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It would be rare that an officer of a corp or LLC wouild give a personal guarantee for routine work. If you're building a new building for them, that's another story.1 of 1 people found this helpful
You haven't mentioned the nature of your work. However if the type of serv ice you're providing lends itself to it, you may establish a policy of requiring a "Retainer" to apply toward the final bill. If you are providing lengthy service (for example, a service for three months), you could require intermediate payments.
Now, as to the deadbeat who didn't pay you, I suggest 3 steps (advising yout deadbeat client in advance that if payment is not made you will do the following). One...sue in small claims court. Two,...alert others in your field that the "client" is a deadbeat, and two spread the word by internet*.* However be certain that you state the FACTS ONLY, to avoid a law suit
Thank you for your advice. I am in the environmental drilling business and the proposed job is to be completed within two days. Unfortunately this type of business does not allow me to require a retainer. Other than what is stated above, what can I do to protect myself when an LLC refuses to pay and after hiring a lawyer you find out the LLC does not have any money and you cant go after the owner because it's an LLC?
IMHO you can (and should) require a deposit before you start drilling.
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I've done work for an LLC in which I was not paid and never will be. I was told that I should have had a personal guarentee signed by this client. I have been asked to put in a cost estimate to another potential client that is an LLC. I currently have the Cost Estimate signed by the person authorizing the work, title, and company name. When I'm unsure of the client I have them sign the pay sheet when the services are completed. What should I have an LLC sign and what should it say?