KYB Verification
KYB verification
Quick answer. 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
Steps
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Match the legal name to a file number
Copy both from the state page. Reject a DBA that has no underlying entity.
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Read status and standing
Active is not the same as good standing. Note which word the state used.
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Collect the EIN from the business
Confirm it with IRS TIN matching if your role allows it. Do not scrape a guessed number.
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Screen names
Entity and people, on the current OFAC tool, with the search date in the file.
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.