Can a convicted felon incorporate a domestic corporation?
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Can a convicted felon incorporate a domestic corporation?
White collar crime; criminal impersonation.
Asked on February 7, 2011 under Business Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Yes, a convicted felon may establish a corporation (or, for that matter, an LLC), as a general matter, so long as he is not subject to any contrary orders. (E.g. some settlements with the SEC or the Justice Dept. include stipulations regarding what the alleged or convicted criminal may do.) That said, there are some industries that a convicted felon might not be able to enter and/or have a controlling interest in a corporation in, depending upon the exact conviction and the regulations pertaining to that industry. If the individual is going to look for investment/investors, whether private or ultimately through a public offering, his criminal background could become a disclosure issue. However, getting back to the original point: a criminal conviction does not disqualify one from incorporating.
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