# Working for yourself

Nobody runs a background check on the owner. That part is real. Nobody warns you about the payment processor.

## Why people end up here — Nobody runs a background check on the owner

A lot of people end up self-employed after a federal case, and the reason is that simple.

That's real, and it's why self-employment is one of the better paths. But there's a set of problems nobody warns you about.

## The big one — Getting paid

Payment processors underwrite you like a bank does. Stripe, PayPal, Square, and the rest can and do decline or shut down accounts over a fraud conviction, especially a financial one.

It usually happens after you're already running, which is worse than being told no upfront.

Read the terms. Expect to end up with a higher-cost processor that specializes in accounts other people won't take.

## Same fight, second round — Business banking

Same screening systems as personal banking, same problem, same fix. Credit unions and smaller banks will actually talk to you.

If you have not been through the personal version of this yet, it is in [Banking and credit](/getting-out-of-federal-prison/opening-a-bank-account).

## Depends on the trade — Bonding and insurance

These get complicated depending on what you do. There's a federal bonding program built for exactly this situation, and most people have never heard of it.

Worth looking into before you assume you can't get bonded.

## Depends on your state — Licensing

Entirely a function of your state and your industry. That one has [its own part](/life-after-federal-prison/professional-licenses-with-a-felony).

## While you're on paper — You need your PO's approval

Self-employment gets more scrutiny than a W-2 job, because it's harder to verify income. Expect to hand over books.

Some conditions (the rules you live under after release) restrict the kind of business you can run, especially if your case involved money or computers.

Ask before you build something, not after.

### [Licenses](/life-after-federal-prison/professional-licenses-with-a-felony)

Every state and every profession handles this differently. A five minute phone call to the board can save you a year.

**Need help with this? Just ask.**

These pages cover the general rules. Your situation has details they don't. Email me a question. **Answers are free** , and "you don't need to pay anyone for this" is my most common answer.

[josh@federalprisondude.com](mailto:josh@federalprisondude.com?subject=Once%20you%27re%20out%20question)

I answer in the order received, usually within a couple of days. I have a day job. If your situation genuinely needs more than an email, I take a limited number of consults, so say so and we'll work it out.