Sue for Unpaid Invoice in Small Claims Court New York

Which Court Depends on How You're Organized

Before you file, you need to answer one question: are you filing as an individual (sole proprietor) or as a business entity (LLC, corporation, partnership)?

If you're a sole proprietor — working under your own name or a registered "d/b/a" trade name — you file in the regular Small Claims Part, the same way any individual would. The monetary cap depends on which court tier has jurisdiction: $10,000 in NYC Civil Court, $5,000 in City Courts and District Courts, or $3,000 in Town and Village Justice Courts.

If you're organized as an LLC, corporation, association, or another formal business entity, you generally cannot file in the regular Small Claims Part. You must file in the Commercial Claims Part under Article 18-A of the applicable court act. A partnership in Nassau County District Court or Western Suffolk County District Court is an exception and may file in either part. Commercial claims have the same monetary caps as regular small claims, but they carry additional requirements: a $25 filing fee, a mandatory pre-filing demand letter using Form UCS-124 for consumer transactions, and a statewide limit of five commercial filings per calendar month.

The distinction trips up many freelancers. If you invoice clients through your LLC, you're filing a commercial claim — even if the work was a one-person freelance gig.

The Freelance Isn't Free Act — A Separate Path

New York's Freelance Isn't Free Act (originally enacted for NYC in 2017, expanded statewide in 2024) gives eligible freelancers a separate enforcement path. The state Act defines a freelancer to include a natural person or one-person organization hired for at least $800 in one contract or in contracts with the same hiring party aggregated over the preceding 120 days. It excludes construction contractors, sales representatives, lawyers, licensed medical professionals, and certain government hiring parties. Payment is due on the contract date or, if the contract does not specify a due date or how to determine it, within 30 days after the freelancer completes the services. A freelancer may file a complaint with the New York State Attorney General; the Department of Labor provides a model contract.

For a nonpayment violation, a prevailing freelancer is entitled to double damages, reasonable attorneys' fees, and costs. A prevailing freelancer on a written-contract violation is entitled to $250 in statutory damages; to prevail solely on that violation, the freelancer must have requested a written contract before work began. The Act also prohibits retaliation against freelancers who assert their rights.

The question is whether to file a complaint with the Attorney General under the Act or bring a private court action. Small claims court gives you a hearing date and a binding judgment if you win. For invoices under the small claims cap, many freelancers choose small claims court for the speed and simplicity. For larger amounts or serial nonpayers, the Freelance Isn't Free Act's remedies may make the separate path worth considering.

The Act also permits a private civil action based on the same facts as an Attorney General action. Consider how to coordinate those routes before proceeding.

Building Your Case

An unpaid invoice claim is a breach of contract case. Your evidence needs to prove three things: there was an agreement, you performed the work, and the client didn't pay.

The agreement. A written contract is strongest, but any documentation of the deal works: emails confirming the project scope and price, text messages agreeing to terms, a signed estimate or proposal, or even a pattern of prior invoices that were paid (establishing a course of dealing). Oral agreements are enforceable in New York, but they're harder to prove.

Proof of performance. Show that you completed the work: deliverables you sent (emails with attachments, file transfer receipts), project milestone sign-offs, the client's use of your work product (a published design, an installed fixture, a deployed website). If the client accepted partial delivery without objection, document that too.

The unpaid amount. Bring every invoice, including the original and any follow-ups. Show the payment terms and the date payment was due. If the client made partial payments, bring records of those so the judge can see exactly what remains outstanding.

The demand letter. Before filing, send a written demand letter giving the client a specific deadline to pay — typically 10 to 14 days. Keep a copy of the letter and proof of mailing (certified mail return receipt or delivery confirmation). A demand letter isn't legally required for individual small claims, but judges view it favorably as evidence that you tried to resolve the dispute before suing.

Filing and Serving

File in the court that has jurisdiction based on where the defendant lives, works, or maintains a business. If you're suing a company, check its service-of-process address through the NYS Department of State business entity search and confirm a physical address the clerk can use for notice.

The clerk handles service by certified mail and a duplicate first-class notice after you file. If certified mail is returned unclaimed or refused but the first-class notice is not returned, service is still treated as complete; NYC Civil Court and Town/Village Justice Court rules presume completion 21 days after mailing. If both are returned undeliverable, the clerk will tell you how to arrange personal service — see how to serve papers in small claims court for the full procedure.

The New York Small Claims Filing Guide covers the entire process from demand letter through judgment collection, with templates and checklists for freelancers and contractors pursuing unpaid invoices.

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