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March 08, 2010


Rich Steinhoff

Isn't another advantage of LLC over corporation is that LLC can be represented by manager in court where a corp must be represented by an attorney....doesn't this save $$ in, for example, landlord tenant eviction actions?

Tom Kerner

That's a good question, and it does come up a lot, particularly regarding Small Claims court. In Small Claims court in North Carolina, an owner or employee of any kind of company can appear on the company's behalf. It does not have to be an LLC. Credit unions typically send account managers to handle a batch of small loan defaults, for example. However, outside of Small Claims court, in District, Superior, or Federal Court, a person seeking to represent a separate legal entity such as an LLC, will be engaged in the "unauthorized practice of law", a misdemeanor, as well as grounds for being barred from presenting a case. Since summary ejectments are typically heard in Small Claims court, it does not matter whether your property management company (or the company owning the property at issue) is an LLC, corporation, or any other form of entity.

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