If you are starting a business, be on the lookout for business license schemes. Scammers are using email, mail, social media, phone calls, and any method they can think of to perpetrate the scam. They lie and say for a fee they are able to help get professional or business licenses to start a business. Some even say they issue licenses themselves. While the licensing process may be confusing, don’t be vulnerable to these scammers. Here are a few tips to help anyone looking to start a business or engage in a trade that may require licensing.
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Start with your state or local government for information. This should be one of the first sources you consult to find out if you need a business or professional license. They will be able to tell you if licensing is required and the fee for licensing. Each state has their own requirements and in many cases licensing depends on what services you will provide, where your business will be, and government regulations.
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Check out anyone that claims to be able to issue licenses. Licenses are usually issued by a government agency, so check with the agency first before paying any fees or providing your information. Also, do an Internet search of the name and information of whoever contacts you offering to provide you with a license. This may alert you to a scam.
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Use free resources. The U.S. Small Business Administration offers information on licensing and advice on starting a small business.
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Report scams. Business Consumer Alliance provides scam watch alerts and reports on businesses. If you suspect a scam or have been conned, contact BCA to report the scheme so others may be warned.
About Business Consumer Alliance
Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.