Do you want to start a tax-free business but you lack ideas on what to start? If YES, here are 50 best tax free business ideas / opportunities for 2018.
In as much as taxes are necessary for the government of a country to function and meet up with its obligations to the people, taxes are seen by some business people, especially small business owners, as one of the challenges they face while growing their businesses.
As a result of this, the government of the United States of America and of course some other countries of the world have created tax free havens for some small businesses especially the ones that are solving basic problems in their communities.
What is a Tax-Free Business?
Tax exemption or tax free businesses refer to a statutory exception to a general rule rather than the mere absence of taxation, otherwise known as an exclusion. Tax exemption also refers to removal from taxation of a particular item rather than a deduction.
In the United States of America, the tax-free threshold is $18,200 for individuals. A sole trader business structure is taxed as part of your own personal income – you are required to pay income tax at individual income rates. It means that if your business is generating $18,200 or less per annum, you are exempted from paying business tax. As a matter of fact, a host of online businesses are tax free not just in the United States of America but all over the world.
Most countries of the world do not tax entities organized to conduct retirement investment and pension activities for employees; and many countries also provide tax exemption for personal pension schemes.
There are quite a number of tax free businesses in the United States of America, and if you are interested in starting a tax free business, here are 50 businesses that you can successfully start.
50 Best Tax Free Business ideas & Opportunities for 2018
- Start a Ghost Writing Business
Becoming a ghost writer or starting a ghost writing business is one of the best tax free business ideas that can thrive in the United States if America. If you are a gifted and creative writer, you can do pretty in this line of business. There are a host of people out there who are overdue to author at least one book but they can’t due to their very busy schedule. All you need to do is to collect their thoughts together and put them into a book. Although your name might not appear in the book, but you are sure of being rewarded adequately for your services.
A freelance writing business is no doubt one tax free business idea that can be started in the United States of America. If you are a creative writer and you have enough time at your disposal, you can earn good income from freelance writing business.
There are loads of websites where you can secure high paying writing jobs. Some of these sites are freelancer.com, upwork.com, guru.com, elance.com et al. As a matter of fact, you can recruit other freelance writers to work for you when you have enough writing gigs.
Buying and selling stuffs on eBay is yet another money making tax free business idea that can be started in the United States of America. Ebay is an internet platform that you can buy and sell your stuffs on. All you need to do is to sign up for their services, play by their rules in listing and selling your products and be extra careful when dealing with your clients. If you have good negotiation and marketing skills, you can actually buy a product on eBay and sell the same product two times the price you purchased the product for.
- Video Editing Services
A video editing service is another tax free business that an aspiring entrepreneur can successfully start in the United States of America. Although it is easier for people to post armature videos on social media platforms these days and still get several likes, but if you are in the business of selling resource video materials, then you must endeavor to be professional with the videos you put up for sale. As an aspiring entrepreneur who has video editing skills, you can list your business on the internet and you can as well source for clients from the online community.
- Sale of Tickets for Events
Selling of tickets for events is yet another easy tax free business that can be started in the United States of America. People usually purchase tickets in order to watch live sports events or attend musical concerts, comedy shows and the likes.
Trust me, it is a cool way of making money in the United States of America and not bother with paying tax especially if the business is on a small scale. Please note that this type of business is based on commission; the amount you are expected to make is dependent on the number of tickets you sell. So in order to make more money, you must ensure you sell more tickets.
- Offer Voiceover Services
As an aspiring entrepreneur who is looking for a tax free business idea to start in the United States of America, your good voice and excellent diction is an asset; with it you can generate extra income for as long as you are willing to work. It is simple, all you need to do is to Google voiceover outsourcing jobs and you will see loads of them. Ensure that you read through them and pick the ones you can handle. As a voiceover artist, you can sign up with an advertising company and they will help you secure voiceover jobs.
A book club is yet another tax free business that can be started in the United States of America. Book clubs are a group of people coming together to discuss a book or books that they have read or the books they are currently reading. It is cheaper to start and to run a book club, but you have to be creative if you want to make money out of your book club.
Aside from the membership fee you will collect from people who want to join your book club, you may also have to consider starting a sales book club; with a sales book club, you will be able to sell books at a discount price to your members and of course your members will be the first set of people to get newly released books from your stable.
- Become a Translator
Becoming a translator is yet another tax free business that can be started in the United States of America. As an aspiring entrepreneur, if you can speak and write two or more languages whether foreign or local languages, then you can comfortably list your services online as a translator.
