Entity Verification
What entity verification means in KYB, what data points to verify, and how verification differs from identity proofing.
2 min read
Entity verification is the process of confirming that a business exists as a legal entity and that the information provided about it is accurate.
What Gets Verified
| Data Point | Verification Method |
|---|---|
| Legal name | Secretary of State records |
| Registration status | State business registry lookup |
| Formation date | Official filing records |
| Registered agent | State records |
| EIN/Tax ID | IRS databases, TIN matching |
| Address | Postal verification, commercial databases |
| Officers/directors | Corporate filings, registry data |
Verification vs. Validation
| Term | Meaning |
|---|---|
| Verification | Confirming information matches authoritative sources |
| Validation | Checking that data is properly formatted and complete |
Validation happens first (is this a valid EIN format?), verification happens second (does this EIN belong to this company?).
Entity Verification in KYB
Entity verification is the foundation of KYB. Without confirming the business exists:
- Beneficial ownership verification is meaningless
- Sanctions screening may miss true parties
- Risk assessment lacks a valid subject
Challenges
- Jurisdiction fragmentation: 50+ US states, each with different systems
- Data freshness: Registry data may be outdated
- Name variations: Trade names, DBAs, abbreviations
- Entity evolution: Mergers, conversions, dissolutions
See Entity Resolution for techniques to match entities across data sources.
Related: Legal Entity | Entity Resolution | Secretary of State