How do I know if a company is legitimate?

[Toblerone345]

I'm considering applying for a job, but as it's with a fairly small company I've done a bit of digging around online - I don't want to change jobs only to end up not getting paid or for the company going bankrupt in a couple of months.

I've looked up the director on Companies House he has been a director of a few businesses, some dissolved, some still ongoing. I've checked the company accounts and they don't seem to have made much profit, but as I understand it this is fairly normal for a business in the first few years of its life. Does anyone know how I can make sense of this or am I going to have to take a leap of faith?

None of that info tells you if it’s going bankrupt next week though.

Sometimes you have to trust your instinct and take a job because you like the sound of it and it meets your requirements. Lots of companies will be in trouble in the next few years. If it’s in a sound area of continued work then that’s pretty good. Making a profit will be even better. I would judge more on their line of business, track record in business and whether this business is likely to grow or stagnate in the future.