The major search engines and local business directories include free business listings. A quick way to check if you are taking advantage of these is by going to getlisted.org and typing in your "real" business name and zipcode. After a few seconds you will see your "listing score" on 6 different search engine websites, including Google, Yahoo and Bing.If you click on "To Do" in the left menu next to your results you will see how the score is determined and things you can do to take better advantage of the free listings at these 6 search engines. There is also a lot more you should do as well, such as add a business description, update and/or add categories for your products and services, add your website address if it doesn't exist, etc..
This is by no means a complete list of all the local search directories, such as YP, SuperPages, InsiderPages, YellowBook, CitySearch and more. All of these allow businesses to claim and update their "free" listings. Plus, by actually checking your business listings you may find incorrect information and by claiming your listing you can correct the errors. One thing to note, if you have multiple locations you have to do this separately for each location.
Last, you can listen to my recent radio interview with Dave Foster about this and other local seo advice on TalkFloor ... http://www.talkfloor.com/interviews.aspx?interviewParentID=467
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