# SoleProprietorshipReturns,1997

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SoleProprietorshipReturns,1997
by Therese Cruciano and Michael Parisi

onfarm sole proprietorship profits increased
5.6 percent for 1997 to $186.6 billion, with
all of the principal sole proprietorship
industrial divisions reporting increased profits. Tax
Year 1997 marked the first time since 1990 that sole
proprietorships showed 2 consecutive years of
constant dollar growth in profits. Of the industrial
divisions that accounted for most of the profits,
finance, insurance, and real estate showed the largest
increases, 8.6 percent. This division was dominated
by the finance and real estate groups, with increases
of 17.9 percent each. The next largest growth in
profits for a major industrial division was 8.0 percent
for the construction division. Sole proprietorships in
the services division (the largest industrial division)
showed an increase in profits of 3.7 percent, with a
25.7-percent increase in profits for the consulting and
management services group.
The 1997 level of sole proprietorship profits
coincides with the growth of both receipts and deductions: total business receipts increased 3.2 percent to $870.4 billion, while total business deductions grew 2.6 percent to $683.9 billion. The growth
rates of both receipts and deductions were lower than
their 1996 levels of 4.4 percent. The finance, insurance, and real estate division reported the largest
percentage increases in receipts (17.0 percent) and
deductions (21.6 percent) for 1997. Within this
division, the finance group reported a 55.3-percent
increase in receipts and a 60.6-percent increase in
deductions. When inflation is taken into account,
1997 total nonfarm sole proprietorship profits increased 3.6 percent, receipts increased 1.3 percent,
and deductions increased 0.7 percent.

N

6

ReturnsandReceipts
The number of individual income tax returns reporting nonfarm sole proprietorship activity for 1997
increased 1.3 percent, from more than 16.9 million
for 1996 to almost 17.2 million (Figure A) [1]. Of
the two largest industrial divisions, the number of
sole proprietorship returns for 1997 increased 2.1
percent for services and declined 0.6 percent for
wholesale and retail trade. Total business receipts
(the sum of “income from sales and operations” and
Therese Cruciano and Michael Parisi are economists with
the Individual Returns Analysis Section. This article was
prepared under the direction of Jeff Hartzok, Chief.
6

“other business income”) for all nonfarm sole
proprietorship industries increased 3.2 percent, from
$843.2 billion to $870.4 billion [2]. All of the sole
proprietorship industrial divisions reported growth in
business receipts for 1997, except wholesale and
retail trade, which decreased 2.5 percent. The
finance, insurance, and real estate division showed
the largest percentage growth in receipts, an increase
of 17.0 percent. Sole proprietorships in the services
division showed the greatest dollar increase in
receipts with an $11.5-billion increase. The transportation and public utilities division receipts increased
8.5 percent, the second largest percentage increase in
receipts for 1997.
As shown in Figure B, sole proprietorship receipts (in constant dollars) increased annually from
1984 through 1988 [3]. Between 1988 and 1991, the
growth in receipts stopped, resulting in year-to-year
fluctuations between gains and losses. Since 1991,
total business receipts increased every year except
1995, when receipts declined 0.2 percent. For 1997,
total receipts increased 1.3 percent (in constant
dollars).

Deductions
Total business deductions (cost of sales and operations, plus business expenses, including expenses for
a home office) increased 2.6 percent from $666.5
billion for 1996 to $683.9 billion for 1997 (Figure
A)[4,5]. As with total business receipts, all of the
sole proprietorship principal divisions except wholesale and retail trade, reported increased business
deductions for 1997. Sole proprietorships in the
finance, insurance, and real estate division showed
the largest percentage growth in deductions (21.6
percent), as well as the largest dollar increase in
deductions ($9.1 billion). The transportation and
public utilities division produced the second largest
percentage increase of 6.3 percent, while the services
division produced the second largest dollar increase
of $7.8 billion. When allowing for inflation, business deductions increased 0.7 percent for 1997
(Figure B).
Representing 46.7 percent of total 1997 business
deductions, the cost of sales and operations was
$319.6 billion (Figure C), a 1.0-percent increase
from the 1996 level. Total business “expenses” (total
business deductions minus the cost of sales and
operations) were $364.3 billion for 1997, a 4.1-

Sole Proprietorship Returns, 1997

FigureA
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Groups,
Tax Years 1996 and 1997
[Number of returns is in thousands--money amounts are in billions of dollars]

Number of returns
Industrial group

Total business receipts

Percentage

Total business deductions

Percentage

Percentage

1996

1997

increase

1996

1997

increase

1996

1997

increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

3.2
2.7
4.9
8.5
-2.5
-4.0
-2.2
-9.2

666.5
105.6
73.8
36.4
244.4
35.7
208.7
36.8

683.9
107.3
76.7
38.7
237.4
34.4
203.0
33.3

2.6
1.6
4.0
6.3
-2.9
-3.6
-2.7
-9.6

-6.6
7.9
17.0
55.3
-1.3
10.1
4.0
9.6
-1.9
4.8
19.8
6.9

51.4
25.6
42.2
13.1
11.0
18.2
185.5
54.3
40.4
13.1
12.8
52.2

48.1
26.0
51.3
21.0
11.2
19.1
193.3
61.2
40.4
13.6
14.5
55.8

-6.4
1.4
21.6
60.6
2.0
5.2
4.2
12.7
(¹)
3.7
13.8
6.8

All nonfarm industries...........................................................................................................................
16,955.0
17,176.5
1.3
843.2
870.4
Construction...........................................................................................................................
2,096.8
2,196.8
4.8
127.4
130.8
Special trade contractors...........................................................................................................................
1,798.5
1,908.8
6.1
92.1
96.6
Transportation and public utilities...........................................................................................................................
824.7
781.0
-5.3
42.1
45.7
Wholesale and retail trade...........................................................................................................................
3,151.3
3,132.6
-0.6
261.1
254.6
Wholesale trade...........................................................................................................................
351.0
348.2
-0.8
41.0
39.4
Retail trade...........................................................................................................................
2,800.3
2,784.4
-0.6
220.1
215.3
Food stores...........................................................................................................................
138.8
131.6
-5.2
38.1
34.6
Automotive dealers and
service stations...........................................................................................................................
175.5
168.5
-4.0
53.3
49.7
Eating and drinking places...........................................................................................................................
243.8
252.8
3.7
26.6
28.8
Finance, insurance, and real estate...........................................................................................................................
1,271.4
1,314.0
3.4
64.6
75.6
Finance...........................................................................................................................
128.9
182.7
41.8
14.9
23.2
Insurance...........................................................................................................................
399.5
373.5
-6.5
20.0
19.8
Real estate...........................................................................................................................
743.1
757.8
2.0
29.7
32.7
Services...........................................................................................................................
8,233.9
8,408.0
2.1
287.5
299.0
Business and personal services...........................................................................................................................
3,216.3
3,481.7
8.3
77.4
84.8
Medical and health services...........................................................................................................................
771.5
804.5
4.3
74.1
72.7
Legal services...........................................................................................................................
291.1
294.4
1.1
24.5
25.7
Consulting and management services...........................................................................................................................
832.8
898.9
7.9
25.8
30.9
All other industries ²...........................................................................................................................
1,377.0
1,344.1
-2.4
60.5
64.7
¹ Less than 0.05 percent.
² Includes agricultural services, forestry, and fishing; mining; manufacturing; and nature of business not allocable.
NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

