How to Make Sure a Company Is Legitimate

When you consider doing business with a company, you want to know its track record and that you'll have recourse if there's a problem.

Difficulty:

Moderate

Instructions

Things You'll Need

• Telephones
• Dun & Bradstreet Subscription
• Hoover's Memberships
• DSL Lines
• Internet Access
• Notebooks
• Pencils Or Pens
• Computers

1. Find out if the company has a legitimate address and business phone number.

2. Stay away from a business that uses a post office box as its corporate address and can only be reached by leaving a message on an answering machine or with a call-center operator.

3. Find out if the company is registered with a major business directory such as Dun & Bradstreet (dnb.com) or Hoovers.com. You can verify this information on the Internet.

4. Find out if the company is licensed by the state.

5. Ask if the company is a member of any professional association. You can verify its membership by contacting the organization directly.

6. Look for TRUSTe certification on a Web-based business's home page. Other organizations also specialize in certifying, rating and reviewing Web-based businesses. View their sites for information.

7. Check the company's complaint record with your local consumer affairs department or state attorney general.

Tips & Warnings

• Avoid businesses that solicit door-to-door, pressure you to make immediate decisions, or offer exceptionally good "deals" and long-term guarantees.

• Rely on your intuition. If you sense some discomfort, walk away and find another merchant or service provider.