To verify a business license, look the business up directly through the agency that issued the license rather than trusting any document the business shows you. For most companies that means three separate checks: the Secretary of State for the legal entity, the occupational or professional board for the trade license, and the city or county for local operating permits. Some industries add a federal layer on top. Each check takes a few minutes online once you know where to go.
Gather the Right Identifiers First
Searches go faster and return cleaner results when you have the business’s full legal name as filed in its formation documents, which sometimes differs from the brand name on a storefront or website. If the company uses a trade name, run that “doing business as” name as a separate search; it can turn up records the legal name misses.
A street address helps when similar names appear across different cities or counties. Owner, officer, and registered agent names are also useful because most state databases let you search by person as well as by entity. A license number, filing number, or approximate formation year narrows things further. For tax-exempt organizations, the Employer Identification Number is searchable through the IRS Tax Exempt Organization Search tool, which confirms both the name and the tax-exempt status.
Confirm the Entity With the Secretary of State
Nearly every state offers a free online entity search through the Secretary of State’s office. These databases cover corporations, LLCs, partnerships, and other registered entities, and they show the formation date, current status, registered agent, and principal office address.
The status field carries most of the weight. A business marked “active” or “in good standing” has met its annual filing and fee obligations. One marked “administratively dissolved” or “revoked” has fallen behind, which can mean anything from a clerical lapse to a company that no longer operates. Some states combine entity registration with tax accounts and operating permits in a single search portal.
Keep in mind that registration and licensure are not the same thing. Registering an LLC creates a legal entity; it does not authorize that entity to perform regulated work. A company can be properly registered yet lack the occupational license required for the services it advertises. The entity search is step one, not the whole verification.
Check the Occupational or Professional License
For licensed professions — healthcare providers, attorneys, engineers, contractors, cosmetologists, real estate agents, and others — the most reliable verification comes from the regulatory board that governs that specific occupation. These boards keep their own databases, separate from the Secretary of State, and the records are more detailed than a generic entity search.
A board’s license lookup will show whether the credential is active, expired, suspended, or revoked. Most boards also publish disciplinary history: complaints, administrative fines, formal reprimands. A contractor licensing board, for example, may list past consumer complaints or bond claims filed against the business. This is where you find out not just whether someone is licensed, but whether they have had trouble keeping that license.
Finding the right board depends on the state. Some house dozens of boards under a single Department of Professional Regulation; others keep each board independent. A search for the profession, “license verification,” and the state name usually surfaces the correct agency.
Practitioners Who Work Across State Lines
Professionals who work in more than one state may hold separate licenses in each or participate in an interstate licensing compact. Compacts let practitioners work in member states without obtaining a full separate license in each one. Active compacts exist for several professions, including nursing, medicine, psychology, physical therapy, and emergency medical services. If someone claims to practice in a state other than where their primary license was issued, ask which compact or reciprocity agreement covers the work and verify their standing through the compact’s own database.
Check Local Operating Permits
Many general operating permits originate at the city or county level rather than the state. A restaurant needs a local health permit. A home contractor needs a local building trade license. A retail shop needs a general business tax receipt from the municipality where it operates. The issuing office varies — it might be the city clerk, a county tax collector, or a dedicated licensing department.
Start with the physical address where the business operates and determine whether that location sits inside city limits or on unincorporated county land. Larger cities and counties maintain searchable online databases. Smaller jurisdictions may require a phone call or a visit to the clerk’s office. Local licenses are often tied to zoning compliance, so the business must be in a zone that permits its activity. A home-based business may also need a separate home occupation permit on top of its general license.
Operating without local permits can trigger cease-and-desist orders or daily fines that accumulate until the business comes into compliance. The amounts vary widely by jurisdiction.
Check Federal Licenses for Regulated Industries
Certain industries are regulated at the federal level, and no state database will show those credentials. If a business operates in aviation, firearms, alcohol production, broadcasting, nuclear energy, commercial fishing, maritime transport, or mining on federal lands, it needs a license from the federal agency that oversees that activity.
