Most problems with a new business relationship show up in public records first: a dissolved company, a string of lawsuits, unpaid taxes or liens. Checking takes an hour or two and can save months of trouble.
Is the company real and active?
- State registration: in Florida, Sunbiz shows the entity's status, officers, registered agent and filing history.
- Name match: the name on the contract and the invoice should match the registered name exactly.
- Licenses: for licensed trades and professions, check the license with the state board.
What do the records say?
- Lawsuits: county and federal court records, as plaintiff and as defendant.
- Judgments and liens: the clerk's official records.
- Secured debts: UCC filings show who has a claim on the company's assets.
- Complaints: licensing boards and consumer agencies.
Who is behind it?
Officers and managers listed with the state, and other companies they are tied to, can reveal a pattern of businesses that open and close.
Keep a record
Save copies of what you found with the date. If something goes wrong later, you will have shown you checked.
Our due diligence checklist walks through each step, and our research service puts it in a written report.
General information. Public records can be incomplete; confirm anything important with the source.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