FigureB
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1984-1997
[Money amounts are in billions of dollars]

Total business receipts
Tax
year

Total business deductions ¹

Constant dollars
Current
dollars
(1)

Amount

2,3

Percentage

Current

increase

dollars

(3)

(4)
445.3
461.3
469.0
505.4
545.7
560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9

(2)

1984..............................................................................................
516.0
679.8
6.8
1985..............................................................................................
540.0
687.9
1.2
559.4
694.0
0.9
1986..............................................................................................
610.8
735.0
5.9
1987..............................................................................................
672.0
780.5
6.2
1988..............................................................................................
692.8
772.4
-1.0
1989..............................................................................................
730.6
780.6
1.1
1990..............................................................................................
712.6
732.4
-6.2
1991..............................................................................................
737.1
737.1
0.6
1992..............................................................................................
757.2
738.0
0.1
1993..............................................................................................
790.6
752.3
1.9
1994..............................................................................................
807.4
751.0
-0.2
1995..............................................................................................
843.2
770.1
2.5
1996..............................................................................................
870.4
779.9
1.3
1997..............................................................................................

Net income less deficit

Constant dollars

2,3

Constant dollars

2,3

Percentage

Current

increase

dollars

(5)

(6)

(7)

(8)

(9)

586.7
587.6
581.9
608.2
633.8
624.5
629.5
587.1
583.1
585.6
593.6
593.6
608.6
612.8

5.9
0.2
-1.0
4.5
4.2
-1.5
0.8
-6.7
-0.7
0.4
1.4
(4 )
2.5
0.7

70.8
78.8
90.4
105.5
126.3
132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6

93.3
100.4
112.2
127.0
146.7
147.9
151.1
145.4
154.0
152.5
158.7
157.5
161.4
167.2

12.9
7.6
11.8
13.2
15.5
0.8
2.2
-3.8
5.9
-1.0
4.1
-0.8
2.5
3.6

Amount

Amount

Percentage
increase

¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses
(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or
deficit.
² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis in the Survey of Current Business , August, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
³ The overall implicit price deflator for gross domestic product was revised for 1995 and 1996.
4
Less than 0.05 percent.
NOTE: Percentage increases were calculated after rounding.

7

Sole Proprietorship Returns, 1997

FigureC

8

8

(10.6 percent), rent on business property, machinery,
and equipment (8.0 percent), and depreciation (7.9
Components of Nonfarm Sole Proprietorship
percent). For 1997, these items were $38.7 billion,
Business Deductions, Tax Years 1996 and 1997
$29.3 billion, and $28.6 billion, respectively. Car
[Money amounts are in millions of dollars]
and truck expenses showed a 5.5-percent increase
from 1996; rent on business property, machinery,
Business deductions
1996
1997
Percentage
and equipment increased 2.8 percent; and depreciaincrease
tion increased 4.6 percent. Part of the increase in car
(1)
(2)
(3)
1,2
and truck expenses was likely due to the increase in
Business deductions, total ..........................................................................................................
666,460.9
683,872.4
2.6
the standard mileage rate from 31 cents a mile for
Cost of sales and operations..........................................................................................................
316,420.9
319,557.4
1.0
1996 to 31.5 cents a mile for 1997.
Inventory, beginning of year..........................................................................................................
32,021.1
32,058.2
0.1
Cost of labor..........................................................................................................
26,001.5
24,940.8
-4.1
The depreciation deduction first began to decline
Purchases..........................................................................................................
220,028.8
224,259.0
1.9
for 1986, following the enactment of the Tax Reform
Materials and supplies..........................................................................................................
40,473.4
37,552.1
-7.2
Act of 1986 (TRA86) (Figure E). TRA86 reduced
Other costs..........................................................................................................
31,681.2
33,970.0
7.2
the allowable depreciation deduction by lengthening
Inventory, end of year..........................................................................................................
33,785.2
33,222.7
-1.7
the cost recovery periods and changing the depreciaBusiness expenses, total..........................................................................................................
350,039.9
364,315.0
4.1
Advertising expenses..........................................................................................................
8,974.9
8,977.7
(²)
tion methods for property placed in service after July
Bad debts from sales or services..........................................................................................................
986.5
1,100.7
11.6
31, 1986. In constant dollars, the depreciation deCar and truck expenses..........................................................................................................
36,700.3
38,727.7
5.5
duction dropped 2.1 percent for 1986 and continued
Commissions..........................................................................................................
10,791.7
10,985.8
1.8
to decline through 1992. Beginning with 1993, when
Depletion..........................................................................................................
566.3
565.3
-0.2
Depreciation..........................................................................................................
27,364.6
28,625.3
4.6
the limit on expensing of certain capital expenditures
Employee benefit programs..........................................................................................................
1,409.7
1,417.0
0.5
increased, the trend reversed, and depreciation inInsurance..........................................................................................................
13,195.2
13,299.5
0.8
creased until 1995, when it decreased 2.0 percent to
Legal and professional services..........................................................................................................
6,330.3
6,551.6
3.5
$24.4 billion [6]. The increases for 1996 and 1997
Meals and entertainment deducted..........................................................................................................
3,520.0
3,570.5
1.4
were a return to the upward trend. The constantMortgage interest..........................................................................................................
4,475.4
4,533.7
1.3
Other interest paid on business
dollar depreciation deduction for 1997 was $25.6
indebtedness..........................................................................................................
6,091.2
6,350.0
4.2
billion. This amount represents a 2.4-percent inOffice expenses..........................................................................................................
8,824.0
9,209.7
4.4
crease from 1996. This increase is partly due to a
Pension and profit-sharing plans..........................................................................................................
707.0
728.3
3.0
change in law, again increasing the limit on expensRent on machinery and equipment..........................................................................................................
6,926.9
7,358.2
6.2
ing certain capital expenditures, from $17,500 to
Rent on other business property..........................................................................................................
21,589.4
21,967.7
1.8
Repairs..........................................................................................................
10,715.0
10,897.4
1.7
$18,000 for Tax Year 1997 [7]. The 1997 depreciaSalaries and wages..........................................................................................................
56,322.1
57,746.2
2.5
tion deduction accounted for 4.2 percent of total
Supplies..........................................................................................................
18,777.1
19,546.5
4.1
business deductions. Depreciation deductions as a
Taxes paid..........................................................................................................
13,736.1
13,774.1
0.3
percentage of total business deductions remained
Travel..........................................................................................................
7,179.0
7,452.6
3.8
Utilities..........................................................................................................
18,161.6
18,575.1
2.3
well below the 1985 (pre-TRA86) level of 5.7 perHome office business deductions..........................................................................................................
3,769.0
3,817.5
1.3
cent.
Other business deductions..........................................................................................................
61,828.6
67,336.5
8.9
Beginning with Tax Year 1992, certain smaller
¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for
businesses
could elect to not itemize depreciation and
business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum
of the detailed deductions; the detailed deductions are, therefore, slightly understated.
other business deductions by filing Schedule C-EZ,
² Less than 0.05 percent.
Net Profit From Business, a simplified version of
NOTE: Percentage increases were calculated after rounding.
Schedule C, Profit or Loss From Business. (Schedule C and Schedule C-EZ are the source of sole
percent increase from the 1996 amount. Figure D
proprietorship statistics.) Taxpayers could use
graphically presents the main components of total
Schedule C-EZ if they: had business expenses of
business expenses. The largest component, salaries
$2,500 or less; used the cash accounting method; had
and wages, accounted for 15.9 percent of the total.
no inventories; did not report a deficit from the
For 1997, salaries and wages totaled $57.7 billion,
business; had only one business as a sole proprietor;
2.5 percent more than for 1996 (Figure C). The next
had no employees; were not required to file Form
largest components were car and truck expenses
4562, Depreciation and Amortization, for the busi-

