How to Check if a Company Is Legally Registered: Your Complete Guide
Evelyn Sanderson - October 15, 2024
When you want to work with a new company or individual, it’s important to check if they’re legally registered in the United States.
This is a simple process that allows you to determine if a company is meeting the necessary criteria for you to do business with them. Whether that’s specific licensing or registration with the government, it’s important to know that the company you’re working with is legitimate.
While it can be hard to find verification at times, don’t worry, because we’re here to help. Read on to learn more about how to check if a company is legally registered. We cover how you can find this information, why it’s relevant, and much more.
Do All Businesses Have to Be Registered?
Most businesses in the United States have to register with state and local governments to operate legally. This is especially true for LLCs and corporations, whereas sole proprietorships and freelancers can get away with not registering with the state.
So, if a company isn’t registered it doesn’t always mean that they’re not legitimate. This should only raise a red flag if someone is claiming to be from a major corporation but you can’t find any record of it.
It’s also important to note that businesses in heavily regulated industries may have to maintain additional licenses and federal registrations to operate properly.
What Is a Business Registration Check?
You can think of a business registration check as something like a background check but for LLCs and corporations.
Legal entities have to register with state, local, and federal governments to ensure that they’re compliant. This is important because they may need a license, permit, or additional documentation to operate legally in their line of work, and legal registration is not something you want to mess around with.
Companies that aren’t registered may be liable for damages, unable to get insurance, and unable to open the appropriate bank accounts for business. Additionally, companies that aren’t registered can impact individuals or companies that are registered, so it’s important to check before you begin working with them to avoid any problems.
Unfortunately, failing to check can result in you becoming liable if any issues arise.
Why It’s Important to Check if a Company Is Legally Registered
Checking to see if a company is legally registered is important for a plethora of reasons. Not only can it help you determine if a company is legitimate, but it can also help you determine if you should work with a company.
In fact, working with non-compliant companies may result in financial problems and liabilities that come back to bite you. Learn more about why it’s important to check if a company is legally registered below.
Making Sure the Business Is Legitimate
Businesses do a lot to appear legitimate. They may host a website or come up with great marketing campaigns on social media and other platforms. While this can help a company appear more legitimate, it often doesn’t mean anything unless you dig deeper.
When you want to learn about the legitimacy of a business the best way to do so is to check to see if it’s registered. Legal entities that aren’t registered are not legitimate, at least not in the eyes of state and federal governments. Therefore, you may not want to work for them.
We also recommend checking an individual’s background and registration if they call you claiming to be from a big company. The last thing you want is to fall victim to a catfish scam.
Avoiding Any Legal Liabilities
The most important reason to check if a company is legally registered is to avoid legal liabilities. Most businesses have to register with state, local, and the federal government, or else they’re liable for fines and penalties.
While that’s not great for the company, it’s also not great for your business if you do business with them. This is because you can be on the hook for fines and penalties if you’re not careful.
A great example of this is working with someone who has to register with Florida’s Agency for Healthcare Administration (AHCA). If someone isn’t registered or fails an AHCA background check, it can result in financial problems and liabilities for your business.
Checking a Business’s Fiscal Viability
When a company forms an LLC or another legal entity, it functions as a shield for liability and allows companies to open business bank accounts.
If you want to work with a fiscally responsible company, the company needs to have access to these liability protections and accounts. In fact, it will also help with insurance, special protections based on the industry, and much more.
Companies that don’t have the proper documentation might not be eligible for these perks, which will make them less than ideal to work with.
How to Check to See if a Company Is Registered
When you want to check to see if a company is registered you have a few options. You can check state databases, use third-party online search tools, or even check with Google. Asking someone who works for the company is also a good way to find out if it’s registered, but people might not always be forthcoming with that information.
Learn more about how to check to see if a company is registered below.
Secretary of State Offices
The easiest way to check to see if a company is registered is to check the secretary of state’s websites in the region where the company is headquartered. For example, if a company is registered in California, you’ll want to check with the secretary of state there and find a record of the company’s registration.
While you previously had to visit the office in person, this is no longer the case. Most secretary of state offices have online websites. These websites function as databases that you can use to find records of a company’s registration.
This is also true for federal databases, so you can similarly check federal registrations as well.
SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR)
EDGAR is a great tool you can leverage if you’re interested in learning more about a company’s registration. However, this only works for companies that are big enough to be listed on public stock exchanges.
That said, most major corporations in the United States are registered or traded on public exchanges, so it’s possible to find the company you’re looking for in the database. To run the search, you’ll need to know the company’s abbreviation name for the exchange, which is known as the ticker.
The only drawback is that most LLCs, LLPs, and other small businesses might not show up on the list. Instead, you’ll have to use third-party tools or visit specific state databases.
Information.com
When you want to learn more about a company’s legitimacy, Information.com is always one of the best options. It’s a simple tool to use and only requires a phone number, address, or name to get started. It works on physical storefronts, call centers, and people, so you have plenty of tools to help you verify someone’s information.
In fact, we always recommend using our background check tool if you plan on working with a freelancer or contractor who claims to be registered with the state. When you enter their information into our tool we can help you find all available public records. This includes:
- Full name
- Address
- Email address
- Social media accounts
- Dating profiles
- Work history
- Education records
- Driving records
- Financial records
- Criminal records
- Status on government exclusion lists
- Civil court records
- Sex offender status
- Phone numbers
Ultimately, if there’s a record of it, there’s a good chance that you can find it online using our people search tools. This also works for businesses, but you’ll need an address or phone number instead.
Check to See if a Company Is Registered Today
Checking to see if a company is registered is very important. Not only does it indicate that the company is legitimate, but some businesses may need certain registrations and licenses with state, local, or federal governments to remain compliant. Unfortunately, you can end up working with a non-compliant company and get into trouble if you don’t check.
The good news is that the tools we covered in this article will help you verify a company’s legitimacy. Furthermore, you can use these methods to check all companies, and even individuals. Any of our people search tools will help you learn more about specific members of a company, which is helpful if you need to verify licenses for specific people.
While checking to see if a company is registered is important, it’s not the only step you should take before working with someone. We also recommend running a comprehensive background check to ensure that an entity or individual is up to your standards.
