Business License Scams: A Barrier for Reentrants

By Research Department on April 16, 2018

It can be hard for a person starting over in life to earn a living — especially if he or she is reentering society from prison. That’s one reason why many reentrants decide to use the trade skills they’ve learned to go into business for themselves.

But local consumer protection agencies have told the FTC about scammers who lie about being able to help people get professional or business licenses to start barbershops, hair salons, auto repair shops and other businesses. These con artists people in different ways and some say they issue licenses themselves. Many reentrants don’t believe they will ever get a business license through the usual channels. That makes them vulnerable to scams.

Some reentrants may find themselves frustrated by occupational licensing regulations that don’t make sense. Maybe their trade is licensed in some states, but not others. That’s confusing.

If you’re looking to get a professional or business license, here are three things you should do before you pay anyone money:

Check with your state or local government first to learn how to get a professional or business license. The requirements and fees depend on the type of business you’re starting, where it will be, what services you will offer, and government rules. Also, the Council of State Governments’ provides detailed information on licensing restrictions based on your record and the type of license you’re seeking.
If a company says it can issue you a professional or business license, check it out first. Typically, government agencies issue professional and business licenses. Contact the agency that oversees licensing for your trade to see if the company is legitimate. You also can search online using the company’s name and the term “scam.”
Visit the for information on licensing and starting a small business.

If you spot a situation where professional licensing doesn’t make sense, let us know. Sometimes, excessive occupational licensing is an unnecessary barrier to jobs, entrepreneurship, and economic opportunity – and doesn’t really protect public health and safety. The is studying these issues, and would love to hear your story.

For more information on scams targeting entrepreneurs, go to . For more information relevant to reentrants, visit . And if you know about a business scam, tell the FTC or at 1-877-FTC-HELP.

This article by the was distributed by the .

READ Free credit freezes are coming soon

The post appeared first on .

Last step, fill out the information below or call us for Priority Assistance.

What may we help you with?

How much do you owe?

What is the status of your payments?

What type of student loans do you have?

What is the status of your loans?

What type of tax debt do you have?

How many years have you owed taxes?

Are you currently enrolled in a payment program with the IRS?

What problems are you having with your report?

Late Payments

Bankruptcy

Charge offs

Debts that are not yours

Collections

Errors on your credit report

Other

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.

Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.

Your email is required.

Your phone is required. Your 10 digit phone number is required.

Your state is required.

Your age is required. Your age must be between 18 and 99. Your age must be greater than 18. Your age must be less than 100.

I agree to the terms below.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s and and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.