Business License Verification
Not all vendors receiving payment from companies are really in business to do anything other than collect checks. False vendor accounts are easily set up so that any dishonest employee with the authority to pay vendors can, essentially, direct checks anywhere – even to one’s own checking account! Decades of performing internal theft and embezzlement cases has shown us how simple it would have been for hundreds of unwary clients to have eliminated the risk of paying false vendors through simple due diligence.
When performing due diligence on a potential vendor, it is important to determine if they hold all necessary licensure and permits. We are able to quickly verify the existence of a business license and determine if it is valid.
We start by identifying the license number, the issuing local or state governmental agency, and the original date that the license was obtained. It is also important to verify whether or not the business is licensed in the city where the business was alleged to have been located. In addition, we can review local zoning requirements to ensure the business holds all necessary permits and does not violate any property covenants.
If the property in question is a mail drop service, for instance, and you are paying what you believe to be a trucking or manufacturing company, this "red flag" immediately gets your attention.
The majority of businesses require county or city licenses, or both, to operate. Local permits required by city or county agencies can include tax certificates, alarm permits, elevator licenses, health certificates, fire code permits, building and zoning certification and signage permits.
It is important to note that various counties may have different licensing requirements. In addition, certain types of businesses require additional licensing at the state level, such as construction, insurance purveyors, attorneys, child care, nursing, medical, chiropractic, veterinary clinics or businesses that manufacture, store, transport or serve food, alcohol, weapons, explosives, drugs or tobacco products.
Finally, in certain cases, a federal license is required for specific types of businesses, such as agriculture, firearms dealers, aviation, or investment and brokerage services.
Our License Verification Services Benefits
- Verify whether or not a business/individual holds a valid license
- Determine if a business holds all necessary permits
- Identify the owners of the business
- Determine if a business meets local zoning requirements
- Identify consumer complaints
- Determine when a business license will expire or require renewal
- Obtain a description of the services offered by the business
- Identify administrative/disciplinary action records
- Determine if a license has previously been suspended or revoked
- Identify business address and contact information
- Determine if a specific business requires additional state and/or federal licenses
We strongly recommend our clients utilize our business license verification service before entering into any business relationship.