KYB Verification

Entity identity, ownership clues, and a review request for compliance teams.

KYB Verification

KYB Requirements

Quick answer. KYB requirements are whatever your bank, regulator, or policy names: legal name, formation evidence, address, and beneficial owners. There is not one form titled KYB at a secretary of state. KYB verification means confirming a business is the legal entity it claims to be. Start with the state file number and status, then match the EIN only through IRS channels, then screen names on OFAC. A website and a logo are not proof.

Official office

USA.gov — State governments

Open the official search

Steps

  1. Match the legal name to a file number

    Copy both from the state page. Reject a DBA that has no underlying entity.

  2. Read status and standing

    Active is not the same as good standing. Note which word the state used.

  3. Collect the EIN from the business

    Confirm it with IRS TIN matching if your role allows it. Do not scrape a guessed number.

  4. Screen names

    Entity and people, on the current OFAC tool, with the search date in the file.

Requirements come from your program

Map each requirement to a source. Existence maps to the state file. Address may be the registered office, which is not always the operating address. Owners map to company documents.

If a vendor checklist adds items the policy does not, say they are extra. Do not silently treat a marketing checklist as law.

Verify the legal entity first

Business verification in a bank file usually wants the legal name, jurisdiction, file number, status, and formation date from the secretary of state. The registered agent is a service address. Officers on an annual report are a snapshot, not a guarantee of who signs today.

TIN matching is an IRS process for payers who already have a name and TIN from the payee. A public search site cannot “verify an EIN” by guessing. If the customer will not provide the number, say the TIN check is incomplete.

Sanctions screening sits beside the entity file, not inside it. Run the legal name and known owners in OFAC’s tool and store the date. Ownership questions under the 50 percent rule need documents, not a second click on the state search.

Common mistakes

  • Treating a Google listing as KYB.
  • Calling the registered agent the owner.
  • Marking TIN verified without an IRS result.
  • Using one vendor score as a legal opinion.

Questions

What does KYB stand for?

Know your business. It is the entity-side counterpart to know your customer, built from records rather than a logo.

Can you verify an EIN for me?

Only the business or the IRS can confirm a TIN match. We can show the state legal name you should compare to the name on the W-9.

Is KYB the same as KYC?

KYC is about a person. KYB is about the legal entity and, when your policy requires it, the people who own or control it.

Sources reviewed