Sole Proprietorship Returns, 1997

FigureD
Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 1997 ¹
Car and truck expenses
10.6%
Commissions
3.0%
Other business
deductions²
33.7%

Depreciation
7.9%

Insurance
3.7%
$364.3 billion
Rent on business
property, machinery, and
equipment
8.0%
Repairs
3.0%

Utilities
5.1%

Supplies
5.4%

Taxes paid
3.8%

Salaries and wages
15.9%

¹ Total business expenses equal all business deductions minus cost of sales and operations.
² Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional
services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office deductions. Other business
deductions also include all Schedule C-EZ deductions ($1.2 billion).
NOTE: Detail may not add to 100 percent because of rounding.

FigureE
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1984-1997
[Money amounts are in billions of dollars]

Constant dollars

Current dollars
Tax year

Net income

Deficit

(1)

(2)

Depreciation ³

1984..................................................................................
89.8
19.1
1985..................................................................................
98.8
20.0
1986..................................................................................
110.5
20.1
1987..................................................................................
123.8
18.3
1988..................................................................................
145.5
19.2
1989..................................................................................
152.4
19.7
1990..................................................................................
161.7
20.2
1991..................................................................................
162.4
20.9
1992..................................................................................
173.5
19.5
1993..................................................................................
177.0
20.5
1994..................................................................................
187.8
21.0
1995..................................................................................
191.7
22.5
1996..................................................................................
200.1
23.4
1997..................................................................................
210.5
23.8

Net income

Deficit

1,2

Percentage increase in constant dollars

Depreciation ³

1,2

Net income

Deficit

Depreciation ³

(3)

(4)

(5)

(6)

(7)

(8)

(9)

23.9
26.3
26.4
25.6
26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6

118.4
125.9
137.1
149.0
169.0
169.9
172.7
166.9
173.5
172.5
178.7
178.4
182.8
188.6

25.1
25.5
24.9
22.0
22.3
21.9
21.6
21.5
19.5
20.0
20.0
20.9
21.3
21.3

31.5
33.5
32.8
30.8
30.3
27.3
25.4
23.7
23.3
24.3
24.9
24.4
25.0
25.6

10.1
6.3
8.9
8.7
13.4
0.5
1.6
-3.4
4.0
-0.6
3.6
-0.2
2.5
3.2

0.7
1.6
-2.4
-11.6
1.4
-1.8
-1.4
-0.5
-9.3
2.6
-4.5
1.9
--

4.3
6.3
-2.1
-6.1
-1.6
-9.9
-7.0
-6.7
-1.7
4.3
2.5
-2.0
2.5
2.4

¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of
Economic Analysis in the Survey of Current Business , August, 1998. The deflator represents the annual average of current-weighted prices, based on 1992=100.
² The overall implicit price deflator for gross domestic product was revised for 1995 and 1996.
³ For 1991-1995, excludes depreciation reported on Form 8829 for home office business.
NOTE: Percentage increases were calculated after rounding.

9

Sole Proprietorship Returns, 1997

FigureF
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Divisions, Tax Year 1997
[Money amounts are in millions of dollars]

Number of returns
Industrial division
Total

(1)

Total business receipts

With

Percentage

Schedule

of

C-EZ

total

(2)

(3)

Total

(4)

Total business deductions

On

Percentage

Schedule

of

C-EZ

total

(5)

(6)

On
Total

Percentage

Schedule

of

C-EZ

total

(7)

(8)

(9)

All nonfarm industries..................................................................................................
17,176,487
2,414,035
14.1
870,392.3

11,263.6

1.3

683,872.4

1,212.2

0.2

Construction..................................................................................................
2,196,762
314,454
14.3

130,764.7

1,842.3

1.4

107,314.8

148.1

0.1

Transportation and
public utilities..................................................................................................
780,994
53,255
6.8

45,690.0

258.4

0.6

38,732.2

36.1

0.1

Wholesale and retail trade..................................................................................................
3,132,594
223,289
7.1
254,642.3
Finance, insurance, and

929.6

0.4

237,439.7

117.5

(¹)

75,595.1
298,983.8

510.7
6,861.8

0.7
2.3

51,317.9
193,283.4

72.9
775.3

0.1
0.4

All other industries..................................................................................................
1,344,116
200,114
14.9
64,716.5

860.6

1.3

55,784.3

62.4

0.1

real estate..................................................................................................
1,314,029
89,548
6.8
Services..................................................................................................
8,407,991
1,533,374
18.2
¹ Less than 0.05 percent.
NOTE: Detail may not add to totals because of rounding.

10

ness; claimed no deduction for home business expenses; and had no prior-year disallowed passive
activity losses from the business. Since taxpayers
using Schedule C-EZ did not itemize business deductions, the detailed deductions in Table 2 are slightly
understated and will not add to the totals.
Figure F presents the numbers and percentages
of nonfarm sole proprietorship returns filed on
Schedule C-EZ by industrial division. More than 2.4
million taxpayers filed Schedule C-EZ for Tax Year
1997, an increase of 12.2 percent from 1996. Of the
Schedule C-EZ returns filed for 1997, taxpayers in
the services industries filed 1.5 million returns, or
63.5 percent. For 1997, business receipts from
Schedule C-EZ filers totaled almost $11.3 billion, or
1.3 percent of total business receipts reported. However, the business deductions reported on Schedule
C-EZ returns accounted for only 0.2 percent of total
business deductions for all industries. Even in the
services division with its concentration of Schedule
C-EZ filers, deductions reported on Schedule C-EZ
accounted for only 0.4 percent of total business
deductions.

