iDenfy SOS business search tool for KYB compliance

iDenfy, a Lithuanian-based RegTech company best known for its identity verification and fraud prevention automation solutions, introduced a new addition to its Know Your Business (KYB) platform, the Secretary of State (SOS) business search tool.

This new feature helps businesses instantly connect and verify company information across all 50 U.S. states using official Secretary of State records. The new API solution will strive to help high-risk companies, such as fintechs and banks, improve KYB onboarding accuracy and ensure compliance across different states. 

Compliance and financial requirements

SOS is the official authority in each state of the USA, responsible for maintaining business roll records

The Secretary of State (SOS) is the official authority in each United States of America, responsible for maintaining business registration records. 

These databases are saved in order to contain important information if a business is legally registered, its current status (active or inactive), and if it has filed all necessary reports to remain in good standing, meaning that it has met and continues to maintain all compliance and financial requirements.

Without this verification step, any business risks to onboard shell companies or entities which are engaged in financial infidelity.

SOS lookup system 

According to Domantas Ciulde, the CEO of iDenfy, streamlining access to SOS filings helps save time, as manually checking all these databases can be a hassle: “Our SOS lookup system connects to all U.S. SOS office portals and extracts relevant information about another company in seconds, which is vital for B2B partnerships and KYB compliance."

"Otherwise, analysts need to look up all portals manually, and it can be confusing, as some companies are registered in one state, while they actually operate in another location.”

iDenfy’s SOS business search tool

iDenfy’s SOS business search tool simplifies what has traditionally been a fragmented and time-consuming process

According to Ciulde, in cases like this, multiple SOS portals need to be checked, and they can be gated with fees and the need to create multiple accounts to access simple corporate information. Currently, iDenfy’s SOS business search tool simplifies what has traditionally been a fragmented and time-consuming process.

The system is able to automatically receive official data from the Secretary of State and compile a short but very detailed  PDF report which summarises the company’s registration details, legal status, entity type (such as LLC or Corporation), tax ID, registered address, and if any governing person or stakeholder is involved. 

Extra layer of security

iDenfy’s SOS tool also helps to identify potential threats such as inactive entities, missing or inconsistent registration data, and past bankruptcies.

These red flags often signal shell companies and suspicious activity. By identifying these risks early, businesses can protect themselves from reputational damage or regulatory fines. 

Additionally, once a business’s legal data is pulled from the SOS database, it’s automatically cross-checked against other KYB criteria, including sanctions lists, adverse media, and tax ID verification directly from IRS records. 

New vendors and business partners

Companies with weak due diligence processes face an average breach cost of $4.88 million

For high-risk industries like crypto, this extra layer of security is essential in order to avoid bad actors from unclear companies. It’s worth mentioning that as cyber threats continue to rise globally, proper business verification is no longer optional. 

According to IBM’s 2024 Cost of a Data Breach Report, companies with weak due diligence processes face an average breach cost of $4.88 million, especially when onboarding new vendors and business partners without sufficient background checks.

iDenfy’s KYB tools

Domantas Ciulde, CEO of iDenfy, added, “Our goal is to provide businesses with the tools they need to stay compliant while maintaining speed. Access to Secretary of State records was the missing link in many onboarding processes. Now, we finally automated that link and made it part of the same dashboard used for identity checks.”

iDenfy’s KYB tools are already being used by companies across finance, fintech, e-commerce, and crypto. The new SOS business search is now live and available to all users on iDenfy’s dashboard.