by Aster C. Lilly

Created on: March 19, 2007   Last Updated: April 11, 2007

So, you want to check out a company, but you're worried about its legitimacy? A few signs that a company is a scam:

1. You have to pay money up front.

The business should be paying you, not the other way around. Any time you have to pay up front, take caution.

2. The business does not have a listing with the secretary of state.

Any reputable business must register with the Secretary of State as a corporation. If the business does not have a listing, ask to see that listing.

3. The business does not have a F.E.I.N. number.

An F.E.I.N. number is a public record of a business. It's like a business's social security number; it's unique and tied to the owners of that business.

4. The business is not a member of the Better Business Bureau

Keep in mind that any business can REGISTER with the BBB, but to be a MEMBER, businesses must be in existence for several years and pay dues. Viewing a basic report on the Better Business Bureau is FREE.

Another thing to look out for on the BBB is the number of complaints. People complain about businesses all the time. One or two complaints over three years IS A GOOD SIGN, that means that the company has enough business that they actually get disgruntled customers.

5. The business is not listed with Dun and Bradstreet

Dun and Bradstreet is similar to the Better Business Bureau, however it relates more to business revenue and income than customer relations. Viewing a basic listing on Dunandbradstreet.com is FREE.

6. The business does not have a physical address.

Sometimes, businesses have multiple owners, or are owned by other companies. Any reputable business will have a current mailing address, even internet jobs.

Hopefully these simple tests will help you find out if a business is a scam or not. As they say, buyer beware!

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