It’s a sad truth that even after serving time, your past crimes will still have an impact on your life. That’s especially true when it comes to job hunting with a criminal record. Instead of struggling to get a job, why not create a startup business and be your own boss?
Starting a business with a criminal record comes with its challenges too, but it’s all things you can get around. If you choose the right industry, structure, and do everything right, you can succeed.
Besides basics like a startupbusiness plan and registration, there are some other things you’ll need to do too. Read on to find out how you can start a business with a criminal record.
There are no laws against felons owning a business, but some industries are off-limits. You need to be careful that your business won’t have activities classified as offenses. According to Thomas C. Grajek, Attorney At Law, certain offenses score extra points and may lead to a mandatory prison sentence.
Requirements for things like business licenses may also limit your options. For example, you won’t be able to start a plumbing business since you can’t get the necessary insurance to protect your customers. Some common startup business options for ex-felons include:
- Sales Consultant
- Website Designer
- Information Marketer
- Poultry Farmer
If you’ve decided on a business idea, you may need to consider having a partner. A partner comes in handy, especially when you’re looking for funding. You might not qualify for some loans and business grants because of your record, but your partner might.
Of course, this doesn’t mean that you should represent your partner as the sole company owner only to get funding. Your involvement in the business should be clear, as required by law. Having your partner as the front liner should only make your criminal record less of an issue.
Getting a business partner isn’t the only solution for funding. Some organizations offer business loans and grants for felons. Although they may have strings attached, you can find some good options.
While such places don’t screen felons, they might not fund any with a history of financial crimes. Other startup funding options you can try are Kickstarter campaigns and GoFundMe.
LC, S-Corp, or C-Corp
The easiest thing you can do is form your company as a limited liability company (LLC). With this structure, the company’s liabilities and assets are separate from the owners. It also helps you distance your criminal record from the company, so it doesn’t affect its reputation.
Starting a business with a criminal record can seem impossible, but with a little work, it’s doable. You’ll need to go over a lot more hurdles than anyone else starting a business, but other than that, it’s all the same. All you need is dedication, patience, and a good startup business idea.