To verify that a business is real, run its name through the Secretary of State’s registration database in the state where it claims to be formed, confirm its physical address and contact details independently, check any licensing board that governs its industry, and cross-reference it against the federal databases that fit the situation (SEC EDGAR for public companies, SAM.gov for government contractors, the IRS Tax Exempt Organization Search for nonprofits). No single check settles it. Legitimate companies leave a trail across several of these systems; fraudulent ones usually fail two or three of the same checks in a row.
Work through the layers below in the order that matches what the company claims to be. A local contractor deserves a licensing board check more than an EDGAR search; a company pitching itself as publicly traded deserves the opposite.
Start With the Secretary of State
Every state’s Secretary of State (or equivalent office) keeps a free, searchable database of registered corporations, LLCs, and other entities. A company that claims to be incorporated but doesn’t appear in any state database has a serious credibility problem.
These databases pull from the formation documents a business must file to legally exist as a separate entity. Corporations file Articles of Incorporation; LLCs file a Certificate of Formation or Certificate of Organization, depending on the state. The public record shows the entity’s legal name, formation date, and the registered agent designated to accept legal documents.
Check the entity’s status. “Active” or “In Good Standing” means the company has kept up with required filings and fees. “Dissolved,” “Inactive,” or “Delinquent” means it has either shut down or missed its obligations. Annual report fees vary from $0 in some states to over $500 in others, so a lapsed filing isn’t automatic proof of fraud. It does mean the company may currently lack the legal authority to do business under that name.
When the Storefront Name Doesn’t Match
Many legitimate companies operate under a trade name that doesn’t match their legal name. A restaurant called “Harbor Grill” might be registered as “JMK Hospitality LLC.” If the storefront name doesn’t appear in the state database, look for a DBA (doing business as) or assumed name filing. Most states and counties maintain DBA registries linking the trade name back to the legal entity. If a company can’t produce documentation connecting its public name to a registered entity, that gap is worth questioning.
Verify the Address and Contact Details
A business that exists on paper and online but has no real physical footprint deserves extra scrutiny. Use a mapping tool with street-level imagery to see what actually sits at the listed address. A company claiming millions in revenue that operates from a strip-mall mailbox suite or a residential address isn’t necessarily fraudulent, but it warrants a closer look.
One specific thing to watch for: addresses belonging to a Commercial Mail Receiving Agency, the industry term for private mailbox services like UPS Store locations. The U.S. Postal Service requires mail to these locations to include either a “PMB” (Private Mailbox) identifier or a “#” symbol followed by the box number; “Post Office Box” or “PO Box” cannot be used on the delivery line.1Postal Explorer. 285 Private Mailbox Addresses If a business address includes “PMB,” a “Suite” at a known mailbox provider, or “#” at a retail shipping store, you’re likely dealing with a virtual address rather than a staffed office.
Call the listed phone number. A legitimate business typically answers with its name, whether through a receptionist or an automated system with department extensions. A generic voicemail that never names the company, or a number that rings endlessly, suggests there’s no real operation behind the listing. Email the company too. A professional business responds from a domain that matches its website, not from a free webmail account.
Check the Licensing Board if the Industry Requires One
Certain industries require credentials before a business or individual can legally operate. Contractors, electricians, plumbers, attorneys, physicians, real estate agents, and financial advisors all need active licenses issued by state regulatory boards. These boards maintain public, searchable databases where you can confirm a license is current and check for disciplinary history.
A licensing search typically shows the license number, issue and expiration dates, current status, and any formal disciplinary actions such as fines, suspensions, or revocations. If someone claims to be a licensed contractor but doesn’t appear in the state board’s database, don’t hire them. Penalties for unlicensed practice vary by state but commonly include fines from a few hundred dollars up to $15,000 and potential jail time for repeat offenders. More importantly for you as the consumer, hiring an unlicensed practitioner often means losing the protections that licensing provides, including access to recovery funds and guaranteed insurance coverage.
Federal Databases That Match the Claim
State-level checks aren’t enough for larger transactions or partnerships. Several federal databases provide deeper verification, and all of them are free.