ProfitsandLosses
All of the principal industrial divisions reported
increased sole proprietorship profits for 1997. Figure
B presents total profits for all industries (in both
current and constant dollars), while Figure G presents profits by industrial group [8]. Total profits
10

FigureG
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Groups, Tax Years 1996 and 1997
[Money amounts are in billions of dollars]

Net income less deficit
Industrial group

1996

1997

Percentage
increase

(1)

(2)

(3)

All nonfarm industries.........................................................................................................
176.8
186.6
5.6
Construction.........................................................................................................
21.7
23.5
8.0
Special trade contractors.........................................................................................................
18.3
19.9
8.7
Transportation and public utilities.........................................................................................................
5.7
6.9
22.2
Wholesale and retail trade.........................................................................................................
16.7
17.2
3.1
Wholesale trade.........................................................................................................
5.3
4.9
-6.4
Retail trade.........................................................................................................
11.4
12.3
7.5
Food stores.........................................................................................................
1.3
1.3
0.2
Automotive dealers and
service stations.........................................................................................................
1.9
1.6
-13.4
Eating and drinking places.........................................................................................................
1.0
1.5
46.6
Finance, insurance, and real estate.........................................................................................................
22.4
24.3
8.6
Finance.........................................................................................................
1.8
2.1
17.9
Insurance.........................................................................................................
9.0
8.6
-5.2
Real estate.........................................................................................................
11.5
13.6
17.9
Services.........................................................................................................
102.0
105.8
3.7
Business and personal services.........................................................................................................
23.1
23.6
2.2
Medical and health services.........................................................................................................
33.7
32.3
-4.1
Legal services.........................................................................................................
11.4
12.1
6.0
Consulting and management services.........................................................................................................
13.1
16.4
25.7
All other industries ¹.........................................................................................................
8.3
9.0
7.9
¹ Includes agricultural services, forestry, and fishing; mining; manufacturing; and nature of
business not allocable.
NOTE: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.

Sole Proprietorship Returns, 1997

increased 5.6 percent, from $176.8 billion for 1996
to $186.6 billion for 1997. Transportation and public
utilities, a relatively small division, reported the
largest percentage change in profits for 1997, a 22.2percent increase. Of the larger divisions, finance,
insurance, and real estate reported an 8.6-percent
increase in profits. The finance and real estate
groups led this division’s growth in profits, both
showing 17.9-percent increases. The services division, the largest of the industrial divisions, produced
a 3.7-percent increase.
TRA86 may have influenced 1996 sole proprietorship profits through its placement of restrictions
on “passive losses.” Beginning in 1987, these restrictions were an effort to curb investment in “tax
shelters” [9]. However, the restrictions had a limited
effect on overall sole proprietorship profits, amounting to $200.0 million in nondeductible losses reported for 1997.
In constant dollars, total profits increased 3.6
percent for 1997 (Figure B), surpassing the 2.5percent increase from the previous year. For the first
time since 1990, sole proprietorships had 2 consecutive years of constant dollar growth in profits. Prior
to 1997, profits increased every other year starting
with 1990. Figure E presents net income and deficit
for sole proprietorships between 1984 and 1997, in
current and constant dollars. For 1997, net income
(in constant dollars) increased 3.2 percent, and deficits (in constant dollars) remained virtually unchanged.

IndustryTrends
Using receipts as a measure of business size, Figures
A and H show that services continued to be the
largest sole proprietorship industrial division for
1997 with 34.4 percent of all business receipts. Total
receipts for this division, at $299.0 billion, were 4.0
percent more than the $287.5 billion reported for
1996. Figures G and I show that services division
profits grew 3.7 percent to $105.8 billion, accounting
for 56.7 percent of sole proprietorship profits for
1997. Medical services had the largest profits in the
division, reporting almost one third of total services
profits. However, small declines in both receipts and
deductions for this group led to a 4.1-percent decline
in profits for 1997. All of the other major groups
showed some growth. The largest increases in

receipts and deductions (19.8 percent and 13.8
percent, respectively) were for the consulting and
management services group, producing a 25.7percent increase in profits. The business and
personal services group reported an increase in both
receipts and deductions. The net effect of these
changes was increased profits (2.2 percent) to a level
of $23.6 billion. Profits from business and personal
services sole proprietorships comprised 22.3 percent
of total profits for the services division. Sole proprietorships in the legal services group reported
increased receipts and deductions, resulting in a 6.0percent growth in profits.
The second largest sole proprietorship industrial
division with 29.3 percent of total receipts was
wholesale and retail trade. A 2.5-percent decrease in
receipts for this division, accompanied by a slightly
larger 2.9-percent decrease in deductions, led to
moderate growth in profits (a 3.1-percent increase).
Within this division, the wholesale trade group
showed a 4.0-percent decrease in receipts and a 3.6percent decrease in deductions, leading to a 6.4percent decrease in profits. The other component of
this division, the retail trade group, reported declines
in both receipts and deductions (2.2 percent and 2.7
percent, respectively), and showed a 7.5-percent
increase in profits. Sole proprietorships in the retail
trade group accounted for 84.5 percent of the receipts
and 71.4 percent of the profits for the division.
Within the retail trade group, eating and drinking
places reported a 46.6-percent growth in profits.
This substantial growth contrasts with the 0.2-percent
increase and 13.4-percent decease in profits shown
for food stores and automotive dealers and services
stations groups, respectively.
The third largest industrial division was construction, with receipts totaling $130.8 billion. This
amount was 15.0 percent of all sole proprietorship
receipts for 1997, representing a 2.7-percent increase
from the 1996 amount. Deductions likewise increased by 1.6 percent. Construction profits increased 8.0 percent for 1997, totaling $23.5 billion.
Special trade contractors reported the largest portion
(84.7 percent) of these profits. As a group, they
showed increases of 4.9 percent for receipts and 8.7
percent for profits.
The fourth largest division was finance, insurance, and real estate, which accounted for 8.7 percent
11

Sole Proprietorship Returns, 1997

FigureH
Nonfarm Sole Proprietorship Total Business Receipts, Tax Year 1997
All other industries
7%

Construction
15%

Transportation and
public utilities
5%

Services
35%

$870.4 billion

Wholesale and retail
trade
29%
Finance, insurance, and
real estate
9%

12

FigureI
Nonfarm Sole Proprietorship Total Business Profits, Tax Year 1997
All other industries
5%

Construction
13%
Transportation and public
utilities
4%
Wholesale and retail
trade
9%

$186.6 billion

Services
56%

12

Finance, insurance, and
real estate
13%

Sole Proprietorship Returns, 1997

of sole proprietorship receipts for 1997. Receipts
increased 17.0 percent to $75.6 billion, and deductions increased 21.6 percent to $51.3 billion, yielding
an 8.6-percent growth in profits. This growth in
profits was the second largest percentage gain in
profits of all the principal industrial divisions. The
finance group showed substantial increases in returns
(up 41.8 percent) and both receipts (55.3 percent)
and deductions (60.6 percent). These increases
were probably due, in part, to the large growth of
activity in the stock market for 1997. The large 17.9percent increases in profits for both the finance and
real estate groups more than compensated for the
5.2-percent decline in profits for the insurance group.