The U.S. Small Business Administration maintains a list of federally regulated activities and the agencies responsible for each. Common examples include the Federal Aviation Administration for aircraft operators, the Bureau of Alcohol, Tobacco, Firearms and Explosives for firearms dealers, the Federal Communications Commission for broadcasters, and the Alcohol and Tobacco Tax and Trade Bureau for alcohol manufacturers and wholesalers.
Financial Advisers and Brokers
Financial professionals have dedicated federal verification tools, and the consequences of hiring an unregistered adviser can be severe. FINRA’s BrokerCheck is a free tool that shows whether a broker or financial adviser is registered as required by law, along with employment history, licensing information, regulatory actions, arbitrations, and customer complaints. For investment advisory firms, the SEC’s Investment Adviser Public Disclosure (IAPD) database lets you search a firm and view its Form ADV, which includes information about the firm’s business operations and any disciplinary history involving the firm or its key personnel.
Verify Insurance and Bonds Separately
A valid license does not tell you whether a business carries adequate insurance. Before hiring a contractor or service provider for significant work, ask for a certificate of liability insurance and request that it come directly from the insurance company or agent, not from the contractor. Verbal assurances that someone is “insured” are worthless.
When the certificate arrives, check three things: the business name matches the company you are hiring, the policy dates cover the expected duration of the project, and the coverage limits fit the scope of work. For extra assurance, call the insurance company or agent listed on the certificate to confirm the policy is active.
Surety bonds are different from insurance. A bond protects you, the consumer, rather than the contractor. Many states require contractors, auto dealers, and other licensed businesses to post surety bonds as a condition of licensure. To verify a bond, contact the surety company that issued it. If you later need to file a claim because a contractor failed to complete work or violated licensing requirements, the surety company’s claims department handles that process.
Spot Fake Licenses and Scam Demands
Fake licenses exist, and so do scam operations that impersonate government agencies to collect fees from small businesses. The Federal Trade Commission warns that scammers frequently pose as government agents, threatening to suspend business licenses or impose fines unless the business pays immediately through wire transfers, cryptocurrency, or gift cards. Any demand for payment through those methods is a red flag.
Do not take a physical license or certificate at face value. Legitimate state-issued documents typically carry security features such as validation numbers, official seals, or unique document locator numbers. Many states offer online validation tools where you can enter a validation number to confirm the document was actually issued. If the document lacks these features, or the issuing agency has no record of it, treat it as suspect.
The most reliable move is always to look the license up yourself through the issuing agency’s own database rather than relying on paperwork the business provides. A contractor who balks at giving you a license number to check independently is telling you something.
When Online Records Fall Short: Public Records Requests
If the online databases do not have what you need, a formal public records request can get you the underlying file. At the federal level, the Freedom of Information Act gives you the right to request records from federal agencies and requires a response within 20 working days, with a possible 10-working-day extension for unusual circumstances. The federal FOIA does not apply to state or local governments.
Every state has its own open records law, with response timelines and fees that differ considerably. To file a state request, identify the specific agency that holds the records, then submit a written request describing the documents as specifically as you can. Including the business name, license number, and any other identifying details helps the records custodian locate the file quickly. A successful request can produce the full application history, renewal documents, insurance certificates on file, and correspondence between the agency and the business. These requests are especially useful when records predate the state’s online database or when a smaller jurisdiction has not digitized its files.
What to Do If the Business Is Unlicensed
If your search shows the business lacks the required license for the work it is performing, report it to the regulatory board or licensing agency that governs its industry in your state. These agencies have enforcement divisions that investigate complaints about unlicensed activity.
For businesses engaged in fraud or deceptive practices, file a report with the Federal Trade Commission at ReportFraud.ftc.gov. The FTC shares these reports with law enforcement partners who use them to build investigations. Your state attorney general’s consumer protection division is another avenue, particularly for complaints about contractors, home improvement companies, and other businesses that deal directly with consumers.
If you have already paid an unlicensed business for work, your legal options depend on your state’s consumer protection laws. In many states, contracts with unlicensed businesses are voidable, meaning you may be able to recover money paid. An attorney who handles consumer protection cases can advise you on the specifics in your jurisdiction.