Underground economy businesses refer to economic transactions that are deemed illegal, either because the goods or services traded are unlawful in nature.
Or because transactions fail to comply with governmental reporting requirements.
An underground economy business also refers to simple, little known extra cash gigs that people all around you are doing.
These businesses, if they aren’t reported to the government, may escape rules and regulations, taxation and enforcement penalties.
For example, California is changing laws to regulate and tax Uber and Lyft drivers because they are independent contractors, thus may be escaping regulations and taxation.
Governments and some honest, law-abiding citizens do not like these business operations.
Like it or not, with over 16 million people unemployed, people will get more creative in finding ways to “pay the bills”.
In many cases, underground economy business activities will expand as unemployment increase.
For example, as the costs of maintaining normal food and household expenses increase due to the coronavirus and layoffs, some people are looking for ways to skirt the law, to feed their families and keep a roof over their heads.
A few businesses such as grocery stores and Amazon are hiring more workers and independent contractors due to the pandemic.
Beyond that, there are no employers hiring some workers “under the table” because of shuttered businesses and shelter-in-place laws.
The businesses that the tax man is looking for are usually somewhat visible, with visible tangible assets or inventory movements that can be evaluated with a dollar amount.
For example, If a liquor store has $100,000 in inventory on the shelves and a liquor license that cost $100,000, an owner who reports a profit of $22,000 will probably be audited.
A self-employed hair stylist who reports an income of $16,000 but drives a $70,000 BMW and lives in a $2500 a month apartment is asking for trouble.
Especially if her appointment book, full of appointments, is in plain view for a tax man to see.
The list that follows is not by any means complete.
That’s because there are thousands of little businesses that people start every day.
People just like you, from their home.
In fact, most of these underground economy taskers have many of these businesses going at any one time because they’re hustlers.
It’s harder for a tax man to keep up with someone with 10 little “tasks” going on and who doesn’t attract attention with a showy or loud lifestyle.
Here are 30 examples of underground economy businesses, or extra cash activities that can be run out of your home, or even from your cell phone
Each of these can be modified into several more examples:
These should get your creative entrepreneur juices flowing.
You should be able to look at that list and come up with at least 50 or 60 more.
I didn’t even mention crafts and craft fairs or a bunch of car or pet ideas.
Plus, there are more ideas scattered around this web site.
What you are really looking for are a few businesses that you can start, with your own knowledge, skills, abilities and talents.
Many well-known entrepreneurs got started by using underground economy methods.
They raised enough money to start their business, which turned them into wealthy business owners.
The real secret to success is this: Get started today, doing something.
Today’s job loss will lead to tomorrow’s success.
Now, there is no reason you couldn’t turn any of these into legitimate, tax paying businesses.
Then you can stop running from the tax man.
In order to make it easier for you to get started quickly, I’ve listed bonus ideas below for 4 easy-to-start but profitable businesses or extra cash activities.
One of them could work for you because they are already working for thousands of people just like you.
Choose one now and get your creativity working for you, so you can finally start making money from your own home based business.
Here are simple and cheap ideas for 4 easy-to-start and profitable underground economy business opportunities for extra cash:
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About: I’m the author in residence of RuralMoney.com bringing you the best of my knowledge, skills, abilities, tips and resources. Unfortunately, I am also a person with disabilities. I have severe Rheumatoid Arthritis. I love to share what I know and practice to help others survive and thrive in rural areas.
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