Summary
Profits for nonfarm sole proprietorships for 1997 grew
5.6 percent to $186.6 billion. Receipts and deductions increased 3.2 percent and 2.6 percent, respectively. All of the principal industrial divisions showed
increased profits for 1997. Of the divisions that accounted for most of the profits, finance, insurance, and
real estate reported the largest percentage growth, 8.6
percent. The services division remained the largest
sole proprietorship industrial division, accounting for
34.4 percent of receipts and 56.7 percent of profits.
Services division receipts grew 4.0 per-cent to
$299.0 billion, while profits grew 3.7 percent to
$105.80 billion. In constant dollars, total nonfarm
sole proprietorship profits increased 3.6 percent. For
the first time since Tax Year 1990, there were 2
consecutive years of constant dollar growth.

DataSourcesandLimitations
The 1997 sole proprietorship estimates are based on
a stratified probability sample of unaudited individual income tax returns, Forms 1040 and 1040PC
(including electronically-filed returns), processed by
the Internal Revenue Service during 1998. Returns
in the sample were stratified based on: (1) the
presence or absence of Schedule C, Profit or Loss
From Business (Sole Proprietorship), or Schedule CEZ, Net Profit From Business, and Schedule F, Farm
Income and Expenses; (2) the larger of positive
income or negative income (i.e., “adjusted gross
income” before statutory adjustments); and (3) tax
year. The returns were selected at rates that ranged
from 0.02 percent to 100 percent. The 1997 nonfarm
sole proprietorship data are based on a sample of
38,883 returns and a population of 17,181,683
returns [10]. The corresponding sample and population for the 1996 data were 40,075 and 17,171,195
returns, respectively.
Since the data presented in this article are estimates based on a sample of returns filed, they are
subject to sampling error. To properly use the statistical data provided, the magnitude of the potential
sampling error must be known; coefficients of variation (CV’s) are used to measure that magnitude.
Figure J presents estimated coefficients of variation
for the number of returns and money amounts for
selected items and industrial divisions. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of
coefficients of variation for evaluating the precision

FigureJ
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Divisions, Tax Year 1997
[Coefficients of variation are in percentages]

Coefficients of variation
Industrial division

Total business
receipts ¹
(1)

0.78
All nonfarm industries.................................................................................................
Construction.................................................................................................
2.89

Total business
deductions

Depreciation

Net income

Deficit

(2)

(3)

(4)

(5)

0.69

1.14

2.28

1.53

2.72

3.60

8.45

4.40

Transportation and public utilities.................................................................................................
4.18
3.71

5.57

0.21

5.86

Wholesale and retail trade.................................................................................................
1.96

2.03

3.55

4.61

3.63

Finance, insurance, and real estate.................................................................................................
2.89
2.86

4.22

7.41

5.13

Services… … … … … .................................................................................................
1.37

1.70

3.98

2.48

¹ Positive only.

1.30

13

Sole Proprietorship Returns, 1997

of estimates based on samples.

Notes and References
[1] For 1997, the 17,176,487 nonfarm sole proprietorship returns accounted for 19,218,650 nonfarm
businesses. Actually, more businesses may have
existed than those counted; processing for tax
administration purposes allows only three businesses (reported on separate Schedules C) per
return, and combines any remaining businesses
on one (or more) of the three Schedules C.
Statistics of Income--1981, Sole Proprietorship Returns contains a more detailed explanation of the relationship between proprietors and
proprietorships.

14

For purposes of the statistics, if a proprietor
owned more than one business, the statistics for
each business were combined with those of the
proprietor’s dominant business and included in
the industrial group for that business activity.
When this occurred, the sum of net incomes (for
businesses reporting a positive net income)
reduced by the sum of net deficits (for businesses
reporting a deficit) yielded the profits for a
specific industrial group.
The Standard Industrial Classification Manual,
1987, issued by the U.S. Office of Management
and Budget, was used to classify data by industry. These classifications were applied on a “per
business” (rather than on a “per establishment”)
basis for Statistics of Income by combining
various industry groups, although businesses
were further combined as described above.
While the wording of the industry titles used for
the sole proprietorship statistics diverges somewhat from those appearing in the Standard
Industrial Classification Manual, the definitions
are consistent.
[2] Statistics for “business receipts, total” in Table 2
represent the total receipts of the business,
mainly gross receipts from sales and operations.
Business receipts also include miscellaneous
business receipts, such as incidental sales of
scrap, shown separately in the statistics as “other
business income.” However, business receipts
exclude incidental investment income received

14

through the business. Examples of such incidental investment income are interest, dividends,
income or loss from rents or royalties, and
capital or ordinary gain or loss from the sale of
investment and business property. Sole proprietors report incidental investment income, in
combination with nonbusiness related investment
income, as part of their total income on their
individual income tax returns.
[3] Based on the overall implicit price deflator for
Gross Domestic Product (GDP). See U.S.
Department of Commerce, Bureau of Economic
Analysis, Survey of Current Business, August
1998. Indices used for this article were:
Year

Indices

Year

Indices

1984
1985
1986
1987
1988
1989
1990

75.9
78.5
80.6
83.1
86.1
89.7
93.6

1991
1992
1993
1994
1995
1996
1997

97.3
100.0
102.6
105.1
107.5
109.5
111.6

[4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from
business income or loss, which is reported on the
attached Schedule C, Profit or Loss From
Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to
owners qualify as personal income, not as a
business expense, and are, therefore, part of the
owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made
through the business as personal expenses on
Schedule A, Itemized Deductions. However, the
owner of a sole proprietorship may choose to
deduct any foreign taxes paid as a business
expense, unless the owner elects to claim these
taxes as a credit against U.S. income tax.
[5] Business deductions include the home office
business deduction. After 1990, home office
expenses were calculated separately on Form
8829, Expenses for Business Use of Your Home,
and the deductible portion brought forward to
Schedule C. In some cases, these expenses were
limited. Prior to 1990, these expenses were not

Sole Proprietorship Returns, 1997

limited and were included with other expenses,
such as the depreciation deduction, utilities, and
“other” expenses, on Schedule C.

their tax on total “taxable income,” which
includes their business profits, plus any other
income.

[6] The increase in the depreciation deduction for
1993 may be attributed, in part, to a provision of
the Omnibus Budget Reconciliation Act of 1993
(OBRA93). The cost of certain tangible property
(as described in Internal Revenue Code section
179) may be treated as a current expense rather
than a capital expenditure subject to depreciation
deductions. The provision of OBRA93 (related
to these expenses) increased the maximum
amount of investment certain small businesses
could immediately deduct on property placed in
service after 1992, from $10,000 to $17,500. As
a result of this provision, the deduction increased
32.4 percent to $13.5 billion for 1993.

