How to Determine an Internet Company's Legitimacy

Take steps to protect yourself from fraudulant internet companies

The Internet is rampant with work-from-home and small business opportunities. After much consideration and research, if you find a website to help you start your own company that you are interested in, and the company seems legitimate and does not appear to be a scam, you still want to investigate the company further to be sure that they are reputable. Below are several guidelines that you can use to help to determine if an Internet company is legitimate.

Instructions

1. Check with the Better Business Beureau (BBB) (see Resources). Their website will list current information on the company, including any complaints that have been filed. Internet companies are not required to register with the BBB but most legitimate companies will do so on their own.

2. Check with Dun & Bradstreet (see Resources). If a company is publicly traded, Dun & Bradstreet will have a rating for it. You can obtain more detailed information about the company but you will have to pay for it.

3. Check with the chamber of commerce (see Resources). You will have to consult with the chamber of commerce that is located in the area where the company is headquartered. You will be able to obtain details about the company and find out if they are currently under investigation.

4. Call a customer service representative from the company. Ask for a copy of their annual report or list of revenues. Ask for references who can discuss their experience with the company.

5. Ask friends, family and neighbors if they have heard of the company. This is always worth the effort. Your neighbor down the street or your cousin the you only see at weddings and funerals may have had personal experience with the company.

6. Do a little research on your own. Check out some anti-scam websites like ScamBusters (see Resources).

7. Check out the Federal Trade Commission website (see Resources). This website contains a top 12 list of the most popular email scams.

Tips & Warnings

• The BBB has a work at home section that discusses scams. This lists the current, most popular home business scams on the internet.

• If you get references for a company, be sure to follow up with them. Ask how long they have been working with the company, if they encountered any hidden costs or fees when working with the company and what their overall impression is.

• Read the fine print. Before signing up for any home business venture, carefully read every agreement. Do you have to provide your credit card number? Do you have to purchase products from the company? How will you get paid?

Resources

• Better Business Beureau
• Dun & Bradstreet
• Chamber of commerce
• ScamBusters
• Federal Trade Commission