There are many authors of books and producers of films who wouldn’t mind translating their books to local dialects or other foreign languages once they can get someone to do it for them at an affordable fee. You can visit elance.com, freelancer.com, oDesk.com and other freelance sites to source for translating jobs.
Depending on the scale you want to start this type of business, on the average you are not expected to pay tax when you run an ice block making and sale business on a small scale from your house. With an effective ice block making machine, all you need to do is to employ a sales person who will help you handle the business.
There are loads of businesses like soft drinks mobile truck/cart business, smoothie and juice trucks et al that depend on the supply of ice block to keep their business moving. So, if you are looking for a tax free business to start in the United States of America, then you should consider starting an ice block making and sale business.
- Editing and Proof Reading Business
Another tax free business that can be started in the United States of America is editing and proof reading. Aside from the fact that editing and proof reading business is tax free, it requires little or no startup capital to launch. The nature of this business makes it easier to work from home and for clients who are thousands of kilometers away from your country.
If you are a good editor and you have an eye for details, then you should consider visiting freelancer.com, elance.com, oDesk.com et al to enroll and become a member. From such platforms, you can get enough editing and proof reading jobs that you can handle.
A home tutor business is yet another tax free business idea that can be started in the United States of America. This type of business is ideal for an aspiring entrepreneur especially if he or she has a flair for teaching and imparting knowledge.
Parents engage teachers to teach their children at home hence the need for home tutors. So if you are good at teaching, then you should consider starting a home tutor service and you can as well recruit other like minds to work for you especially when you have more teaching jobs than you can handle.
- Sale of Call Cards and Data Bundles
Selling call cards and data for different networks is another best tax free business idea that can be started in the United States of America especially if the business is started on a small scale. Asides from people that subscribe to post-paid packages, most people buy call cards and data on a regular basis.
Depending on the country you reside, there are several telecommunications companies that you can deal in their call cards and data bundles. Selling call cards and data bundles is a simple, easy to establish retail business that does not require any skills. As a matter of fact, this type of business can thrive in any location as long as there are people who make use of mobile telecommunication and the internet.
If indeed you are a social entrepreneur who has ICT skills and you want to start a tax free business in the United States of America, one of the thriving and profitable social enterprise that you can launch is a crowdfunding website. Crowdfunding websites are a funding method where common people like you and me can raise funds for our personal, charity or business projects. You might want to ask how you are going to make money from this type of business. Of course, you will get some percentages of the amount raised per project as your profit for providing the platform.
If you are a relationship expert or passionate about relationships and you are looking towards generating income from your passion, then you can start a match making website; an online community where you can help people looking for partners to meet.
Your duty is to create the enabling environment and you can make money by charging membership fees from aspiring members. Aside from membership fees, you can also sell your products (books, CDs, DVDs et al) if you have any. You can as well make yourself available for those who would require professional counseling especially as it relates to relationships.
There are several strategies that an organization can employ to reach out to their target markets and one of them is online marketing. If you have your own products or you choose to sell other people’s products, the internet is one of the cheapest and perhaps easiest ways of marketing your goods.
All you need to do is to sign up with an organization and they will assign some leads to you, your duty is to follow up on them until you generate sales from them and then you will be paid your commission tax free in most cases. Following up on them could be sending reminder emails, chatting with them and also video calling them et al.
- Start an Online Skill Acquisition Training
As earlier stated, there are a host of online businesses that are tax free in the United States of America and online skill acquisition training is one of them. The internet has made it possible for professional trainers to make money via training people without ever meeting them physically.
For example, if you want to train people on how to make hats or how to make bags or how to make beads et al, all you need to do is to engage them on video chatting. You can as well send your videos and your training manuals online to them after payment. Distance is not a barrier as far as the internet is involved and you can generate good money from this type of business without paying tax.
- Start an Online Foreign Language Training/Tutorial Services
If you can speak and write more than two international languages, then you can make money from offering online foreign language training/tutorial services. All you need to do is to list your services online and people who need the services your offer will contact you.
Just ensure that you have resource materials (softcopies that can aid your teachings). If you know how to speak and write 2 or 3 of any of these languages; French, English, Spanish, Chinese, German and Arabic, then you should consider starting an online foreign language training/coaching service.
- Create and Sell Online Wallpapers
Creating and selling online wall papers is yet another tax free business that can be started in the United States of America. No doubt this business is good, but you are not likely to make huge profits from it; at the same time it is a business that will not take your time and it is tax free. This is a business you can do while keeping your paid employment or handling other businesses.
