To check a company before you do business with it, start with the state’s business registration database to confirm it legally exists and is in good standing, then layer in federal and state court records, lien filings, and regulatory databases to surface lawsuits, debts, and sanctions. Most of these searches are free, and together they’ll tell you whether a company is what it claims to be.
Get the Legal Name and Basic Identifiers First
The single most important piece of information is the company’s full legal name, which is often different from the brand name on its website or storefront. A business might market itself as “Apex Builders” while its legal name on file is “Apex Construction Holdings LLC.” You’ll find the legal name in the fine print of a website footer, in the signature block of any contract draft, or on invoices. State databases match on exact names, and a slight variation can return zero results or pull up the wrong entity.
Also note the state where the company was originally formed, since that’s the state whose records will have the most complete filing history. A Delaware-formed LLC operating in California will appear in both states’ databases, but Delaware’s will show the original formation documents. If the company operates in a state other than where it was formed, it should be registered there as a “foreign entity” and hold a certificate of authority. The absence of that registration in a state where the company clearly does business is worth investigating.
Finally, note the name of the company’s registered agent, the person or service designated to receive legal notices and lawsuits on behalf of the business. Every registered entity must have one on file. This helps you confirm you’re looking at the correct entity when multiple businesses share similar names.
Verify Registration Through the Secretary of State
Nearly every state offers a free online business search through its secretary of state or equivalent agency. Type in the legal name, and the database returns the entity’s current status, formation date, registered agent, and sometimes the names of officers or managers.
The status label is what you’re looking for first. “Active,” “In Good Standing,” or “Current” all mean the entity has kept up with its filing obligations and is authorized to transact business. A status reading “Involuntarily Dissolved,” “Revoked,” or “Administratively Terminated” means the company failed to file required annual reports or pay state fees, and the state stripped its authority to operate. A dissolved entity may lose the liability protections that come with its corporate or LLC structure, which can leave the people behind it personally exposed. It also raises questions about whether any contract you sign would be enforceable in the way you’d expect.
These databases also reveal the formation date, which lets you verify claims about how long the company has been operating. A business that markets itself as “serving clients since 1998” but shows a formation date of 2022 deserves follow-up questions. Discrepancies like this don’t always mean fraud, since businesses restructure and reincorporate, but they do signal you should dig deeper.
If you need formal proof that a company is current, you can request a Certificate of Good Standing (sometimes called a Certificate of Existence) from the filing office. Fees range from roughly $5 to $65 depending on the state, with most falling between $10 and $50. Banks, landlords, and government agencies commonly require these before approving financing or contracts.
Search Federal Court Records on PACER
PACER, the Public Access to Court Electronic Records system, is the federal judiciary’s online platform for searching case dockets across all federal district, bankruptcy, and appellate courts. Run a party-name search using the company’s legal name to find federal lawsuits, bankruptcy filings, or appeals.1United States Courts. Find a Case PACER
Access costs $0.10 per page, capped at $3.00 per document. If you keep quarterly usage at $30 or less, the fees are waived entirely, which makes casual due diligence searches essentially free.2U.S. Courts. PACER Pricing How Fees Work Registration is straightforward. Once you pull up results, focus on the nature of each case: is the company being sued for breach of contract, nonpayment, or fraud? A single lawsuit might mean nothing. A pattern of similar claims over several years is a different story.
Bankruptcy filings deserve special attention. A company in active Chapter 11 reorganization is operating under court supervision with restructured debts, which directly affects its ability to honor new obligations. A past Chapter 7 liquidation tied to the same principals who now run a “new” entity is the kind of pattern PACER makes visible.
Check State and County Courts
Federal courts handle only a fraction of business litigation. Contract disputes, collection actions, and tort claims more commonly land in state courts, and that’s where the search gets harder. Many states don’t maintain a single centralized database for all court records. Records are kept at the county level, and you have to search each county’s system individually. A company operating across several counties could have lawsuits scattered across multiple courthouses with no single portal connecting them.
Some states do offer statewide search tools, but coverage varies widely. When you can’t find a centralized option, focus on the county where the company is headquartered and any counties where it has significant operations. Most county court websites allow free case lookups by party name, though a few charge small access fees. Filter results to the last five to seven years for the most relevant snapshot of ongoing risk.
Run a UCC Lien Search
Uniform Commercial Code filings under Article 9 track security interests, which are essentially liens that lenders place on a company’s equipment, inventory, accounts receivable, or other business assets as collateral for loans.3Cornell Law School / Legal Information Institute. UCC – Article 9 – Secured Transactions 2010 These filings are public records maintained by the secretary of state in the state where the debtor is organized.