[9] Losses generated by any “flow-through”
business activity (i.e., such as partnerships or S
Corporations for which profits and certain other
amounts pass through to the owners for taxation), in which the taxpayer did not “materially
participate” (i.e., was not involved regularly
and substantially in the operations of the
activity) qualified as passive activity losses.
The Tax Reform Act of 1986 (TRA86) gradually eliminated the use of passive losses as a
means to offset nonpassive income, such as
salaries and wages. TRA86 provided for a 5year phase-in (ending in 1991) of the limitations on passive losses for investments made
prior to 1987; since Tax Year 1991, the restrictions applied to all passive losses. However,
exceptions up to $25,000 were made for certain
real estate losses. Under prior law, passive
losses were fully deductible.

[7] Section 1111 of the Small Business Job Protection Act of 1996 (H.R. 3448, 104th Congress;
Public Law 188) increased the maximum section
179 expense deduction from $17,500 to $18,000
beginning with 1997. The Act set up the maximum 179 expense deduction to be phased in over
7 years to $25,000 for 2003 and thereafter. The
total amount of this deduction for 1997 for all
individual taxpayers (including sole proprietorships) was $19.2 billion, a 6.6-percent increase
from 1996.
[8] Net income minus deficit (loss) before Federal
income tax yields profits. Proprietors compute

[10] The difference between the number of returns
in the population and the total number of
returns in Tables 1 and 2 is mainly due to
returns in which Schedule C income was
moved to other income or wages to avoid
double counting of taxpayers for Gross Domestic Profit calculations. In addition, data from
amended returns and tentative returns are not
reflected in these statistics.

15

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group

Number
of returns

Business
receipts

(1)

(2)

Depreciation
1
deduction

Rent paid

Rent paid

on machinery
and
1
equipment

on other
business
1
property

Net income
less deficit

(3)

(4)

(5)

(6)

(7)

(8)

7,358,163

21,967,711

10,883,658

82,686,988

186,643,910

232,631
204,861
38,766
437

325,447
281,753
83,312
5,829

414,700
325,936
79,198
18,761

3,582,902
3,343,199
666,015
28,247

3,675,044
2,905,014
907,529
-166,687

12,027
127,906
25,724
26,771
1,000
--

92,145
91,344
9,122
12,783
22,162
*8,749

68,947
127,461
31,570
18,366
67,579
*2,819

263,108
1,660,336
725,493
80,244
159,175
*283

105,077
1,858,339
200,756
226,068
550,945
*-6,982

Mining...............................................................................................
124,365
5,731,388
343,281
39,186
Metal mining...............................................................................................
2,412
21,472
4,295
1,313
Coal mining...............................................................................................
*17
*161,117
*4,193
*709
Oil and gas extraction...............................................................................................
112,086
5,117,745
292,972
19,637
Quarrying and nonmetallic minerals, except fuels...............................................................................................
9,849
431,055
41,822
17,526

45,442
50
*36
29,737
15,619

138,572
377
*1,076
123,583
13,535

299,343
7,011
*3,449
198,111
90,772

176,539
-23,275
*7,706
199,440
-7,331

Construction...............................................................................................
2,196,762
130,764,670
4,291,107
1,075,890
General building contractors and operative builders...............................................................................................
260,684
31,334,595
559,568
116,943
General building contractors...............................................................................................
232,342
27,715,014
501,215
102,700
Operative builders...............................................................................................
28,342
3,619,581
58,352
14,243
Heavy construction contractors...............................................................................................
27,249
2,823,889
265,230
105,545
Highway and street construction...............................................................................................
6,585
520,151
52,865
13,100
Heavy construction, except highway...............................................................................................
20,664
2,303,738
212,366
92,445
Special trade contractors...............................................................................................
1,908,829
96,606,187
3,466,309
853,402
Plumbing, heating, and air conditioning...............................................................................................
144,361
10,478,289
371,958
43,391
Painting and paperhanging...............................................................................................
225,902
7,216,776
221,210
62,876
Electrical work...............................................................................................
113,210
7,860,172
179,163
40,890
Masonry, stonework, tile setting, and plastering...............................................................................................
196,568
10,800,400
256,061
89,104
Carpentering and flooring...............................................................................................
558,319
22,339,426
625,844
107,209
Roofing, siding, and sheet metal work...............................................................................................
115,409
8,051,696
236,968
63,877
Concrete work...............................................................................................
51,205
3,742,628
124,070
43,037
Miscellaneous special trade contractors...............................................................................................
503,856
26,116,800
1,451,035
403,019
Manufacturing...............................................................................................
480,365
33,254,751
1,661,932
399,951
Food and kindred products...............................................................................................
12,616
2,081,799
45,512
1,660
Textile mill products...............................................................................................
*1,467
*314,227
*9,834
*440
Apparel and other textile products...............................................................................................
34,734
2,238,470
78,860
29,794
Lumber and wood products, except furniture
(including logging)...............................................................................................
95,919
8,537,689
656,148
128,086
Furniture and fixtures...............................................................................................
26,432
1,569,276
46,492
31,550
Printing, publishing, and allied industries...............................................................................................
98,317
4,944,073
153,985
68,681
Leather and leather products...............................................................................................
*2,052
*115,432
*3,894
*39
Stone, clay, and glass products...............................................................................................
19,155
635,322
34,227
2,337
Primary metal industries...............................................................................................
*3,151
*64,973
*299
-Fabricated metal products...............................................................................................
43,023
2,007,816
118,091
29,770
Machinery, except electrical ...............................................................................................
41,705
4,914,759
349,098
51,634
Electrical and electronic equipment ...............................................................................................
17,227
924,861
14,199
1,543
Paper and allied products...............................................................................................
5,753
697,586
15,988
5,684
Other manufacturing industries...............................................................................................
78,813
4,208,468
135,305
48,734
Transportation and public utilities...............................................................................................
780,994
45,690,042
3,991,756
1,257,406
Local and interurban passenger transit...............................................................................................
99,974
2,918,648
150,741
292,449
Taxicabs...............................................................................................
60,990
1,411,810
33,463
244,104
Bus and limousine transportation...............................................................................................
37,912
1,446,806
88,978
48,232
Other highway passenger transportation...............................................................................................
*1,072
*60,032
*28,301
*113
Trucking and warehousing ...............................................................................................
492,521
33,318,681
3,526,772
818,938
Trucking, local and long distance, including
trash collection without own dump...............................................................................................
365,555
31,009,545
3,468,659
781,080
Courier or package delivery service...............................................................................................
123,662
2,270,267
57,373
36,116
Public warehousing...............................................................................................
*3,304
*38,870
*740
*1,743
Water transportation...............................................................................................
9,788
422,148
26,967
3,847
Air transportation...............................................................................................
10,520
286,279
30,753
2,861
Transportation services...............................................................................................
91,399
6,027,035
117,411
72,769
Travel agents and tour operators...............................................................................................
49,633
3,720,361
36,515
25,234
Other transportation services...............................................................................................
41,766
2,306,673
80,897
47,535
Communication services...............................................................................................
58,906
2,431,712
117,612
63,543
Utilities, including dumps, snowplowing,
road cleaning, etc................................................................................................
17,885
285,540
21,500
3,000
Footnotes at end of table.