- Start Selling Resource Videos Online
YouTube and other video publishing sites online and some of the internet platforms you can leverage on to sell your videos. If you can produce videos to teach people how to do stuffs for themselves, and put them online, you will be amazed at the rate people will be placing demand from all over the world for the video. So, if you are looking towards starting a tax free business in the United States of America, then you should consider producing and selling resource videos online.
- Open a Pay Per View Website
People are always on the go especially people that live in busy cities of the world, but that should not stop them from watching live football, basketball and any other games. If you are able to secure permits to stream live matches, you will sure attract loads of clients from all over the world. Just ensure that you have a well – secured payment platform.
- Start Teaching People How to Cook Online
If you are good with making both local and international dishes, one of the tax free businesses that you can start in the United States of America is to teach people how to cook. You will be amazed at the high level of response you will get if you list this service online. Aside from online, you can also market your services amongst people in your community and make use of your kitchen to teach them how to cook.
In recent time, people are beginning to buy into the idea of using cryptocurrency to transact business online and good enough, it is a tax free business for now in the United States of America. You would have seen people buying and selling cryptocurrencies like Bitcoin, Swiss – Gold et al. The truth is that you can actually start this type of business in the United States of America, trade with clients all across the globe and in the long run make huge profits from the business.
Starting an online music streaming and download website is another tax free business idea that can be started in the United States of America. If you are considering starting your own music streaming business, the first rule of thumb you must obey is to own a desktop computer or a laptop with the speed and capacity that can support live streaming.
Computers are configured for various purposes, so be sure that yours is configured by an expert for this purpose. Having only a computer without an internet connection might be useless; reason being that you would need to be on the web to run this business.
Another tax free business that can be started in the United States of America is Amazon FBA business. Fulfillment by Amazon, which is often referred to as Amazon FBA is a fulfillment choice for sellers on Amazon which allots fulfillment for sellers’ products to Amazon. Amazon sells its own inventory on the marketplace alongside products from outside sellers.
When a product from a third-party merchant is purchased on Amazon, who ships that item depends on the fulfillment method selected by the retailer. FBA products are sold by third party merchants, and need to be labeled and shipped to Amazon warehouses before Amazon can handle fulfillment using FBA. Amazon offers two labeling options for FBA, both which come with variables that may affect profitability and time.
- Vehicle Licensing Brokerage Services
A vehicle licensing brokerage service is no doubt one of the tax free business ideas that is thriving in the United States of America. Vehicle license and other relevant vehicle documents usually expires annually, hence there is room for renewal at least once in a year; it is a crime to drive a vehicle whose documents have expired.
Starting a vehicle licensing brokerage service involves helping individuals and corporate organizations carry out their vehicle license renewal. This type of business can be successfully combined with other related brokerage businesses and you will make cool cash without paying tax.
- Start a Real Estate Brokerage Services
Becoming a real estate broker is yet another tax free business idea that can be started in the United States of America. A real estate agency (brokerage firm) usually receives a payment called a commission for successfully matching a seller’s real estate with a buyer’s real estate need; such that a sale or rent/lease can be made.
In most cases, the commission generated is shared with other real estate brokers or agents who played their parts in ensuring that the property is sold or rented out as the case may be. It is important to state that in the United States of America, each state has own unique laws that clearly define the types of relationships that can exist between real estate agencies and property owners.
- Start an Adult Education Center
In most states in the US, this type of business is tax free and as matter of fact they even get support from the government of the United States. There are men and women out there who for one reason or the other did not attend formal schools hence they can’t read and write.
These people now have the opportunity of going back to school, thanks to adult education. If you intend awarding recognized certificates/diplomas in your adult education center, then you should apply for accreditation and license from the education board in your city.
Offering lawn care services howbeit on a small scale is one of the tax free businesses that an aspiring entrepreneur can successfully start in the United States of America. This business is easy to start and manage, the basic equipment needed to start this type of business are lawn mower, shovel, rake, wheelbarrow, shears et al.
The lawn care and maintenance business falls in the category of seasonal businesses, and the industry experiences downtime during the winter in most states in the US. The demand for lawn care services is usually at its peak in the spring between April and October. This is why lawn care companies are always everywhere sourcing for lawn care business deals within this period of the year.
A plumbing business howbeit on a small scale is another tax free business idea that can be started in the United States of America. In recent times, it appears that plumbers are difficult to come by; and the plumbers that are available in most communities are not enough to service the community. You would need to acquire a plumbing skills if you intend starting a plumbing business. This type of business can be successfully run alone or with one or more employees especially if you want to enjoy paying tax off the business.
