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How to Investigate a Small Business

Thursday, April 09, 2009
Related Tags: business | bbb | ucc | proprietor | company
 

Instructions

  • Step 1:
    Go to your state's department of corporations. Most states have their departments of corporations online. Look for online services. You will be given a choice of a few searches---choose "search by business name." Enter the business name. The record will come up. The department of corporations will tell you whether the business is active or not. You will also be able to see the incorporation documents and yearly filings for the business. If the business is inactive, chances are it is not a business you want to deal with.
  • Step 2:
    Look up a sole proprietor by checking for a fictitious name on the department of corporation's website. A sole proprietor may not always be listed. You can also check for a sole proprietor if you know the owner's name. If your state does not have its department of corporations online, you may have to visit in person or call the agency for the information.
  • Step 3:
    Search for the business name at the Better Business Bureau (BBB). You may also find information about a company that is no longer active and sole proprietorships on the BBB website. This search will provide you with any complaints against a company. If a company is registered with the BBB, a search of its name may only bring up information stating that there have been no complaints about that company. A company does not have to be registered with the BBB to have complaints listed.
  • Step 4:
    Check the Securities and Exchange Commission (SEC) if the company is publicly traded. You can also check hoovers.com for business profiles. If the company you are investigating requires its employees to have professional licenses, you can also make sure the employees are properly licensed by checking the status of their licenses. You can find this information through crimetime.com---click "Business," then click "Professional Licenses."
  • Step 5:
    Check the UCC (Uniform Commercial Code) filings of the business. This information only tells you if the business owes on a secured loan, but knowing a bit about the business's financial information may let you know whether you should do business with it or not. UCC filings are indexed by state. Links to the UCC filings can also be found at the "List of Business Resources by State" link in the Resources below.

Resources


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