724,807
109,489
90,300
19,189
3,415
1,549
1,866
611,903
51,040
27,767
48,392
46,456
128,242
84,175
23,441
202,389
769,852
41,573
*51
125,970

1,262,944
381,598
344,074
37,524
67,656
9,905
57,751
813,690
88,759
32,789
38,275
41,957
147,801
36,312
40,390
387,407
514,587
11,342
*7,196
15,843

20,203,271
4,451,993
3,854,012
597,981
380,055
59,628
320,428
15,371,222
1,462,185
1,101,148
1,467,645
2,313,805
2,710,339
1,644,254
720,286
3,951,561
4,376,403
131,672
*11,629
472,942

23,450,389
3,335,662
2,971,144
364,517
245,477
21,118
224,359
19,869,251
1,726,884
2,232,731
1,448,097
2,354,012
6,154,617
1,321,919
355,357
4,275,634
4,377,188
102,411
*56,045
266,874

73,519
47,966
144,326
*3,772
28,303
*217
58,266
95,604
19,243
4,133
126,908
379,839
64,043
27,266
36,761
*16
217,450

197,930
14,920
74,888
*454
7,904
*1,063
26,062
97,337
4,940
-54,708
950,061
63,540
33,577
26,566
*3,396
773,598

988,815
243,554
646,066
*51,174
90,402
*3,973
356,916
829,233
82,471
*18,235
449,323
3,897,366
169,647
44,156
125,189
*302
2,825,840

538,264
476,159
614,525
*10,802
68,807
*19,828
211,593
907,693
254,935
*-25,108
874,360
6,941,712
671,758
380,344
293,003
*-1,588
4,944,089

210,659
6,791
-6,388
12,077
45,085
31,560
13,526
28,119

760,064
12,273
*1,261
11,355
16,735
54,042
13,478
40,564
27,690

2,729,829
94,826
*1,185
24,108
43,853
407,501
135,964
271,537
392,257

4,225,407
700,485
*18,197
61,155
59,687
563,793
212,866
350,927
571,366

6,676

3,102

34,161

69,863

Agricultural services, forestry, and fishing...............................................................................................
564,734
23,645,626
1,703,435
Agricultural services...............................................................................................
486,968
20,378,460
1,357,429
Veterinary services, including pets...............................................................................................
27,622
3,645,722
140,575
Livestock breeding...............................................................................................
21,126
409,507
48,384
Animal services, except livestock breeding,
and veterinary...............................................................................................
109,082
3,269,015
225,609
Landscape and horticultural services...............................................................................................
270,548
10,387,964
821,086
Farm labor, management, and crop services...............................................................................................
58,590
2,666,253
121,775
Forestry, except logging...............................................................................................
16,634
1,073,756
85,242
Commercial fishing...............................................................................................
57,248
2,167,277
256,773
Hunting and trapping...............................................................................................
*3,885
*26,133
*3,992

16

Payroll 1,3

29,061,859

All nonfarm industries...............................................................................................
17,176,487
870,392,286

16

Interest paid
deduction 1,2

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group

Rent paid

Rent paid

on machinery
and

on other
business

equipment ¹

property ¹

Number
of returns

Business
receipts

Depreciation
deduction ¹

Interest paid
deduction 1,2

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Wholesale and retail trade...............................................................................................
3,132,594
254,642,287

4,474,373

1,092,289

7,873,463

2,643,933

17,454,541

17,215,295

Wholesale trade...............................................................................................
348,193
39,353,838

561,789

92,276

416,882

267,172

1,371,670

4,929,770

wood, metals, etc................................................................................................
205,779
21,192,944
Nondurable goods, including food, fiber,

341,283

47,787

220,360

149,518

806,947

3,377,040

chemicals, etc................................................................................................
142,413
18,160,894
Retail trade...............................................................................................
2,784,402
215,288,449

220,507
3,912,584

44,489
1,000,013

196,522
7,456,581

117,654
2,376,760

564,723
16,082,872

1,552,731
12,285,524

Payroll 1,3

Net income
less deficit

Durable goods, including machinery,

Building materials, paint, hardware,
garden supply, and mobile home dealers...............................................................................................
71,919
9,137,257
227,556
Lumber and other building materials dealers...............................................................................................
24,780
2,983,733
83,648

47,095
20,705

122,236
41,639

187,158
44,997

838,655
324,123

812,032
346,820

Paint, glass, and wallpaper stores...............................................................................................
11,199
611,521
6,600
Hardware stores...............................................................................................
13,188
2,803,938
41,228

2,657
17,092

16,118
45,858

14,694
53,913

106,523
172,683

40,428
221,441

Retail nurseries and garden supply stores...............................................................................................
16,913
1,860,652
81,697

6,345

14,094

52,736

158,883

152,010

14,382
50,966

297
7,704

4,527
183,036

20,818
32,956

76,442
212,121

51,333
396,752

Variety stores...............................................................................................
11,595
1,477,020
10,871
Computer and software stores...............................................................................................
11,606
1,209,509
15,537

3,840
723

93,489
28,220

8,050
2,879

74,693
46,835

165,940
80,866

Mobile home dealers...............................................................................................
5,839
877,413
General merchandise stores...............................................................................................
40,407
4,634,001

Other general merchandise stores...............................................................................................
17,205
1,947,472
24,557

3,141

61,327

22,027

90,593

149,946

463,060
283,838

114,679
68,693

858,039
548,186

258,844
188,466

2,252,622
1,456,050

1,299,802
918,328

57,490
121,732

21,280
24,705

110,272
199,582

37,237
33,140

368,039
428,534

57,364
324,109

Automotive dealers and service stations...............................................................................................
168,505
49,737,433
414,620

84,544

656,231

474,058

2,284,843

1,641,972

Food stores...............................................................................................
131,615
34,559,055
Grocery stores...............................................................................................
75,860
26,877,171
Retail bakeries...............................................................................................
17,178
1,783,130
Miscellaneous food stores...............................................................................................
38,576
5,898,753
Motor vehicle dealers--new car
dealers (franchised)...............................................................................................
8,559
1,387,901

7,490

4,208

3,234

20,264

59,825

18,927

Motor vehicle dealers--used cars only...............................................................................................
76,543
16,076,271
75,282
Auto parts and accessories and

9,764

177,601

182,928

619,279

659,786

selected home supply stores...............................................................................................
30,446
3,595,801
48,342