SEC EDGAR for Public Companies
Any company that sells stock to the public must file regular reports with the Securities and Exchange Commission. These filings are searchable through EDGAR, the SEC’s free electronic filing system.2U.S. Securities and Exchange Commission. About EDGAR Look up a company by name or ticker symbol and review its annual report (Form 10-K), which contains audited financial statements, information about leadership, risk disclosures, and details of ongoing legal proceedings.3U.S. Securities and Exchange Commission. Search Filings If someone claims their company is publicly traded and it doesn’t appear in EDGAR, that’s a dealbreaker.
Employer Identification Numbers
Most businesses that have employees, operate as a corporation or LLC, or file certain tax returns need an Employer Identification Number from the IRS.4Internal Revenue Service. Employer Identification Number This nine-digit number appears on invoices, contracts, W-9 forms, and other official documents. You can’t look up an EIN in a public database the way you can a business registration, but its presence on formal paperwork is a positive sign. A company that won’t provide its EIN during a legitimate transaction is worth questioning. You can also cross-reference the EIN against the company name on any W-9 they provide.
D-U-N-S Numbers
Dun & Bradstreet assigns a unique nine-digit D-U-N-S Number to businesses, used by other companies, financial institutions, and government agencies to evaluate creditworthiness and confirm the entity is active and recognized.5Dun & Bradstreet. Get a D-U-N-S Number Online A D-U-N-S Number tied to an established credit file suggests the business has been operating long enough to build a financial history. Federal government contractors are generally required to have one, so if a company claims government work, ask for the number and verify it.
SAM.gov for Government Contractors
The System for Award Management at SAM.gov is the federal government’s official database of entities authorized to do business with federal agencies. Any company that holds or bids on federal contracts must maintain an active registration. Search by business name or Unique Entity ID to check whether a registration is active or expired.6SAM.gov. Check Entity Status A company claiming government contracts with no SAM.gov registration, or one showing “Inactive,” is either misrepresenting its work or has let its registration lapse.
IRS Tax Exempt Organization Search
If a nonprofit asks for a donation and claims tax-exempt status, verify it. The IRS maintains a free Tax Exempt Organization Search that lets you confirm whether an organization is recognized as tax-exempt, whether its exemption has been revoked, and access its Form 990 filings, which disclose revenue, expenses, executive compensation, and program activities.7Internal Revenue Service. Tax Exempt Organization Search A charity that doesn’t appear in this database either hasn’t applied for tax-exempt status or has had it revoked. Either way, your donation isn’t tax-deductible, and the organization may not be what it claims.
Look at Lawsuits, Complaints, and Reviews
A registered business can still treat customers badly. Several public resources let you check the track record.
Federal Court Records Through PACER
The PACER Case Locator is a free-to-register search tool indexing federal district, bankruptcy, and appellate court cases nationwide. Search by party name to find out whether a business has been sued in federal court, filed for bankruptcy, or is involved in ongoing litigation.8PACER Case Locator. PACER Case Locator A single lawsuit or bankruptcy filing isn’t disqualifying, but a pattern of litigation from customers or former partners tells you something.
Better Business Bureau Profiles
The Better Business Bureau maintains profiles on millions of companies and assigns letter grades based on complaint history and responsiveness. The BBB is a private organization and its ratings aren’t a government seal of approval, but the complaint narratives are often more revealing than the grade itself. Reading how a business responds to specific disputes tells you whether the company engages with problems or ignores them. A company with dozens of unresolved complaints over several years is a different risk than one with a handful that were all addressed.
State Attorney General and CFPB
Most state attorneys general maintain consumer protection divisions that accept and track complaints against businesses. Some states offer searchable databases; others require you to contact the office directly. The Consumer Financial Protection Bureau also maintains a public Consumer Complaint Database specifically for financial products and services like loans, credit cards, and debt collection. These won’t cover every business, but for financial services and companies with a history of consumer disputes, they’re worth checking.
