- A legitimate business will have an employer tax identification number as well as a board of directors' summary. These documents, as well as all other documents relating to the business structure, will be made available to investors, employees and customers via a company website or in person through the Human Resource department. A legitimate business will always operate under a code of transparency. In other words, all complaints made against the company, legal decisions regarding the state of the business, and expansion data will be made available so interested parties can track and monitor all aspects of the business, including charitable donations, profits margins and workforce statistics.
- All legitimate businesses pay state and local taxes. With the exception of non-profits and educational organizations, commercial businesses are expected to pay taxes and impose a state sales tax whenever goods and services are rendered. Failure to do so can result in heavy penalties and fees. For more information, ask the business to disclose its tax records or contact the Secretary of State office or website to obtain state records for that business. This information is part of the public domain and can be made available if requested.
- Legitimate businesses hire employees or contract workers and provide a wage that meets at least the minimum wage set forth by the state of residence. Legitimate businesses also adhere to federal regulations regarding immigrant workers. Business owners must request and investigate the citizenship status of each worker. Upon employment, Social Security and applicable taxes should be withheld and then transferred over to the appropriate city, state or federal agency. The Internal Revenue Service handles all taxation in the United States for businesses and individuals.
- The Better Business Bureau (BBB) is set up to collect and communicate information about U.S. businesses. Consumers can visit the Better Business Bureau website to view a BBB rating of the business as well as review past consumer complaints made against the business and government actions taken against the business. The outcome of all complaints and investigations are provided with a final summary of the events. Business contact and profile information is also available through the bureau website.
- Always verify Internet and Telecommuting positions that advertising work from home employment. Some of these businesses are not legitimate and work off of money that is provided for training fees and other service-based income they generate from potential employees. Always contact the Better Business Bureau or Secretary of State or United States' Department of labor for more information about the business.
