There are several important steps to successfully check and confirm that a company is legitimate. Frauds and scams are an ever-growing risk when working with new businesses. With massive cost implications, these potential threats can no longer be written off as errors or poor experience. Therefore, it is important to conduct thorough due diligence before working with a new company. As a small business owner, doing so is fundamental to protect your financials, compliance measures, and private company data. To help you get started, read on to learn about how to check if a company is legitimate.
Research The Company
First and foremost, take the time to thoroughly research the company under evaluation. Start off by searching the company name using search engines like Google. Take it one step further and add “company name scams” to your search. This way, you can find out any recent information regarding reported fraud or scams. Simultaneously, you should research then company with notable organizations that examine business credibility. For a start, check their status with the Better Business Bureau (BBB) and Federal Trade Commission (FTC). Here, you will be able to find out if the company was recently reported as illegitimate, untrustworthy, or a scammer. Certainly, researching the company is an important step to analyze business legitimacy.
Analyze Company Website
Use An Online Business Analyzer
Once you have done so, you may want to use an online business analyzer to check if a business is genuine. These advanced scanners are one of the quickest, most accurate and reliable methods to examine business validity. For example, you can use a tool like Casino Analyzer to check for online casino blacklists and avoid scammers. Using this online casino review database, you can easily scan thousands of trusted reviews, slots, games, and bonuses in seconds. This way, you can make accurate quality judgements, aggregate information, and discover new options. Indeed, using an online business analyzer is a great way to ensure a company is legitimate.
Check Their Employer Identification Number (EIN)
Now, you are ready to check the company through their employer identification number. Nearly every businesses are required to obtain a nine-digit EIN number through the Internal Revenue Service, or IRS. This number is utilized to identify employer tax accounts, which signifies a legitimate business status. You can easily perform this search for free using an online EIN finder. If you are unable to find a number for the business you are considering, reach out and ask them why. Simultaneously, you can always research companies through their municipal or state tax ID numbers, which will also assess their validity. Absolutely, verifying an EIN number is important to ensure you are working with a genuine, trustworthy business.
Read Online Reviews & Testimonials
At this point, it is time to search for customer reviews, complaints, and other first-hand information. You can find reviews directly on search engines, as well as through specialized business review networks. Be sure to read multiple five and one star reviews. This way, you can begin to develop an understanding of the company’s strengths and weaknesses. Similarly, you should flag any reviews with negative terms like “scam,” “fraud,” or “lawsuit.” Of course, this is pivotal to ensure that the business is trustworthy, reputable, and legitimate. Definitely, reading online reviews for positive feedback and complaints is essential to choose a legitimate business.
There are several easy steps to check if a small business is legitimate. First, research the company in search engines, as well as across agencies like the Better Business Bureau (BBB) and Federal Trade Commission (FTC). Next, examine the company’s website for any key red flags. Once you have done so, use a digital business analyzer. Now, you are ready to check their employer identification number. At this point, it is time to read some reviews for positive testimonials, as well as negative customer feedback. Follow the points highlighted above to learn about how to check if a company is legitimate.