Home painting on a small scale is yet another lucrative tax free business idea that an entrepreneur can start in the United States of America. One of the easiest ways of improving the appearance of your home is to paint your house. This goes to show that there is indeed loads of business opportunities for professional painters.
So if you are looking towards starting a tax free business in the United States, a business that requires very minimal startup capital and a business that you can successfully operate alone or with one or more employees, then you can start the home painting business. It is important to state that you would be required to acquire training as a painter before you can successfully launch this type of business.
A roof maintenance and restoration business on a small scale is yet another tax free business that an aspiring entrepreneur can successfully start in the United States of America. Roofs are subject to wear and tear due to exposure to hash climatic conditions which is why after a period of time you will find out that a roof is leaking when it rains.
It is the duty of roof maintenance and restoration companies to help fix these leakages and also replace worn out roofs. Please note that even though you are not expected to pay tax from earnings from the business, you will have to pay personal income tax.
A photography business is yet another tax free business one can start in the United States of America. In order to enjoy tax freedom, then you should operate your photography business from your home. You are expected to go out to cover events and make money. Please note that in most states you are still going to pay personal earning tax.
Dogs breeding business on a small scale can be tax free in the United States of America. Amongst domestic animals, dogs are considered to be one of the closest companions to humans. Dog breeding business is a lucrative business especially in countries where people value dogs.
Dogs are used for hunting, for security, as pets, for games and in some climes as a major source of protein. If you are looking towards setting up your kennel, ensure that you source for dog breeds that are highly marketable in your area. It is important to state that it is easier to sell puppies than to sell adult dogs.
Starting fumigation services on a small scale is yet another tax free business that can be started in the United States of America. Fumigation is done to eliminate unwanted insects, and weeds. It is a profitable business venture that is easy to setup and manage. If you are looking towards starting a fumigation business, then you need to apply to the appropriate authorities in your country to secure the required chemical handling permits and license.
- Music, Movies, Computer Games and Apps Download Center
Another tax free business that can be started in the United States of America is a small scale business center where people can download music, movies, computer games and apps. What is needed to start this type of business is a laptop and the willingness to work; it is a business that can be successfully launched with very minimal startup capital. This type of business if well managed will surely yield good returns on your investment and you can actually run this type of business without renting a shop.
- Become a Forex Trader
Forex trading just like most online businesses is tax free; you can successfully start this type of business in a small town. Trading currencies online can be a risky venture but it is indeed a very rewarding online business. If you have good analytic skills and you have sound knowledge on cash flow and the exchange market, you can do well as a forex trader. You can Google forex trading platforms and tutorials to learn how to become a professional forex trader.
- Community Vigilante Group
Community vigilante group is one of the tax free businesses that an entrepreneur who has who has had military or security training can consider starting in the United States of America. The main duty of community vigilante groups is to provide security for a specific community especially at night. You would have to apply and obtain permits before your vigilante group can start carrying arms legally and you may have to confirm if this type of business is tax free in the state you want to start the business.
- Garage Sale Business
A garage sale business is yet another profitable tax free business that an entrepreneur who is looking towards starting a business in the United States of America can successfully launched with little startup capital. Consignment business or garage sale business is all about selling used stuffs like electronics, shoes, clothes, caps, bags and kitchen wares et al in your garage.
- Start a Football Jersey Customizing Business
Starting a football jersey customizing business on a small scale is a tax free business that can be started in the United States of America. Of course, you would have to learn the trade, but trust me it is not a trade that is too difficult to learn and you can learn it within 24 hours especially if you already have keen interest.
Top basketball, baseball, football clubs et al have a fan base from all over the world hence the high rate at which they sell their jerseys. Part of what you would need to get this type of business rolling is some good graphic skills and a business network that can help you access quality jerseys at affordable prices.
- Become a Tour Guide
Becoming a tour guide is no doubt another tax free business idea that can be started in the United States of America. All that is required to successfully launch this type of business is to ensure that you can speak at least one or more foreign languages; it could be English, French, Spanish, Chinese, Portuguese or German. Furthermore, you must also know the terrain pretty well.
Once you are certain that you can effectively translate or interpret, then all that is expected of you to do is to position yourself in places where you can have access to tourists; it could be in a hotel lobby (you would have to negotiate with the hotel manager) or via referrals from a travel company.
