• Post category:Resources
  • Reading time:5 mins read

When a person has been charged with a felony conviction and has spent time behind the bars, transitioning to regular work by finding jobs hiring felons is difficult. If facing difficulties in reentering the workforce, felons can set up a business. 

A felon can definitely establish an LLC or a business. But this is accompanied by a downside as well. Being a part of certain business specific endeavors is going to be a difficulty. In particular, this includes the ones where a special license is called for (medicine, finance, law, and dangerous materials).

In this article, we learn more about matters such as how felons can set up a business, the restrictions that they would have to deal with, and why setting up an LLC works the best for them.

Is setting up a business with a criminal record possible?

This is a frequently asked question. In most cases, a felony record is not going to hamper someone from setting up a business. If you intend to launch yourself and work as a single proprietor, all you need to do is to sell stuff.

Now the question arises that if one is a felon, should one be operating as a single proprietorship? Is this one the best choice for the individual? Not necessarily in all cases.

The best way to expand your company and go beyond your past is to set up an LLC.

What is an LLC?

An LLC is a Limited Liability Company. It is a company structure vastly preferred by entrepreneurs. LLC not just brings into the picture the advantages that come in with heading a corporation. These benefits are combined with tax possibilities and adaptable management style of partnership or sole proprietorship.

Top advantages of LLC include streamlined administration, liability protection, and “pass-through” taxes to the owners, who are also the members.

Why setting up a LLC is a particularly attractive option for felons to set up a business:

  • Liability limitation

LLC provides asset protection to ensure that your assets will not be in danger in case your company is sued.

  • Credibility

Sole proprietorship is undocumented but nevertheless does not enjoy the legal standing that an LLC does. When you put in the effort to create an LLC, it sends out a message to prospective investors and also the clients that upon being set up, your company is compliant with the state laws.

  • Privacy

You may choose to avail of a registered agent service to have their name and address used on all state filings. This lets you live quietly with an LLC. Furthermore, this lets your firm stand on its merits, even as you maintain an anonymous identity in public records.

  • Funding

When a felon applies for finance, background checks will be likely conducted on the individual. This makes getting capital for your company complicated. However in an LLC, many members group together and combine resources to together launch a business.


Contact ReeCareer today for sound financial, career, job advice, and housing for felons. We understand that felons may require support for rebuilding his life and offer resources for the same. If you are a felony conviction looking out to start fresh, we can help with resources required for how felons can set up a business. Resources made available at ReeCareer include rehabilitation programs for felons.

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