How to Check a Business Before Sending Money
Before sending money to any business — whether for a service, a product, or in response to a request — verifying that the business is registered, licensed where required, and that the person contacting you is genuinely authorized to act for them can help you identify verification gaps before it is too late.
Risk Signals to Look For
- !The business cannot be found in your state's Secretary of State registry, a relevant professional licensing database, or through a general search with its claimed location.
- !The business has no verifiable physical address — the address given leads to a mailbox service, a vacant lot, or simply cannot be matched to any real location.
- !When you search the business name and location together, you find complaints, scam alerts, or no results at all.
- !The person contacting you cannot provide basic verifiable details about the business — such as a license number, a registration date, or publicly listed contact information.
- !The business is asking you to pay in a way that bypasses normal channels — such as wire transfer to a personal account, gift cards, or cryptocurrency.
Steps to Verify the Business
- 1Search the state business registry: Look up the business in your state's Secretary of State business registry. If it claims to be registered in another state, search that state's registry as well. Unregistered businesses operating in your state may be a verification gap worth investigating.
- 2Check the Better Business Bureau: Search the business name at bbb.org for ratings, accreditation status, and any filed complaints. Look at how complaints were resolved as well as the overall pattern.
- 3Check professional licensing databases: For financial advisers or brokers, check FINRA BrokerCheck (brokercheck.finra.org). For investment advisers, check the SEC's IAPD (adviserinfo.sec.gov). For insurance agents, check your state's insurance commissioner's website.
- 4Verify the physical address independently: Type the address into a mapping service and check whether a real business with the claimed name operates there. A mailbox service or empty lot where a professional office is claimed may be a verification gap.
- 5Call using a number you find independently: Call the business using a phone number from their official website or an independently sourced directory — not the number the person gave you — and ask to speak with someone who can confirm the request you received.
Frequently Asked Questions
Can a business be registered and still be involved in fraud?
Yes. A business registration confirms that a company filed paperwork with the state — it does not verify the company's practices, reputation, or whether the person contacting you is authorized to act for it. Registration is one checkpoint, not a complete verification. Checking for complaints, confirming licensing, and speaking with a known representative are all additional steps worth taking.
What is the Secretary of State business registry?
Every U.S. state has a public database of businesses registered in that state, usually maintained by the Secretary of State's office. You can search for a company name to see when it was registered, whether it is currently in good standing, and who the registered agent is. If a business claims to be incorporated but doesn't appear in the registry, that is a verification gap worth investigating.
What should I do if I cannot independently verify the business?
Pause before sending money or signing anything. Do not act on urgency created by the other party. If the business is legitimate and the request is genuine, they will be able to provide verifiable details and will not object to a reasonable delay while you check. If they resist verification or pressure you to act immediately, that pressure itself may be a risk signal.
Can VerifyBefore help me check a business-related document?
Yes. If you have received a contract, invoice, agreement, or letter from a business you want to verify, you can upload it to VerifyBefore. The review will identify risk signals — such as unverifiable company claims, unusual payment instructions, and pressure language — and give you a plain-English summary of verification gaps to investigate.
Received a Request From a Business You Want to Verify?
Upload the document to VerifyBefore. We'll check for risk signals and company verification gaps — free, before you send any money.
Check a Document FreeDisclaimer: VerifyBefore identifies risk signals and verification gaps in documents and messages. It does not prove fraud, verify document authenticity, or confirm whether a company is legitimate. It is not legal, financial, or professional advice. Always contact official sources and speak with someone you trust before taking action.