Option 2: A backyard breeder
A backyard breeder is one who has a dog that they decided they wanted to breed to make money on the puppies. Many times the dog they breed is pure, but sometimes they aren’t. You will occasionally find a backyard breeder who has bred two registered dogs and will have had the litter registered as well. Most often, when you go to look at the puppies, you will see the mother dog and occasionally, the father as well. If you find a backyard breeder with a registered litter, you may be able to get a puppy sooner than you would if you went to a registered breeder.
A backyard breeder with a registered litter is usually a safe bet to get a pure bred dog with some information on the dog’s history and lineage. Just make sure you check out the living situation to ensure that the puppies are being raised in a clean, secure environment. Usually, though, a backyard breeder is not one with a registered litter or even registered parents so, you are taking a risk that the puppies are fully what the breeder claims them to be. Some backyard breeders do not take much care in the puppies. They leave them in a pen and only check on them occasionally.
A puppy in this type of environment may not have much interaction with humans and, therefore, will need more work down the line to make them comfortable around people. Often times, the ads you see in the local newspaper are by backyard breeders. Just make sure to get as much information as possible and be sure to temperament test the litter.
More information from the ASPCA Backyard Breeders