Can you handle your business's lawsuit yourself in Texas, and where the line is

The rule in one paragraph

An individual may represent himself or herself in any Texas court. A business entity is different: in justice court, where small claims are capped at $20,000 under Texas Rule of Civil Procedure 500.1, an owner, officer, partner or employee who is not a lawyer may represent a corporation or LLC. In county and district court, Texas courts have long held that a corporation or other entity must appear through a licensed attorney. So the honest answer is that you can handle a small, simple claim yourself, and you need a lawyer for almost everything above that.

I have represented businesses and individuals in Texas disputes since 1995, and some of my most difficult cases started with an owner who tried to handle the early stages alone. That is not a criticism; it is a natural instinct. This guide explains where the line is, what you can safely do yourself, and when to stop. It is general information, and a licensed Texas attorney should review your specific situation.

Why a company is treated differently from you

The reason is legal rather than practical. A corporation, LLC or partnership is a separate legal person, and it can only act through people. Courts have reasoned that because an entity cannot appear for itself, someone must appear for it, and outside justice court that someone must be a licensed attorney. A Harris County civil court memorandum summarizing Texas law cites Rule 7 of the Texas Rules of Civil Procedure and a line of appellate decisions for this point.

There is one narrow exception worth knowing. The same memorandum notes that Texas courts have treated a non-attorney's filing of an answer for a corporation as enough to prevent a default judgment, but that the non-attorney cannot go on to represent the company in the case. If your company has been served and you cannot reach a lawyer before the deadline, that matters. It is a stopgap, not a strategy.

Owners of sole proprietorships are in a different position, because the business is not a separate entity. If you operate under your own name or an assumed name without forming a company, you are representing yourself, with all the risks that carries.

Justice court: where an owner can stand up alone

Justice courts handle small claims, debt claims and evictions, and the Texas State Law Library describes them as a more informal setting than the higher courts, which is why many parties appear without lawyers. Under Rule 500.1, a small claims case can seek no more than $20,000, excluding statutory interest and court costs but including attorney's fees. Under Rule 500.3, a corporation or other entity may be represented by an employee, owner, officer or partner who is not an attorney, or by an attorney.

For an unpaid invoice from a customer who simply refuses to pay, justice court can be a sensible place to go alone. Keep in mind that the loser can appeal. Under Rule 506.1, an appeal must be filed within 21 days after the judgment is signed, and Rule 506.3 provides that the case is then tried de novo in county court, meaning the whole case starts over as if the first trial had not happened. In county court, your company would need a lawyer.

Work an owner can safely do without a lawyer

Even when you will eventually need counsel, a lot of useful work is yours to do, and doing it well lowers the cost of any lawyer you hire later. The common thread is that these steps gather facts and keep options open without making statements or commitments that can be used against you.

• Pull together the contract, invoices, purchase orders and payment history
• Write a private, dated timeline of what happened while it is fresh
• Send a short, factual payment reminder that restates what is owed
• Preserve emails, texts and files related to the dispute, and delete nothing
• Check your insurance policies for coverage that might apply
• File a straightforward small claims case for a modest, well-documented debt

Preparing for a small claims hearing on your own

If you decide to handle a justice court case yourself, treat it as a short presentation of evidence, not a chance to vent. The judge wants to know what the agreement was, what you delivered, what was paid and what is still owed. Bring the documents that prove each step, organized in that order, with copies for the judge and the other side.

Know your numbers to the dollar and be ready to explain how you calculated them. If the other side claims your work was defective or late, bring whatever shows it was accepted: signed delivery tickets, approval emails, photos or a record of payments they made after the work was done. Witnesses who saw the work or the conversations should come in person. And remember that a justice court defendant served with your claim generally has a short time to answer; under Rule 502.5, the answer is due by the end of the 14th day after service, so watch the court's docket for the hearing setting.

• The signed contract, quote or written agreement
• Invoices and a payment ledger showing what is owed
• Proof of delivery or completion, such as signed tickets or photos
• Emails or texts where the customer approved the work or promised to pay
• Copies of everything for the judge and the other party
• A one-page summary of your claim and the amount requested

Where going it alone gets expensive

The problems I see most often are not about courtroom skill. They are about deadlines, documents and words. An owner served with a lawsuit treats it as a negotiation and misses the answer date, and the other side asks for a default judgment. An owner writes a long, angry email that becomes the other side's best exhibit. An owner files in the wrong court, or against the wrong entity, or sues for less than the claim is worth to stay under a limit and then cannot recover the rest.

Other mistakes are quieter. Participating in a lawsuit can sometimes waive a contract's arbitration clause. Texas Rule of Civil Procedure 97 requires certain counterclaims arising from the same transaction to be raised in the case, so leaving one out can forfeit it. Signing a settlement that does not include a proper release can leave the dispute half finished. None of these are obvious to someone who has not handled litigation, and each can cost more than the legal fees you saved.

Signals that it is time for a litigator

Some situations call for a lawyer from the first day. If any of these describe your matter, a consultation is worth far more than it costs, even if you end up handling part of the work yourself.

• Your company has been served with a lawsuit in county, district or federal court
• The amount at stake is above the small claims limit or would hurt the business
• The other side has a lawyer, or the claim involves fraud or fiduciary duty
• A non-compete, trade secret or trademark is involved
• A partner, co-owner or employee is on the other side
• You need a court order to stop something, not just money
• The contract has an arbitration, venue or attorney's fee clause

A middle path: targeted help from a lawyer

Hiring a litigator does not always mean handing over the whole matter. For a modest dispute, a single consultation can tell you whether your claim holds up, which court it belongs in and what the realistic outcome is. A lawyer can draft a demand letter that carries more weight than one from you, or review a settlement before you sign it. Some owners also ask a litigator to look over their evidence and outline before a justice court hearing, so that they walk in knowing which points matter and which arguments to leave out. That kind of preparation session is short, and it often decides whether the hearing goes smoothly.

Ask any lawyer whether they will help with a defined piece of the work and how that would be billed. My guide on what drives the cost of a business lawsuit explains the fee arrangements that make this kind of targeted help possible.

If your company has already been served

If the papers came from a county or district court, the clock is already running. Texas Rule of Civil Procedure 99 provides that the citation directs the defendant to file a written answer by 10:00 a.m. on the Monday next after the expiration of 20 days after service. Justice court citations set their own deadlines, so read yours closely. Either way, the response needs to be filed correctly and on time, and for a company outside justice court, that means through a lawyer.

My guide on what to do after a demand letter or lawsuit arrives walks through the first days in detail: what to preserve, what to gather and what not to say.

How I help owners make this call

Send me what you have, whether that is an unpaid invoice, a demand letter or a petition, and we talk by phone or at my downtown Dallas office. I tell you honestly whether the matter is one you can handle yourself, where it would be filed, what the risks are, and what my involvement would cost. Sometimes my advice is to file in justice court on your own, and I tell owners that when it is true.

If the dispute belongs in a higher court, I explain why in plain terms; my guide on which court hears a business lawsuit in Dallas lays out the options. If you engage me, the deadlines are handled first and the strategy is built around the outcome you want.

Questions people ask me