A few active UCC filings are perfectly normal for a company with business loans. The red flags are an unusually large number of filings relative to the company’s size, filings by the IRS or state tax authorities (indicating tax debt), or filings that appear to encumber virtually all of the company’s assets. A company whose every piece of equipment and every receivable is pledged as collateral has very little financial flexibility, and that affects its ability to perform on new contracts. Most states offer basic UCC searches for free through their online filing systems, though certified search reports may carry a small fee.
Check Federal Exclusions and Tax Liens
If you’re considering a company for government-adjacent work or as a subcontractor on a federal project, check whether it has been suspended or debarred from receiving federal contracts. The System for Award Management at SAM.gov maintains the exclusion list, and you can search it by entity name without creating an account.4SAM.gov. Search Exclusions An exclusion means a federal agency has determined the entity engaged in fraud, serious contract violations, or other conduct that disqualifies it from government business. Even outside government contracting, a debarment is a strong signal of integrity problems.
The IRS files federal tax liens against businesses that owe back taxes, and these liens attach to all of the company’s property and future assets. There is no single national search portal for federal tax liens. They are filed with local recording offices, typically in the county where the business is located, or with the state filing office. You’ll need to check the relevant county recorder’s office, which in many jurisdictions offers online access. The IRS does maintain a bulk database of business liens, but it is distributed quarterly on disc rather than through a searchable website.5Internal Revenue Service. Automated Lien System Database Listing
Industry-Specific Regulatory Databases
Public Companies
Any company that sells stock to the public must file periodic financial reports with the Securities and Exchange Commission, and those filings are available for free through the EDGAR database at sec.gov.6U.S. Securities and Exchange Commission. EDGAR Full Text Search The most useful filings for due diligence are the 10-K (annual report with audited financial statements), the 10-Q (quarterly unaudited financials), and the 8-K (reports of major events like leadership changes, lawsuits, or financial impairments). You can search by company name or ticker symbol and filter by filing type and date range. Reading through the risk disclosures in a 10-K alone can reveal more about a company’s vulnerabilities than almost any other public source.
Financial Services Firms
For broker-dealers and investment advisory firms, FINRA’s BrokerCheck provides free background reports that include employment history, regulatory actions, arbitration outcomes, and customer complaints.7Financial Industry Regulatory Authority. BrokerCheck – Find a Broker, Investment or Financial Advisor FINRA also publishes monthly disciplinary actions against firms and individuals who violate securities rules, which can include fines, suspensions, or permanent industry bans.8FINRA. Monthly Disciplinary Actions
Workplace Safety
The Occupational Safety and Health Administration maintains a searchable database of workplace inspections and citations at osha.gov. Search by company name and view details of any violations cited, including the severity and whether penalties were assessed.9Occupational Safety and Health Administration. Establishment Search For companies in construction, manufacturing, or other physically intensive industries, repeated serious OSHA violations suggest management problems that go beyond workplace safety.
Professional and Trade Licenses
Many industries require state-issued professional licenses: general contractors, electricians, real estate brokers, medical providers, and dozens of others. Each state’s licensing board maintains a searchable database where you can confirm whether a company holds a valid, current license. An expired or revoked license means the company is not legally authorized to perform the work it’s advertising. These searches are free and usually take less than a minute on the relevant state agency’s website.
Consumer Complaints and Enforcement Records
Better Business Bureau
The BBB assigns letter grades from A+ to F based on complaint volume, resolution history, time in business, licensing status, government actions, and advertising practices. The grade is a useful starting point, but the individual complaint narratives often tell you more than the letter does. Look for patterns: a company with an A rating overall but a cluster of recent complaints about the same issue may be heading into trouble the rating hasn’t caught up with yet.
CFPB Complaint Database
For financial products and services, the Consumer Financial Protection Bureau maintains a publicly searchable complaint database at consumerfinance.gov.10Consumer Financial Protection Bureau. Search the Consumer Complaint Database Search by company name and filter by product type, issue, and date. Each complaint shows the company’s response and whether the consumer disputed it. If you’re evaluating a lender, debt collector, or financial services provider, this is one of the most useful free tools available.
FTC Actions
The Federal Trade Commission’s Consumer Sentinel Network collects fraud and deception reports, but it’s restricted to law enforcement and not available to the public.11Federal Trade Commission. Consumer Sentinel Network You can’t look up complaints against a specific company through the FTC, but you can check whether the agency has brought formal enforcement actions by searching its press releases and case documents.
Layer the Results
No single database tells the complete story. A clean PACER record doesn’t rule out state-level litigation. A dissolved status might just mean someone forgot to file an annual report. The value is in layering: when registration records, court history, lien filings, and regulatory databases all come back clean, you have a reasonable basis for confidence. When problems show up in more than one place, that’s your signal to slow down.