Legal Question in Business Law in California

If you'll send me the name the "company" used, preferably what it used on its bank checks (banks usually won't open accounts without some proof), I'll do a search for it at no charge, no obligation. Send privately to my email, [email protected].

If they didn't formally create a company, then the people who were the "owners" are probably personally liable for the money owed to you.

You should make a complaint with the California Labor Commissioner, Wage & Hour Division. If you are, legally, employees and don't have a written contract, they can investigate your claim and collect the money for you. If the company was, in fact, not registered properly with the state, there are additional penalties that apply. If you fall under the legal definition of independent contractor (which may not actually apply in your case), then the Commissioner can't help you and you will need to go to small claims court. (Unless the amount of money involved is more than $7500 or so, hiring an attorney is probably not cost-effective.)

Either way, you are entitled to interest on the money owed, as well as wages. If you are forced to go the small claims route, you can name the owners as well as the company. A judgment is good for 10 years (and can be renewed) and gives you the ability to place a lien on any property the defendant owns.

The default business entity in California is sole proprietorship or partnership (depending on the number of owners) and applies where no formal paperwork has been filed. In those entity types, the individual owners are responsible for the liabilities of the business. Often, owners of a business have personal assets even if the business fails. Look at all your checks and see who issued the checks--and who signed them--and whether it was the same each time, to determine who to sue. If you don't have copies of the checks (which is always a good idea before cashing, just in case you need to sue), then look at the pay stubs. If they didn't give you pay stubs, which are legally required, there's an additional penalty for that.

On a side note, most business attorneys require proof of entity (usually a copy of the company's Articles of Incorporation or Organization) before they will permit their clients to sign a contract with an entity. If the entity is out of state and can't be confirmed via online means, some of us even require current certificates of good standing before entering into an agreement. While that doesn't protect you from wrongdoing, it does tell you the exact name and who to serve if you need to sue. It also facilitates checking up on the business.