Indiana Small Claims Court: A Guide for Business Owners
Updated: Nov 4
Indiana small claims court handles civil claims of $10,000 or less. For a business owed money by a customer, client, or vendor, it can be a faster and less formal option than a regular lawsuit. But the rules for businesses are strict. Since January 1, 2025, a corporation or LLC must use a lawyer on claims over $6,000, and an owner or employee may appear only on smaller claims after the required paperwork is filed. Winning a judgment is also only the first step. If the other side does not pay, the business must take further steps to collect.
Key points
The small claims limit is $10,000 in the circuit and superior courts (IC 33-29-2-4) and in the Marion County township small claims courts (IC 33-34-3-2).
A business can file a larger claim in small claims court, but it gives up any amount over $10,000.
Under amended Small Claims Rule 8(C), a corporation or LLC may appear without a lawyer only on claims of $6,000 or less, and only through an owner or a properly designated full-time employee.
Hearings are informal, and the formal rules of evidence generally do not apply.
Collecting a judgment may require a separate collection process in the same court.
What cases can a business bring in small claims?
Common business claims include:
unpaid invoices for goods or services;
bounced checks;
unpaid rent and certain landlord-tenant matters;
small breach of contract claims; and
property damage claims.
Some cases cannot be filed in small claims, such as requests for an injunction. In Marion County, the township small claims courts also cannot hear certain matters, such as partition of real estate and most lien enforcement cases (IC 33-34-3-5).
If the amount owed is more than $10,000, a business can either file a regular civil lawsuit for the full amount or file in small claims and give up any amount over $10,000. Choosing the wrong path can leave money on the table.
Who can represent a business in small claims court?
The Indiana Supreme Court amended Small Claims Rule 8(C), effective January 1, 2025.
Corporations, LLCs, and LLPs:
Claims of $6,000 or less may be presented or defended by a lawyer, an owner, or a designated full-time employee.
Claims over $6,000 must be handled by a lawyer.
Sole proprietorships and partnerships:
Claims of $6,000 or less may be handled by the proprietor, a partner, an owner, a lawyer, or a designated full-time employee.
Claims over $6,000 must be handled by a lawyer, or by the proprietor, partner, or owner personally.
To use a designated employee, the business must file the required paperwork in each case. For an entity, this generally means a resolution authorizing the employee, a certificate of compliance, and an affidavit from the employee. By designating an employee, the business also gives up any amount over $6,000 on that claim. A party that bought or was assigned a debt must use a lawyer.
How does a small claims case work?
Send a demand first. Many disputes resolve after a clear written demand. See how to write a demand letter in Indiana.
Choose the right county. A claim is generally filed in the county where the transaction or obligation arose or was to be performed, or where the defendant lives or works.
File a notice of claim with the clerk and pay the filing and service fees. Fees vary by county, so check with the clerk.
Serve the defendant. The clerk arranges service, and the notice sets the hearing date.
Prepare your evidence. Bring the contract, invoices, payment history, emails or texts, photos, and witnesses. The hearing is informal, but you still must prove your claim.
Attend the hearing. A judge decides the case. By filing in small claims, the plaintiff gives up a jury trial, although a defendant may ask for one, which moves the case to the regular civil docket.
If the defendant does not appear, the court may enter a default judgment. If you are on the receiving end of one, our article on what happens after a default judgment in Indiana explains your options.
Common reasons business claims fall short
Suing the wrong party. The claim must name the correct legal person or entity, which may differ from a trade name.
Filing in the wrong county. Venue rules can lead to delay or dismissal.
Weak documentation. A missing contract, unsigned change order, or unclear invoice history can make a valid claim hard to prove.
Representation problems. An entity that appears through someone who is not allowed to represent it, or without the required paperwork, can run into trouble.
No collection plan. A judgment that is never collected does not help the business.
Collecting a small claims judgment
A judgment does not guarantee payment. If the defendant does not pay, the business can ask the court for proceedings supplemental. This is a court process in which the defendant must appear and answer questions about income and assets, and the court can order collection steps such as wage garnishment where allowed by law. Keep track of payments, deadlines, and court dates, because missed steps can delay collection.
Can you appeal a small claims judgment?
Yes. An appeal generally must be started within 30 days after the judgment by filing a notice of appeal under the Indiana Rules of Appellate Procedure.
Is small claims the right choice?
Small claims can work well for clear, documented claims of $10,000 or less. A regular civil case may be better when:
the amount owed is significantly more than $10,000;
the contract has an attorney fee clause, interest terms, or complex issues;
the business needs an injunction or other non-money relief; or
the other side is likely to file a counterclaim.
Frequently asked questions
What is the small claims limit in Indiana?
$10,000. A plaintiff with a larger claim can file in small claims only by giving up any amount over $10,000.
Can my office manager handle our LLC's small claims case?
Only on claims of $6,000 or less, only if the office manager is a full-time employee, and only after the LLC files the required designation paperwork in that case. Using an employee also means giving up any amount over $6,000. For claims over $6,000, an LLC must use a lawyer.
Do I need to send a demand letter before filing?
It is not always required, but it is often a good idea. A demand letter can resolve the dispute or create a clear record of what was owed and when.
How long does a small claims case take?
It depends on the county's docket, how quickly the defendant is served, and whether the defendant contests the claim or asks for a jury trial.
How Brinkley Law can help
Brinkley Law can help a business recover what it is owed, from the first demand to collection. We can:
review your contract, invoices, and records to assess the claim;
prepare and send a demand letter;
advise whether small claims or a regular civil case is the better fit;
identify the correct defendant and file in the proper county;
present the claim at the hearing and respond to any counterclaim or jury demand; and
pursue collection through proceedings supplemental when the other side does not pay.
Talk with Brinkley Law about money owed to your business
If a customer or vendor owes your Indiana business money, contact Brinkley Law before you file. You can schedule a consultation online or call 317-766-1379. Learn more about our business law services.
Brinkley Law, 8888 Keystone Crossing, Suite 1300, Indianapolis, Indiana 46240.
This article provides general information about Indiana law and is not legal advice. Reading it or contacting Brinkley Law does not create an attorney-client relationship. The application of the law depends on the facts of each matter.
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