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I have helped many business owners with legal issues start a business. They have successfully competed for and won government contracts. The simple answer to your question is yes. Your felony conviction will not prevent you from starting a business or winning government contracts. The biggest issue you will have is if there is a need for a security clearance on the contract. City, county, and state contracts would be easier than federal. If needed, we can schedule a follow-up call to discuss further.
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