It happens more than you think. Before you sign a contract. Before you start on a job. Before you supply a job with labor or material make SURE, no DAMN sure you know who you are really working with. Signing a contract with an entity that doesn’t exist, isn’t licensed properly, or misrepresents themselves could into a pure nightmare.
Yes it happens. Yes it will happen to you…unless you do your homework. Don’t just believe you know because others do business with them or because you’ve done business with them before. Check your state licensing division. Check your state department of commerce for business registrations. Check registrations in lien registries. Check before you realize you aren’t getting a check or to get one you have to take someone different to court.