It doesn't matter whether or not it's fair. What matters is whether or not it is legal. Life is unfair. No one is guaranteed by right any kind of licensing. No one is guaranteed by right a job.
There are plenty of employers who are willing to take a chance on someone who has made a mistake in the past as long as they are willing to admit to it and confirm that they have learned their lesson. I wouldn't try applying for a job that has a direct corrolation with whatever it was you were convicted for; if you were convicted for embezzlement, I wouldn't try to get a job as a bank teller; if you were convicted of shoplifting, I wouldn't go applying at a retail store. But if you are honest about what happened; if you assure a prospective employer that it was a one time deal that will not happen again; sooner or later someone will give you a chance.
DO NOT lie about it. As you say, it's much too easy for employers to find the information. While there are employers who will overlook a conviction, few if any will forgive lying on your application. If you are caught, which is all too likely, that's grounds for getting your application placed in the Do Not Hire, Ever pile; if you have already been hired when the falsehood is caught, it's grounds for immediate termination. Whether, in that instance, you would qualify for UI is anyone's guess, but I wouldn't hold my breath.
As for starting your own business, that's a rough go at the best of times and under the best of conditions, and I speak from experience. I wouldn't put all my eggs in that basket, at least initially, unless you have enough money put aside to live on for at least six months, and I somehow suspect if that were the case we wouldn't be having this conversation. I'm not trying to discourage you; by all means give it a try. But you're not going to be making enough to live on right away. That I can promise you, unless you've got either (a) better marketing skills than Proctor and Gamble or (b) the makings of the next national fad that will catch the attention, and the wallets, of everyone in the US within the next month.
You're going to need to keep trying to find at least part time work if you expect to get by. Sorry I can't be more encouraging, but as I say I speak from experience.
