Every person grows up wanting to own their own company, whatever it may be. Sometimes the opportunity presents itself and sometimes it is harder than it may look.
If you are living your life with a felony it can be even more difficult. As a felon you are constantly faced with issues trying to find a job let alone starting your own company.
Can a felon own a business? A felon must know there are zero federal laws restricting them from owning a business. However, there are many restrictions and hoops a felon must go through to obtain things like a surety bond.
In simple terms, business is a person’s regular trade, occupation, or profession. Owning a business consists of running an establishment or organization that produces or sells a service and or products.
There are two types of businesses. There are non-profit as well as for-profit.
A non-profit organization typically is working towards a particular social cause. The non-profit may also advocate a shared point of view. Non-profits often rely on a grant from the government to get up and running.
A for-profit organization is seeking to make money. Think of any typical establishment.
Commonly a business structure is a sole proprietorship. This simply is a term for the person who owns the business and is responsible for all of its debts. Some businesses are a partnership or work as a corporation. There is also a limited liability company. An LLC is one that combines the benefits of a corporation and a partnership.
Felons Owning a Business
As previously mentioned, there are no federal laws that state a felon cannot outright own a business. It may not be the easiest journey, but it is not impossible.
Felons may be prohibited from owning certain businesses. This could be in regard to licensing requirements. As well as what exact type of business one is trying to create.
The licenses that are required for certain businesses vary. For instance, as someone with a crime related to drug or alcohol offense, they may not be able to obtain a liquor license. A liquor license is a requirement for any establishment looking to sell or serve alcohol.
Bonding can be affected if you are a felon. As an example, a surety bond is needed for some businesses. A surety bond is a form of insurance policy that is put in place to protect customers.
As a felon, if you cannot obtain a license or bond you will not be able to own a business.
It is important to seek legal advice with any questions regarding a license or bond.
One option for a felon is to own a franchise. A franchise is the act of using a particular business model or brand in more than one location. You are probably very familiar with franchises. McDonalds and Starbucks are examples of two very well-known franchises.
This is a business that is purchased from a company. A license will be required to open one.
A company will mainly be focusing on a person’s credit standing. Previous experience and business endeavors will also be looked at.
Due to your past as a felon, your credit may have taken a hit. A low credit standing will not benefit you when you try to get a franchise. There are ways to improve your credit standing. You should attempt to raise your credit before trying to start a franchise.
A low credit standing can accompany financial hardships. This can result in it being a struggle to finance the franchise. If you would like to start a franchise you should make sure your credit rating is in good standing.
Franchises can be very rewarding! It also helps that franchises are typically well-known. Therefore, customers will come without too much of a struggle to get them there.
Starting a Business
Another option as a felon is to start a business from scratch. This may be something you have always thought of doing or a fast idea you are willing to work on!
Thousands of businesses are started every year. A felon must know there are zero federal laws restricting them from owning a business. There are a few steps you can take to help to improve your chances of being a successful business owner.
It is best to start a business in something you have previous experience or extensive knowledge in. Though it may seem obvious, it is crucial. This will give you all of the knowledge and necessary skills to be successful.
As an example, someone who has previously worked in a restaurant may consider starting up a restaurant.
If you are interested in starting a business in an industry that you have no prior experience in, it may be helpful to find a job in the industry first. This way, you can start to understand the industry a bit more. It also may help you to determine if you actually want to be in that industry or not.
Of course, having a solid business plan is crucial. You can also decide whether or not you want to bring on a partner or not. Sometimes having a partner can be very beneficial while other times conflict can arise. Just doing what’s best for you is what matters most.
Though it may be very difficult, it is not impossible for a felon to start a business.
Owning a business consists of running an establishment or organization that produces or sells a service and or products. There are two types of businesses. There are non-profit as well as for-profit.
There are no federal laws that state a felon cannot outright own a business. Whether you decide to own a franchise or start a business on your own, it can be very rewarding.
Don’t let your criminal history stop you from living the rest of your life! Explore your options and you could be a successful business owner in no time!