Online Reviews
Reviews alone don’t prove a business is real, but patterns can reveal problems fast. Check the Google Business Profile listing, which displays name, address, phone number, hours, and reviews in one place. Google periodically requires businesses to re-verify their details, so a completed, verified profile with years of reviews carries more weight than a bare listing created last month.
Look past the star rating and read the reviews. Warning signs include a sudden burst of five-star reviews with generic language, reviewers who have only ever reviewed that one business, or no reviews at all for a company that claims years of operation. Negative reviews can actually be reassuring if the business responds professionally, since it shows a real person managing the relationship. A company with zero online footprint anywhere is more concerning than one with a few complaints.
Read the Website, Don’t Rely on the Padlock
A polished website doesn’t equal a legitimate business, and some of the traditional trust markers people rely on are no longer reliable.
Checking how long a domain has been registered still helps. WHOIS lookup tools show the domain’s creation date, which you can compare against the company’s claimed history. A business that says it was founded in 2005 but registered its website three weeks ago deserves skepticism. WHOIS lookups are far less transparent than they used to be, though. After the European Union’s General Data Protection Regulation took effect in 2018, most registrars began redacting the registrant’s name, email, and contact information from public records. You’ll still see the domain creation date, expiration date, and registrar name, but not usually the owner. A hidden owner isn’t automatically suspicious; that’s now the default for most domains worldwide.
The SSL padlock icon in your browser bar means the connection between your device and the website is encrypted. It does not mean the business behind the site is legitimate. Free SSL certificates are available to anyone, and scam sites routinely use them. Treat the padlock as a baseline technical feature, not a trust signal.
Read the actual content instead. Scammers frequently copy text from legitimate competitors’ websites but forget to update the company name or contact details throughout. Check the “About Us,” “Terms and Conditions,” and “Privacy Policy” pages for inconsistencies: a different company name buried in the terms, a mailing address that doesn’t match the contact page, or broken links to social media. Placeholder text like “Lorem ipsum” or “[Insert Company Name]” is an obvious sign of a hastily assembled site. Searching a few unique sentences from the site in quotation marks can reveal whether the content was lifted from another business.
Verify Insurance and Bonds for Service Providers
For contractors, movers, and other service providers who work on your property or handle your belongings, confirming active insurance matters as much as confirming a license. Ask for a Certificate of Insurance, then verify it independently rather than taking the document at face value. Fraudulent certificates are common enough that the insurance industry has built tools specifically to combat them.
For workers’ compensation coverage, the National Council on Compensation Insurance offers a free online verification tool covering roughly 32 states. Enter the employer’s name or tax ID to see whether the policy is active. States not covered by that tool, including California and Florida, maintain their own separate systems. For general liability and other commercial insurance, call the insurance company listed on the certificate using a phone number you find independently, not one printed on the certificate. A legitimate insurer will confirm whether the policy is active and whether the coverage amounts match.
Watch How the Business Wants to Be Paid
Payment method reveals a lot about whether a business is operating in good faith. Legitimate companies offer standard methods that provide some buyer protection: credit cards, business checks, or established payment platforms. Be wary of any business that insists on wire transfers, cryptocurrency, gift cards, or cash-only transactions for significant amounts. Once sent, these are nearly impossible to reverse.
Watch for last-minute changes to payment instructions. A common scam involves intercepting email threads and sending a message that appears to come from the business, redirecting funds to a different bank account. If you receive any communication changing previously agreed payment details, verify it by calling the business at a number you’ve used before. Other warning signs: invoices with a different company name than the one you’ve been dealing with, pressure to pay before a “deadline” that wasn’t previously discussed, and requests for your banking credentials instead of a straightforward payment.
How to Weigh the Results
No single check is conclusive. A business can be registered with the state and still operate dishonestly, and a brand-new company with a thin online footprint can be perfectly legitimate. The value is in layering. A company that passes the Secretary of State search, has a verifiable physical address, maintains proper licensing for its industry, appears in the federal databases you’d expect, and has a reasonable complaint history is overwhelmingly likely to be real. A company that fails two or three of these checks might have an innocent explanation, but the burden is on them to provide it before you hand over money or personal information.