How to Check if a Company Is Fake or Legitimate

To check if a company is legitimate, run its name through the Secretary of State business registry in the state where it claims to be formed, confirm any industry-specific licenses it needs, and inspect its website, address, and email for signs the operation is real. Most of these checks are free, take minutes, and will separate a genuine business from an imitator before you send money or share personal information.

Collect the Company’s Identifiers First

Before you open any database, gather the details you’ll need to search cleanly. Vague searches return dozens of similar names and waste time.

  • Legal business name. This is the name filed with the state, which may differ from the marketing name. A company can also register a “Doing Business As” (DBA), but both names should trace back to the same filing.
  • Headquarters address. Usually in the website footer, privacy policy, or terms of service.
  • Registered agent. Every formally registered business must designate a person or company to receive legal documents on its behalf. This name appears in state filings.
  • Employer Identification Number (EIN). A nine-digit IRS number used for taxes, bank accounts, and contracts. You may see it on invoices or official documents.1Internal Revenue Service. Instructions for Form SS-4

One limitation to know up front: the IRS does not offer a public EIN lookup for for-profit businesses. Its only free lookup, the Tax Exempt Organization Search, covers nonprofits and charities.2Internal Revenue Service. Tax Exempt Organization Search If a for-profit gives you an EIN, you can cross-reference it against state filings or ask the business itself, but you cannot independently confirm it through the IRS.

Search the State Business Registry

Every state maintains a business registry, typically through the Secretary of State’s office, where companies file formation documents and annual reports. This is the single most reliable check that a business legally exists. Most registries offer free online searches; fees apply only if you request certified copies.

Search by business name using an “exact match” filter if the registry offers one. If nothing comes back, switch to “contains” in case the company registered under a slightly different legal name than the one it uses publicly. Open the entity details page and look at:

  • Status. “Active” or “Good Standing” means the company has met its filing obligations. “Dissolved,” “Revoked,” or “Forfeited” means it has shut down or lost its legal authority to operate. A company without active status has no legal standing to do business.
  • Date of incorporation. A company claiming decades of experience should not have been incorporated a few months ago.
  • Officers, members, and registered agent. Compare against the people you have actually been dealing with. Mismatches are a warning sign.
  • Business address. Should match the address the company gives you.

If you need formal proof of status for a contract or partnership, request a Certificate of Good Standing (sometimes called a Certificate of Status or Certificate of Existence) from the state of registration. Fees range from free to roughly $175 depending on the state and delivery method.

If the company claims to operate in a state other than where it was formed, check whether it has filed for foreign qualification there. Businesses formed in one state must register in each additional state where they conduct business, filing a certificate of authority and designating a local registered agent. A company that skipped this step is operating without authorization in that state.

Check EDGAR If the Company Says It’s Publicly Traded

If the company claims to be publicly traded, confirm it in the Securities and Exchange Commission’s EDGAR database, which provides free public access to filings from publicly traded companies.3U.S. Securities and Exchange Commission. Search Filings The SEC requires these companies to file annual reports (Form 10-K), quarterly reports (Form 10-Q), and other disclosures under the Securities Exchange Act of 1934.4Office of the Law Revision Counsel. 15 USC 78a – Short Title These filings reveal financial health, leadership, legal risks, and ownership. If a company says it is publicly traded but doesn’t appear in EDGAR, that’s a serious red flag.

Verify Industry-Specific Licenses

A company can be legally registered with the state and still lack the professional licenses it needs to operate in a regulated field. State registration alone isn’t enough when you’re dealing with financial services, healthcare, construction, or legal services.

Investment Firms and Brokers

Federal law requires securities associations to maintain a publicly accessible system for responding to inquiries about the registration and disciplinary history of their members.5Office of the Law Revision Counsel. 15 USC 78o-3 – Registered Securities Associations FINRA’s BrokerCheck is the free tool for looking up brokers and firms.6FINRA. BrokerCheck

Mortgage Lenders and Consumer Finance

Mortgage loan originators, mortgage companies, money services businesses, debt collectors, and many consumer finance companies are listed in the Nationwide Multistate Licensing System (NMLS). Search them for free through the NMLS Consumer Access portal, which shows licensing status, employment history, and publicly adjudicated disciplinary actions.7Nationwide Multistate Licensing System. Information About NMLS Consumer Access Every legitimate firm in these fields must display its NMLS ID on marketing materials and websites. If you cannot find the ID, or the number does not match any record in the portal, do not proceed with the transaction.

Doctors, Contractors, and Other Licensed Professions

Healthcare, construction, real estate, and legal services all require state-issued professional licenses, and each state maintains its own boards and online verification tools. State medical boards handle doctors and medical practitioners, sometimes through centralized services. For contractors, electricians, and other trades, the state licensing board or department of consumer affairs typically runs a searchable database. If a company or professional cannot produce a verifiable license number, treat that as a significant warning sign regardless of the industry.

Inspect the Website, Address, and Email

Scam companies often build convincing websites that mimic well-known brands. A few quick checks reveal whether the digital presence matches a real business.

  • Domain registration age. A WHOIS lookup (available through sites like whois.com) shows when a domain was first registered. A domain registered within the past few months that claims to represent an established company is a major red flag. Scammers frequently register new domains, run a fraud campaign, and abandon the site within weeks.
  • Address on a map. Search the listed address to see if it points to a commercial office, a residential home, a vacant lot, or a virtual mailbox storefront. A “corporate headquarters” at a UPS Store or shared mailbox warrants extra scrutiny.
  • Email domain. A legitimate company typically sends email from its own domain (name@companyname.com), not from Gmail or Yahoo. Be cautious even with branded-looking emails, since scammers can spoof legitimate domains. A misspelled domain or unusual subdomain is a sign to verify independently before responding.8Federal Trade Commission. Cybersecurity for Small Business – Email Authentication

If the Company Turns Out to Be Fake

Report It

Reports submitted to the FTC through ReportFraud.ftc.gov are entered into the Consumer Sentinel Network, a secure database shared with more than 2,800 law enforcement agencies worldwide.9Federal Trade Commission. ReportFraud.ftc.gov Consumer Sentinel isn’t public-facing, but the reports you file feed investigations into deceptive business practices.10Federal Trade Commission. Consumer Sentinel Network

For online scams, also file with the FBI’s Internet Crime Complaint Center (IC3). Include the scammer’s name, website, email, and any financial transaction details.11Internet Crime Complaint Center. Frequently Asked Questions Your state attorney general’s consumer protection division handles localized fraud complaints, and many accept reports online.

Try to Recover Your Money

If you already paid, act quickly. Your options depend on how you paid.12Federal Trade Commission. What To Do if You Were Scammed

  • Credit or debit card. Contact your card issuer, report the charge as fraudulent, and ask for a chargeback.
  • Bank wire transfer. Call your bank immediately and request a wire recall. Once funds are withdrawn on the other end, recovery becomes difficult.
  • Wire transfer service (Western Union, MoneyGram). Call the transfer company directly, report the fraudulent transfer, and ask them to reverse it.
  • Payment app (Venmo, Zelle, Cash App). Report the transaction as fraud through the app and contact your linked bank or card issuer to dispute the charge.
  • Cryptocurrency. Recovery is extremely difficult because crypto transactions are generally irreversible. Report to the IC3 and include any wallet addresses or transaction IDs.

Whatever the payment method, keep all original records: emails, receipts, screenshots, and correspondence. Investigators will ask for them.