Guides · reviewed 2026-09-04

Small Claims Court for your small business

Legal information, not legal advice. Results depend on the facts of your case.

Legal information, not legal advice. This guide and our free tools give legal information. They do not give advice about your case. A licensed lawyer can give legal advice.

The answer

Small Claims Court is the main court for business debts up to $50,000. Even when you win, costs for a representative cannot pass 15% of the claim, except as a penalty. That cap is why many businesses run their own claims, with software or with help in parts.

Why businesses use this court

  • Invoice claims are claims for a fixed amount. With no Defence, the clerk can sign a default judgment.
  • An employee can provide legal services for the employer, including in Small Claims Court, without a licence.
  • Fees are set and small: $108 to file, $308 for a trial date.
  • Your contract interest rate applies if the customer agreed to it.

Sue in the right name

A corporation, a person, or a partnership must register a business name before it carries on business under that name. A business that uses an unregistered name cannot keep a court case about that business without leave of the court. Register the name first, or sue in your own name or the corporation's name.

The frequent-claimant level

After 10 claims already filed in the same office in one calendar year, each new claim costs $228 instead of $108. Trial dates rise to $403, and default judgment requests to $128. Read: the 10-claim fee rule.

Set up a simple collection process

  1. Put payment terms and an interest rate in every contract.
  2. Send the demand letter on a set schedule, for example 30 days after the due date: /demand-letter.
  3. File before invoices age. The 2-year clock runs on each unpaid invoice, in most cases.
  4. Use the exact legal name from your own records. Read: name the right defendant.
  5. Track every case deadline. The clerk dismisses a stalled case at its 2nd anniversary.
  6. Claim your fees in each case: the court can order the defendant to repay them.

Deadlines and fees

  • File a claim: $108, or $228 at the frequent level.
  • Defence window: 20 days; then a default judgment request is $94, or $128.
  • Garnishment: $144. Writ or examination: $68.

Common mistakes

  • Do not let invoices pass the 2-year mark.
  • You can put several unpaid invoices from one customer into one claim.
  • Do not ignore collectability. A judgment against an empty company gets you nothing.
  • Do not split one claim into 2 claims to fit under $50,000.

When to get a lawyer

Get legal advice when a customer disputes the work, or files a claim against you. Legal services provided by Mithril Law — Jonathan Kleiman, licensed Ontario lawyer.

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