First thing you need to know:

What are you going to use your German Shepherd for? Family Dog, Schutzhund, Agility, Obedience, SAR, etc. Knowing this will help the breeder help you decide what pup would be right for you as well as if they are the breeder you should be purchasing from. A good breeder will match pup to person for the needs and wants that you desire. Remember a dog will only be what you train it to be! An untrained, un socialized dog can develop several problems not because of poor breeding or genetics! A breeder is only able to sell you a puppy with the potential and drive, you need to do the rest!

Next is the process of choosing a breeder that you trust and have confidence in. Some people breed because they have a sincere interest in producing top quality dogs and others breed because they want to make a few extra dollars.

All or Most reputable breeders will always provide lifetime of support for any questions or problems. They also want to stay in touch with their offspring. This helps them access how well they are doing and where improvements need to be made and how
successes can be repeated.

The last place to look for a puppy is in a pet store. The majority of the dogs that end up in pet stores come from puppy mills. Puppy mills are a legitimate business in many states. When you buy a pet or even shop at a store that sells puppies, you contribute to a heartless underground industry that forces dogs to spend their entire lives in cages constantly breeding to support consumer demand for puppies.

A great place to start is GermanShepherdPlanet.com where you can find several German Shepherd Breeders. Be sure to do your research! All reputable breeders will be able to give you references as well as want references from you! Do not buy from anyone who is anxious to sell with no questions asked!

Pedigrees and Hips:

A breeder should be familiar with the genetics of their own dogs.
In the German Shepherd Breed it is critical that all the breeding stock be OFAed. If a dog is not OFAed and it is being bred then the breeder should have a preliminary x-ray at the kennel or available at his vet to look at. The breeder should be prepared to show you the OFA certificate if you ask to see it. You can learn more about the ratings on http://www.offa.org/

Note** just because both parents have had their hips x-rayed does not guarantee that the pups will not have hip dysphasia. The point is that the odds in getting bad hips are less when you insure that all the pedigree has been clear.
The fact is hip dysphasia is in the GSD breed. Remember bad hips can just as easily be a result of what was done with the dog after it left the kennel. Over exercise (jogging) with a puppy will cause problems, over feeding a young pup and allowing it to get fat can cause hip problems.

The Guarantee:

All reputable breeders will guarantee hips, health, genetic disorders, etc. in writing and will usually replace a pup if necessary.