Small claims help for small businesses

Freelancers, contractors, landscapers, photographers, small shops and landlords who are owed money but cannot afford a lawyer for a small amount.

A fixed fee per case, or a small monthly plan for repeat clients who send you several overdue accounts each month.

• Organizing records and timelines
• Clear business writing
• Professional, firm communication
• Basic bookkeeping knowledge

• Unauthorized practice of law: check with your state bar before offering anything beyond paperwork preparation
• Debt collection rules: charging a percentage of money recovered or contacting debtors may trigger collection agency licensing in some states. Check first
• Some states require registration or certification for legal document preparers
• Many small claims courts have dollar limits, and some restrict business plaintiffs, so check local rules
• General liability or professional liability (errors and omissions) insurance, a clear service contract, and no promises of winning or collecting

Estimates typically run around $500 to $3,000, depending on your setup, insurance and the tools you use. Insurance and a clear service contract are worth budgeting for from the start.

Estimated monthly revenue is typically around $800 to $4,000, depending on how many clients you take and your fees. Starting at about 10 hours a week is a realistic baseline.

Check with your state bar before offering anything beyond paperwork preparation. Also check whether charging a percentage of money recovered or contacting debtors triggers collection agency licensing, whether document preparers must register, and local small claims dollar limits.