- Open a community Museum (Arts and Culture)
If you are interested in arts and culture, one tax free business you should consider is to open a community museum; a place where the art and culture of your community will be preserved. If you are considering starting this type of social enterprise, then you need to partner with your local government and perhaps institutions of higher learning in your city or community. Aside from the revenue that you will generate from visitors and tourists, you can also receive grants and funding from donor agencies, individuals, corporate organizations and from the government of your country
- Organize Carnivals and Other Related Events in Your Community
Another tax free business idea that an entrepreneur should consider starting especially if you are good with organizing events is to start organizing carnivals and other related events in your community especially if your community attracts tourists and visitors on a regular basis.
If your events are well packaged, you can successfully get financial support and sponsorship deals from your local government, corporate organizations that operate within your community and from individuals who are interested in the event you intend organizing.
- Start a Business That Organizes Excursions for School Children
It is the tradition in most schools especially primary and secondary schools to take their students on excursion once in a while. Excursion is an avenue where students travel out of their schools to get first hand experiential learning. So if you are good with organizing trips and you are looking towards making money from a tax free business in the United States of America, then one of your options is to package excursion trips for schools. If you are good at marketing, you will be able to seal business deals with lots of schools in and around your community.
- Start Organizing Student Exchange Program
Another tax free business that an entrepreneur should consider starting is organizing student exchange programs. There are loads of students who are more than willing to travel out of their countries to participate in international programs. It is an avenue for them to network and socialize with international students. It is a cool way of making money but you must work hard to ensure that the students get value for their monies.
- Start Cardboard Recycling Business
Another thriving ax free business that an aspiring entrepreneur should consider is cardboard recycling. Starting a recycling business in most climes receive support from both state and federal governments, which is why you should consider starting your own recycling business. One of the areas you can specialize in your recycling business is cardboard recycling – the market for recycled cardboard products is large.
Cardboard recycling business is all about collecting used cardboards and then recycling it so that it can be reused for the production of cardboards or any other related materials like books, paper, folders, et al. It is a fact that cardboard recycling business is indeed a profitable business, and it requires a moderate startup capital to establish it plus the fact that you stand the chance of enjoying tax rebate in most countries of the world.
- Start a Medical Waste Recycling Business
Medical waste recycling business is yet another profitable tax free business that an entrepreneur who is serious about making money can start in the United States of America. The recycling industry is a thriving industry hence medical waste recycling won’t be an exception. Even though most businesses in the recycling industry enjoy tax rebates, but you would need to check with the tax office in your state to be sure medical waste recycling business is a tax free business.
The recovering and selling of scrap gold is yet another profitable tax free business idea that an entrepreneur can successfully launch. You can actually start making money recovering scrap gold from condemned computers and electronics right from your garage or backyard. You can start right from where you are.
The good thing about this process is that it would only cost you about 20 US Dollars to recover 1 oz. worth of scrap gold and the value of this can be as high as 300 US Dollars. The good thing about this money making venture is that you can get the raw materials i.e. the scrapped and condemned computers and electronics for free.
If you visit the workshops where experts fix and repair faulty computers or electronics, you would always find some that are beyond repair and piled to be discarded. Approach them and they will be willing to give it to you for free, because they would see you as a helping hand for its disposal.
Car sharing services is yet another thriving, trending and of course profitable tax free business idea that an entrepreneur should consider starting. Car sharing business involves linking up people who stay in the same axis and work in the same axis to share cars as against driving solo to work every day. It is a good way to save energy and also reduce carbon emission in our environment. Your job is to make the connections, monitor the process and make your commissions.
- Offer Training and Mentorship to Youths in Your Community
The rate of crime is on the increase in the United States of America. One of the ways of reducing crime is to engage youths in a productive venture. As a matter of fact, the government of any country will be more than willing to partner with any nonprofit organization that is ready to work with the youth.
So if you are thinking towards starting a tax free business cum youth based social enterprise, then one of your options is to offer training and mentorship to youths in your community. The training could be in the area of soft skills, sports, how to become a successful volunteer, computer training et al.
During the Christmas season, it is the norm for people to decorate their houses and offices with Christmas trees and lights. So if you are looking towards starting a tax free business, then one of your options is to go into the sale and installation of Christmas trees and lights in homes and offices.
Although this type of business is seasonal, but that does not mean that it is not a profitable business venture to engage in. As a matter of fact, you can start this type of business with little or no startup capital. Just ensure that you make use of word of mouth and the internet to market your services.