that is the cleaner path.

How long do I have to sue a business in Michigan?

For breach of contract, six years from the breach under MCL 600.5807. Other claims run shorter: three years for most injury and property damage claims, and some contracts legally shorten the window further; construction, insurance, and consumer contracts often contain one- or two-year suit limitation clauses that Michigan courts enforce. Read the contract before assuming you have years. The clock does not pause while you negotiate.

Do I need a lawyer to sue a company?

In small claims, no; attorneys are not allowed. In district and circuit court you may represent yourself as an individual, but the practical calculus changes: the business will likely have counsel, and procedure (service, discovery, motions) is where self-represented cases die. One wrinkle for business owners: if the plaintiff is your LLC or corporation rather than you personally, Michigan courts generally require the entity to appear through an attorney outside of small claims.

Conclusion

LegalSolv is a business law firm in Dearborn, Michigan. Our business attorneys represent small and mid-size companies across Metro Detroit in business formation, contracts, partnership disputes, and commercial litigation, in English and Arabic. Suing a business, and defending one that is being sued, is core work for our litigation practice, and we will tell you honestly at the first call whether your claim is worth the court it belongs in.

Ready to put this into practice? LegalSolv, PLLC was built for exactly this.