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Start on the internet by checking out national German Shepherd breed clubs like the German Shepherd Dog Club of America or the American Kennel Club.  Both of these sites provide detailed information on what to look for in an ethical breeder, and can point you toward more local resources. Do further research into these local German Shepherd breed clubs in your area. Whether you get information from their websites or contact them directly for help, local breed clubs are a great way to get the names of reputable breeders in your area. Veterinarians come into contact with a lot of different types of animal care-givers, from breeders to shelters to individual owners. Because they know so much about animal issues in the community, it's a good idea to talk to a few vets in your area for ethical breeder recommendations.  Also consider speaking to other German Shepherd owners, dog groomers, or dog trainers. If you visit a breed show, talk to owners and trainers about who they've had good or bad experiences with. A good breeder won't have a variety of breeds available for adoption. Look for a breeder who specializes only in German Shepherds. Your best option is to find a breeder who has years of experience with the German Shepherd breed. They should be able to answer your questions about development, temperament, and training easily and without hesitation. A key marker of a good breeder is the amount of effort they put into early socialization. Puppies need to be taught from an early age to live harmoniously with humans. If a breeder keeps litters isolated away from the home, the puppies will not be used to the sights and sounds of a normal household, and won't be used to human interaction. This can become a problem by the time they are old enough to be adopted. Make sure the puppies spend at least some time in the breeders' home with them. The more time they spend with humans, the more you can trust the breeder. An ethical breeder will never try to breed a female who hasn't reached sexual maturity — about 2 years of age. Mothers should also be given enough time to recover from pregnancies and being separated from their litters as they get adopted. Females should be healthy and alert. Never adopt a puppy from a breeder who breeds a young or unhealthy female, or who doesn't give mothers time to recover before breeding them again. Puppies should never be sold or separated from their mothers before 8 weeks of age. Before that, it’s unsafe to wean them from their mothers. The breeder should have begun the puppies' vaccination and deworming processes before adopting them out. Make sure that's happened, and ask about any health problems the vet may have reported in these early checkups. Ask if the breeders have their dogs tested for the Degenerative Myelopathy (DM) gene. This can determine whether a common inherited disease in German Shepherds is present in the litter's bloodline. Dogs with DM suffer from progressive paralysis, particularly in the hind legs.[5] Also ask the breeder whether the parents are "OFA certified" or "AKC Registered." You can ask to see certification for both parents from one of these organizations, but reputable breeders usually offer this without asking. Note that being AKC-registered does not mean that you are getting a healthy animal. It means that the owner paid money to the AKC to register the dog.  The Orthopedic Foundation for Animals (OFA), on the other hand, is interested in orthopedic and genetic health.  German Shepherds commonly have hip and elbow dysplasia. While experts recommend against breeding animals with known genetic problems, an OFA certification will give you proof. Be aware, though, that there's no guarantee of health in any animal. There's always a chance that two dogs free of known genetic diseases can still produce a puppy with genetic problems. The breeder should be evaluating you as a potential owner, just as you're evaluating him or her as a breeder. No good breeder will just hand over a puppy without being sure that the new owners will be able to provide it with a good, healthy life. Ask the breeder what they look for in a good owner, and whether they've ever turned potential owners away. The breeder should be able to answer these questions without even having to think about it. You might also ask the breeder for references so you can contact other families who have dogs from previous litters. A reputable breeder should ask questions about your dog background and experience, your lifestyle, and your family to guide you in making the best decision. As difficult as it may be, a good breeder will be willing to turn you away if they think you're a bad fit for their particular puppies. For example, if the litter has particularly inactive parents, the puppies may not be a good fit for your highly active lifestyle. If you get turned away, ask if the breeder can point you to other options and litters so you can expand your search. Also ask if they have any unborn litters coming up that may be a better fit for you.  Be patient and don't get discouraged. With enough patience and legwork, you'll find the right puppy. Don't lie to a breeder just to get a puppy, though. Trust the breeder's decision-making process. You don't want to end up with a dog who doesn't fit your needs. Avoid any breeder who offers to cut you a "deal," who has unclean or smelly kennels, or who acts suspiciously in any way. Trust your instincts. A breeder who's in it just for the money has the wrong motivation, and likely isn't interested in the welfare of their dogs.  Make sure the dogs are not crowded into cages. They should have plenty of room to stumble around and explore their surroundings. Part of the time, puppies should be kept in the home to expose them to household environments. There should be adequate food and water for all animals on the premises. Kennels should be cleaned daily. Although it may be that a dog had an accident just before you arrived, be suspicious of a kennel that looks like it hasn't been cleaned recently. All reputable breeders should be willing to take the dog back should things not work out with your family. If a breeder doesn't have a return policy, it suggests they don't really care what happens to their dogs once they leave their property. That's not a good sign! Also find out what kind of documentation you would get with your puppy. Would you get registration papers and pedigree papers? Negotiate for what you want if it's not included in the contract. Be very wary of a breeder who will not discuss the chance that a puppy may need to be returned.  Does the contract require you to take the puppy for a vet visit within a set time? Does it cover hereditary issues for life? For only a certain period of time? What kind of documentation will you need to provide to “prove” your case? What does the breeder agree to offer? 100% money back? Trade for another puppy when one is available? Are there restrictions on the activities you can do with your dog that will invalidate the contract or guarantee? Are you purchasing a show prospect puppy or a pet quality animal? Does the breeder have strong feelings (or even bans) about the vaccinations, foods or supplements for your puppy? Are these opinions based on solid science?

Summary:
Research and contact breed clubs. Talk to local veterinarians. Look for a specialized breeder. Ask how much time the dogs spend with humans. Make sure the females are bred ethically. Ask about the puppies' health. Determine the litter's bloodline. Inquire into the breeder's decision-making process. Answer any questions the breeder asks honestly. Learn the signs of an unethical breeder. Find out about the breeder's return policy. Read and negotiate the puppy health guarantee.