How to Check if a Business Is Legitimate (Free Official Sources)

Scams and shell companies are easy to spot once you know where to look. The good news: the records that prove a business is legitimate are public, free, and available online. You do not need a paid lookup site to check whether a company actually exists, who runs it, or whether it is in good standing.

Here is the step-by-step process professionals use before extending credit, signing a contract, or sending a deposit.

Step 1: Confirm the entity is registered with the Secretary of State

Every LLC and corporation in the United States must register with a state. That registration is public record. Go to the Secretary of State business entity search for the state where the company claims to be based and search the exact legal name.

You are checking three things: the entity status (it should read "Active" or "Good Standing"), the entity type and formation date, and the registered agent. A status of "Suspended," "Dissolved," "Revoked," or "Forfeited" is a serious red flag — a suspended entity often cannot legally enter into or enforce contracts. You can run this search for any state from the Searchadex business entity directory.

Step 2: Check the Better Business Bureau and online footprint

The Better Business Bureau (BBB) is not a government source, but it is a useful second signal. Look at the company's rating, how long the profile has existed, the volume and pattern of complaints, and how the business responded. A brand-new BBB profile for a company that claims decades of history is worth a second look.

Pair this with a basic web search. A legitimate operating business usually has a consistent address, phone number, and online presence that matches what it told you. Mismatched details are a warning sign.

Step 3: Verify any professional or business license

If the company provides licensed services — contracting, real estate, insurance, healthcare, financial advice — verify the license directly with the relevant state board. An unlicensed provider is both a legal and a financial risk, and an expired or suspended license shows up immediately on the official board's database. Use the Searchadex license lookup to find the right board for each profession and state.

Step 4: Search for UCC liens against the business

A UCC-1 financing statement is filed when a lender takes a security interest in a business's assets. Running a UCC lien search tells you whether the company already has creditors with a claim on its equipment, inventory, or receivables. Multiple blanket liens are not automatically disqualifying, but you should know they exist before you sign. Searchadex links to the official UCC filing portal for every state.

Step 5: Check federal exclusion lists if relevant

If you are dealing with a federal contractor or vendor, check the SAM.gov exclusions list to confirm the company is not debarred from federal contracts. This 30-second check is frequently skipped and occasionally decisive.

What legitimate looks like

A real, healthy business will show an active entity status, a verifiable registered agent, current licenses where required, an explainable lien history, and a consistent public footprint. When all of those line up, you can proceed with confidence. When one of them does not, slow down and ask questions.

Bonus: verifying compliance going forward

If you are forming or running a business yourself and want to make sure it stays in good standing — registered agent, annual reports, and license renewals handled in every state — Harbor Compliance is our recommended service for registered agent verification and ongoing compliance. Get a free compliance quote.

Searchadex links only to official government and verified sources. We do not charge for searches and do not resell your data.