You are about to pay a deposit for work at your home, or send money to a company offering a professional service. The name on its website looks familiar, but that does not tell you whether the business is registered in the right state or holds the license its work may require. Checking those are separate steps, and both can help you understand who you are dealing with before you pay.
Act I: Find the right state record
Start with the state where the business is located and where it will do the work. Business rules are set state by state. The U.S. Small Business Administration says a business's location affects which taxes, zoning rules, and regulations apply. If a company is based in one state but will serve you in another, do not assume a registration in its home state covers work in yours. Check the relevant state requirements or ask the state office that handles business filings.
Before searching, write down the business name and address shown on its estimate, contract, invoice, or website. If those details differ, ask the company to explain. A business may use a public-facing name that differs from its legal name. That difference is not proof of a problem, but you will need the legal name to make a useful comparison in an official database.
Use the official entity search
Most state Secretaries of State, or equivalent offices, handle business entity filings. The National Association of Secretaries of State's corporate registration directory links to state resources. Use the official state search as the record to confirm against, rather than relying only on a general web search or a third-party directory. A third-party site may help you find the right state tool, but it is not the state record itself.
Search the exact legal name, then compare the result with the information the company gave you. Pay attention to the entity name and type, such as a corporation or limited liability company. If the company says it is registered in a particular state, look there. If it will operate in another state too, check that state's official business filing resources as well. Requirements can vary, so a result in one state does not settle what is required elsewhere.
A result is a useful starting point, not a complete report on the company. It does not by itself establish that a particular person is qualified to do the work, or that the business holds every permit or license that may apply. Do not treat a name appearing in a search as a substitute for checking the relevant licensing agency.
Act II: Check the permission to do the work
Business registration and professional or trade licensing are different things. The SBA describes registering a business and applying for licenses and permits as separate steps. A Secretary of State record can help establish that an entity has a filing on record, but it does not answer whether a business or worker is permitted to perform a particular service.
Some licenses are handled by an agency other than the Secretary of State. The right office depends on the type of work and the state. The sources available for this article do not provide a lookup process for a particular trade or profession, so do not assume that one general business search covers every credential. Ask which agency issued the license and use that agency's official information to check it.
It can help to ask the company direct, specific questions before sending payment:
- What is the legal business name on the contract, and is the company using a different public name or DBA?
- Which state office has the company's business filing?
- Does this work require a license or permit in the state where it will be done? If so, what is the license number and which agency issued it?
- Does the state require a separate filing with another office, such as a tax board?
A DBA, short for “doing business as,” is an assumed name used by a business. The SBA explains that an assumed name is distinct from the business's legal entity name and does not provide the same legal protection as an entity name. States differ on whether and where a DBA must be registered. So, if the contract name does not match the state record, ask whether it is a DBA and where that name can be verified.
Keep a record of what you checked
Save the company's written answers, the contract or estimate, and the official records you reviewed. Note the date and the state site or agency you used. This creates a simple record of the information you relied on if questions come up later. It is more useful than keeping a screenshot of an unrelated search result without noting which state database it came from.
The SBA's pages on choosing a business name and registering a business explain why names, assumed names, and registration are separate matters. Its guidance also notes that registration procedures vary by state. Use state and issuing-agency records for the specific business and work rather than assuming one rule applies everywhere.
Pause when details do not match
If you cannot match the company name to an official state entity record, ask for the legal name and an explanation before relying on the search result. A mismatch can have a straightforward explanation, such as a DBA, but it is still a gap to resolve. Likewise, if a company cannot tell you which agency issued a license it says it holds, contact the relevant state office to find the proper verification route.
Pressure to pay before you can check the registration or license is another reason to slow down and verify. That is a general caution, not a specific rule about every business or transaction. State Secretaries of State also provide information about business identity and scams through the NASS business services resources. If you remain unsure, the state's consumer protection office or the agency responsible for the type of license can point you to the appropriate official source.
Please seek a professional. This article is general information, not financial, tax or insurance advice. Please seek a licensed financial, tax or insurance professional about your own situation.
