How to check if a business is verified in the U.S.: A guide
One of the most crucial steps in business is to ensure your company is registered. If you’re looking for a new partner you can trust in your business, you must check whether they’re registered with the Secretary of State or not.
In the U.S., there are many methods you can use to check company registration, but the most useful way is to search the Secretary of State and look for the state where the company is located. Luckily, almost every state has an online database of businesses, so you can begin your hunt in multiple states at once.
If you’re looking for a trustworthy company you’re considering doing business with them or partnering with, and you don’t know where to start, this article will provide you with the basics. You’ll learn more about the different ways you can use to check company registration, and more.
Why is Business Registration Essential?
Business verification with the Secretary of State ensures the business you’re trying to work with is legal and trustworthy. Thanks to the internet, you can easily surf the website and search in different states if a company’s profile and services are valid.
Nowadays, there are many reasons why you need to find a legal and authentic company you intend to do business with. That said, you must remember that the chances of encountering unregistered companies are high, especially if you can find their license or permit on the Secretary of State’s website.
Other forms of communication and the internet have made it possible for us to determine whether a business is registered and learn more about its owners. According to statistics, the Business Register includes over 160,000 established companies around the U.S. Additionally, in 2020, the U.S. experienced a 95% increase in business applications, especially after the pandemic.
However, if you’re looking to establish your company, business verification is beneficial for the growth of your company. Since the USA provides the largest market worldwide, registering your business there would offer some additional advantages to enhance the success of your company.
7 Benefits of Business Registration
Registering a company in the USA comes with many benefits, mainly because the procedures can be done within a week, and you don’t need to worry about the validity of your business. In the U.S., there are different types of companies, such as Limited Liability Partnerships, private or public, so registration differs. Regardless, each company can benefit from business registration. Here are the five most common advantages:
As stated, the U.S. is known for its massive market size, which gives your business a chance to receive international recognition. If you register your company in the U.S., you’d get a significant standing in the market, attract new potential clients, and be more successful.
The business-friendly legislation is one of the best advantages of registering your company in the U.S. On top of that, the U.S market has lower tax rates, making it easier for new business owners and entrepreneurs to pierce their way into the market.
Protect Your Assets
When you register your business in the U.S., your assets are immediately protected, so you don’t mix business actions with personal activities. At the same time, your company will have a separate legal identity, meaning it’s responsible for any debt that might arise in the company.
In case of bankruptcy, you can only take money from the company assets, not your ones. Moreover, it allows you to go on with your business actions, without risking personal belongings, cash, or land.
Raise Equity Capital
Once you register your business in the U.S., you’re more likely to have easy access to capital and issue shares in the market. If you want to expand your business, you must have a regular supply of capital, so other investors can invest in your registered company.
When you do so, your company tends to give more profits to investors and you have access to different sources of banks and capital. As a registered company, you can also get loans from different banks because you’re more likely to repay them, compared to other non-verified businesses.
Increase Brand Awareness and Creditability
As a business owner, you want to make your company stand out from the competition, and the best tool to help with that is business verification. When you register your company, you’ll earn some additional benefits like enhanced creditability, brand awareness, extra discounts, and partnerships with renowned companies.
Suitable Market for Your Business
The main benefit of the U.S. market is the variety of states and cities that provide job opportunities to attract new business owners. These cities encourage new entrepreneurs to invest in these places because they have plenty of opportunities. So after you register your company, you can choose the best suitable place that suits your brand’s services.
Enhance Business through Technology
It’s a well-known fact that the U.S. is a place of technology, meaning they have some of the most advanced tools to help new entrepreneurs improve their companies. That said, many owners register their businesses only to have access to the best technologies which help them survive in the market and increase their productivity.
5 Ways to Check If a Company is Registered in the U.S.
As mentioned before, there are many ways you can check whether a company is verified in the U.S. or not. So if you’re interested to know more about the validity of a company, here are five ways you can use it:
Visit the State Business Department
One of the safest and easiest ways to check if a company is registered in the U.S. is to visit the State Business Department’s website. However, you must remember to check a business’ registration at the state level and the entity name check will show in the state where the company was integrated.
You can usually find these registered companies on the Secretary of State and State Department sites with a simple Google search, and it’ll take you to the proper website.
Although Google search might sound too odd, you can use that to acquire information about anything, even the validity of a company. Essentially, you have to search for the business name, go to their website, and check whether they have the proper corporate name and state.
Remember that simply searching a company name will offer you plenty of information, so you can easily find paid and free business services that provide sufficient information about the company. Some free business services include Crunchbase and D&B.
Search Online National Directories
If you want to use something quick, you can head to online national directories. Although not all businesses are registered nationally, you can still try it by visiting National Corporation Directory. The chances of finding accurate results are not the best, but they’re useful for a fast preliminary search.
However, if you’re searching for a specific registration of a foreign company, you should start with the country of origin.
Use the SEC’S EDGAR
Another way to check whether a business is verified is to search the Securities and Exchange Commission. Additionally, you must understand that SEC has a personal registration lookup and a search engine, also known as EDGAR.
According to the Securities and Exchange Commission, the registration lookup is focused on domestic and foreign businesses that have agreed to work in the U.S. EDGAR, on the other hand, includes different reports and registration statements of public businesses that date back 20 years.
If you’re trying to find a specific public company and its history, SEC’s EDGAR might be useful. However, if you’re interested in researching a potential contractor or business partner, then this is not the best tool for that.
Search the Trademark and Patent Office
Different business owners are interested in different aspects of another company. For example, if you’re looking for a trademark or patent, you should search the United States Patent and Trademark Office. On their website, you can see a ‘’Find It Fast’’ option where you can explore a register of both trademarks and patents.
Not Every Business is Verified
While it’s true anyone can do business, not all companies are registered as businesses in the U.S. Sometimes, new companies are waiting for their registration process to be complete, while others tend to do business as unregistered companies.
Although they may be at a disadvantage because they miss out on liability and tax benefits, they’re legally able to operate as themselves. However, non-registered businesses are a warning sign for many new entrepreneurs who are looking for trustworthy and valid partners. As a result, they’ll end up doing further research to find a registered company that ticks all the boxes.
Nowadays, you have many sources you can use to check whether a business is legally registered or not. You can do this by either researching official websites which provide proof of licensing or registration number. If you find evidence of licensing or the registration number, it means the business is legal and valid.