While background checks often focus on individuals, at Checkers International, our research team also routinely conducts in-depth assessments of business entities. Our clients rely on our background checks as a foundational component of evaluating whether a company is trustworthy and one that they want to do business with or invest in. Common use cases include hiring a new vendor, evaluating an existing relationship, exploring merger and acquisition opportunities, and as part of ongoing litigation. These assessments typically include verifying current incorporation status, identifying trade names, reviewing litigation history, and analyzing social media presence. Whether the entity is large or small, our team provides thorough, efficient evaluations of a company’s reputation and history to help you make informed decisions and ensure you spend your time, money, and resources wisely.
Incorporation is the legal process through which a corporate entity is formed and registered with governmental regulatory boards. This process legally separates the corporation’s assets and income from its owners, investors, or shareholders.
However, not all businesses are incorporated. Businesses may also operate as sole proprietorships, partnerships, or limited-liability companies (LLCs). The key difference between these forms of businesses and incorporation is the separation of assets and income from the individuals involved in the business.
At Checkers, our business entity assessments begin with verifying the company’s credentials, including incorporation status. Incorporation involves specific filings with local and federal regulatory boards that must be kept up to date. Even if a business is not incorporated, sole proprietorships and LLCs must meet certain legal requirements. The first step in assessing any business is determining whether it is legally authorized to operate in its municipality, state, or country. You may be surprised at how often businesses continue operating with expired credentials, thinking they are flying under the radar!
It is also important to know whether a business operates as a corporation or an LLC, as these different types of entities have distinct legal obligations and tax filing requirements. A business’s good standing depends, in part, on its compliance with government regulations, such as tax filings with the Internal Revenue Service (IRS) or state tax boards. A business’s failure to file taxes properly may serve as a flag for a potential partner.
In short, determining whether a business complies with federal, state, and local ordinances—whether it operates within the correct zoning and holds the necessary licenses and permits—is the first step in the assessment process.
Businesses often operate under a trademarked name but may also use various trade names. The difference is key for several reasons important to any research conducted by Checkers.
Trademarks are registered with the federal government and are a form of intellectual property. The laws surrounding their creation and maintenance are much more stringent than those for trade names (also known as “doing business as” or DBA) which are registered at the state, county, or local level. Any assessment of a business carried out by Checkers will determine what names are trademarked versus what names the business may be operating under at any given time. Sorting through trademarked, and public-facing names requires skilled analysis. Determining what names a business operates under is also crucial in determining the reach of any business and any social media that may be associated with the investigated entity.
Trademarks also entail a host of conditions and requirements with federal authorities involving administrative and tax filings. Ensuring these filings are up-to-date and that the trademark exists in good standing is another avenue of research when assessing the potential shortcomings of a business.
Corporate entities are exposed to a wide variety of legal disputes, including but not limited to violations of state or federal safety requirements, allegations of discrimination, workplace harassment, failure to pay employees or contractors in a timely manner, and wrongful termination. Disputes regarding contracts and other legally binding agreements are also common.
At Checkers, all assessments of a business entity include a comprehensive investigation into its litigation history. Our legal research team uses all available information, including name, address, and tax status, to determine litigation history. Our legal research team combs through a myriad of court and county records to discover and report on any litigious matters where the business entity is listed either as a plaintiff or defendant.
Many businesses use social media to promote their brand and connect with customers. Through social media channels, businesses advertise new products, publish company news and updates, and even create a public persona that reflects their ethos or purpose. Businesses may empower brand advocates they believe reflect their company in a favorable light as another way to cement the connection with customers.
Just as we do for individual background reports, Checkers performs a comprehensive review of all social media businesses might engage in. Potentially controversial content is flagged, whether in direct statements the company has made or those it has lent support to. It is not uncommon for businesses to align themselves with political causes or publicly support potentially contentious viewpoints. Our Media Researchers survey all available media and provide a detailed and concise report on a business’s social profile. Consumer activism has become one of the most common forms of political action in the United States; knowing how a business represents itself to its consumers is more important than ever.
Online reviews have become increasingly important to any business model. A company connects with consumers not only through social media but also through numerous review websites that have proliferated across the Internet. Review websites offer yet another window into a business’s practices; it is not uncommon to find allegations of permit or zoning violations, health code violations, or accusations of harassment.
As part of research into a business entity, Checkers notes and reports on any such allegations made through online review websites. Most review websites allow the business to respond, providing more details into any given allegation. With a trained staff of media researchers, Checkers is able to differentiate between reviews that reveal potential issues with a business and those that may be bot-generated or simply anomalies in an otherwise positive record.
In any business relationship, understanding your partner is vital. A full picture of a business’ background helps mitigate the risk of you or your company getting involved with a company that is not worth your valuable time, money, and resources. At Checkers International, we provide tailored, comprehensive, and accurate reports on business entities, continuously improving our practices to deliver high-quality reports.
Don’t leave your decisions to chance— Contact Checkers International today and let us help you get the answers you need.
