How to check if a business is legit: a 10-minute checklist

Searches for "is this company legit" have climbed sharply over the past year, and it's easy to see why: fake websites, look-alike businesses and scam text messages are everywhere. Most businesses are exactly what they say they are. These checks help you confirm that in about ten minutes, and spot the ones that aren't.

1. Does the business exist outside the ad or message?

Scams often live in one place only: a single ad, text, social post or website. Real businesses leave a trail.

• Search the business name, phone number and website separately. The same name, number and address should connect.
• Look it up on CheckThisBiz, where each listing shows its sources, whether its website loads securely, when its domain was registered, and whether the owner has verified it.
• Be wary if you can find nothing at all outside the message that reached you.

2. Is it registered with the state?

Most companies that operate as corporations or LLCs are registered with a state, usually through the Secretary of State's office, which offers a free online business search. Look for an active status and a name that matches. Our guide explains how to verify a business registration in your state. A sole proprietor may not appear there, so a missing record isn't proof of a scam on its own, but a company claiming to be "Inc." or "LLC" should show up.

3. Is it licensed, if it needs to be?

Contractors, electricians, plumbers, real estate agents, insurance agents, doctors and many other professions need a state license. Get the license number and check it yourself on the official state lookup, on a website ending in .gov. For home projects, see how to check a contractor before you hire.

4. Is the website real?

• Check the exact address. Scam sites copy real brands with one letter changed or an extra word added.
• Look up how long the domain has existed. A "decades-old family business" with a website registered last month is a red flag. (CheckThisBiz shows the registration date on listings with websites.)
• Look for a physical address, a working phone number and real contact details, not only a form.

5. Is it still open?

Businesses close, and old listings linger. Call during business hours, check recent reviews and posts, and look at whether listings mark it as closed. Paying a deposit to a business that has quietly shut down is a common and avoidable loss.

6. What do real customers say?

Read reviews on more than one site, and read the negative ones. Look for patterns: several people describing the same problem matters more than one angry review. Be skeptical of a flood of short, perfect reviews posted within days of each other.

7. Watch for pressure and payment red flags

• Pressure to decide or pay immediately.
• Requests for payment by gift card, wire transfer, cryptocurrency or a payment app to a personal name.
• A large upfront deposit before any work or delivery.
• Contact details that change, or a refusal to put anything in writing.

A legitimate business will be fine with you taking a day to check. Use the phone number from an independent listing, not the one in the message, when you call back.