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How to know if a SEO company is reputable and can be trusted?
Only one way to find out. Try them out with a small job and see how well they do.
Some people say look at their own site page rank to get an idea, but I find this a bit silly as I'm not interested in my own rankings or page rank if I already have clients who are paying me to work on their rankings.
Why not try a small social bookmarking service and see how they do?
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The best way is to try them. Know the other using them if they achieve success. Look for sample websites they rank. Look also if there own website if its rank in their own keywords.