There is another explanation that I found when doing income tax returns. One of the requirements to get a green card is that you can support yourself. I saw that some people that have great jobs went up a business for this purpose of employing family members so that those family members can claim they’re actively working. The person with the great job would have supported those family members anyway. But they wouldn’t have been able to get a green card unless they were actively supporting themselves with a job. So the business they were running had no real intention of making a profit.
Good post—kinda reminds me of the Mafia’s “ghost jobs” when they had leverage or control over a business.
The mob guys were on the payroll but they did not actually do anything.
It was skimming from the business.