29,673

64,776

40,076

236,367

299,667

217,368
11,024

31,603
120

367,497
16,982

144,671
20,631

1,143,894
35,104

493,431
2,462

Miscellaneous automotive dealers...............................................................................................
22,570
4,920,341
55,115
Apparel and accessory stores...............................................................................................
111,500
8,614,870
139,282

9,176
67,438

26,141
690,900

65,488
97,273

190,374
615,398

167,699
548,015

Gasoline service stations...............................................................................................
25,663
22,656,763
Boat dealers...............................................................................................
4,723
1,100,356

Men's and boys' clothing stores...............................................................................................
5,579
666,498
4,365

13,962

53,218

8,283

44,509

29,961

Women's ready-to-wear stores...............................................................................................
24,659
1,488,220
41,357
Women's accessory and specialty stores...............................................................................................
17,099
1,078,226
9,787

14,443
1,546

137,167
56,372

13,151
16,302

101,154
80,289

-37,239
101,275

Family clothing stores...............................................................................................
18,051
1,391,883
Shoe stores...............................................................................................
6,440
1,175,590

20,778
11,131

1,073
9,237

120,654
78,280

25,224
10,003

128,288
47,977

43,051
77,472

elsewhere classified...............................................................................................
39,671
2,814,452
51,864
Furniture and home furnishings stores...............................................................................................
107,352
9,377,117
267,735

27,176
51,353

245,208
432,501

24,310
139,119

213,182
1,036,585

333,495
728,417

Apparel and accessory stores, not

Furniture stores...............................................................................................
30,448
3,687,538

129,152

12,529

208,128

59,450

421,762

177,656

Home furnishings and equipment
stores, except appliances...............................................................................................
31,108
2,556,464

37,464

11,402

95,971

48,954

288,962

247,589

24,609
2,807

70,315
45,820

16,450
9,941

160,077
134,856

175,778
89,433

Household appliance stores...............................................................................................
19,179
1,457,423
42,415
Television, audio, and electronic stores...............................................................................................
8,251
1,162,689
27,969
Music and record stores...............................................................................................
18,367
513,002

30,734

6

12,268

4,324

30,928

37,961

Eating and drinking places...............................................................................................
252,827
28,764,269
Eating places...............................................................................................
136,631
22,425,239

799,343
639,000

219,015
175,582

1,720,231
1,446,960

476,195
360,499

5,164,658
4,417,089

1,537,207
1,050,070

Drinking places...............................................................................................
54,747
4,834,113
Catering services...............................................................................................
61,450
1,504,918

130,876
29,467

27,067
16,366

215,418
57,854

107,638
8,059

669,464
78,106

242,237
244,900

Miscellaneous retail stores...............................................................................................
1,900,277
70,464,447

1,550,023

408,185

2,793,407

711,158

3,677,989

5,321,329

23,325
42,597

5,710
28,059

49,791
177,814

9,776
31,238

299,743
180,231

266,005
174,013

Used merchandise and antique stores...............................................................................................
117,829
3,631,249
78,660
Sporting goods and bicycle shops...............................................................................................
49,200
3,741,163
65,268

46,857
6,111

417,839
114,647

35,961
43,939

144,375
167,076

114,753
45,195

Book stores...............................................................................................
17,786
1,124,536

16,526

1,767

86,500

12,211

124,837

34,830

Stationery stores...............................................................................................
8,714
1,039,465
Jewelry stores...............................................................................................
27,615
3,194,405

12,252
37,698

9,735
8,953

62,363
194,787

14,684
33,263

77,222
174,213

94,371
335,372

1,401
*3,515

114,556
*26,409

12,935
*4,295

48,379
*20,525

-2,345
*51,004

Drug stores...............................................................................................
4,240
3,895,898
Liquor stores...............................................................................................
11,095
4,452,581

Hobby, toy, and game shops...............................................................................................
36,689
988,373
22,523
Camera and photographic supply stores...............................................................................................
*5,076
*363,697
*5,808
Luggage and leather goods stores...............................................................................................
*2,407
*187,982
*1,018

*199

*10,291

*2,383

*6,256

*17,302

Fabric and needlework stores...............................................................................................
12,755
560,349
16,284
Catalog or mail order...............................................................................................
114,182
1,732,993
22,390

4,954
12,057

49,115
18,490

4,962
10,356

67,684
41,564

-11,693
-22,629

Vending machine selling...............................................................................................
66,877
2,045,849
244,210
Sales by door-to-door, telephone, etc................................................................................................
1,102,799
18,866,536
481,616

9,422
124,096

9,025
332,867

31,828
190,590

41,044
398,433

101,935
2,750,972

Gift, novelty, and souvenir shops...............................................................................................
62,925
3,159,680
54,279

24,540

265,463

30,728

209,456

107,026

Fuel oil dealers...............................................................................................
4,264
1,998,131
Florists...............................................................................................
46,022
3,483,564

29,464
109,614

2,585
19,441

5,624
162,449

15,324
45,180

89,754
527,195

63,525
156,202

Other retail shops...............................................................................................
209,802
15,997,995
Footnotes at end of table.

286,489

98,783

695,378

181,502

1,060,003

1,045,491

17

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group

Number
of returns

Business
receipts

Depreciation
deduction ¹

(1)

(2)

(3)

Rent paid

Rent paid

on machinery
and

on other
business

equipment ¹

property ¹

Finance, insurance, and real estate...............................................................................................
1,314,029
75,595,055
1,582,804
Finance...............................................................................................
182,730

23,163,149

Interest paid
deduction 1,2

Payroll 1,3

Net income
less deficit

(4)

(5)

(6)

(7)

(8)

541,017

1,159,813

1,323,742

3,175,416

24,264,460
2,148,732

214,523

64,453

237,034

554,953

587,865

Credit agencies and mortgage bankers...............................................................................................
24,553
1,097,148
10,386

7,814

23,328

43,003

31,514

27,804

Security and commodity brokers and services...............................................................................................
75,834
14,471,710
79,657
Security brokers and dealers...............................................................................................
23,311
8,975,782
19,125

24,427
2,045

113,977
33,391

308,421
222,022

192,768
58,214

895,387
-11,592

20,973

72,050

74,312

115,225

858,325

Investment advisors and services...............................................................................................
40,454
3,294,230
51,244
Commodity contract brokers, exchanges
and services...............................................................................................
12,069
2,201,698
Other financial services...............................................................................................
82,343
7,594,290

9,287
124,480

1,410
32,212

8,537
99,729

12,087
203,529

19,329
363,583

48,653
1,225,542

Insurance agents and brokers...............................................................................................
332,118
17,957,535

333,972

179,428

468,875

195,399

1,603,631

7,989,875

Insurance services...............................................................................................
41,389
1,808,997

59,344

36,463

44,165

10,004

266,654

572,662

Real estate...............................................................................................
757,791
32,665,375
974,965
Real estate property managers...............................................................................................
54,616
1,574,693
70,661

260,672
13,943

409,738
40,818

563,385
58,479

717,267
108,123

13,553,191
407,195

Operators and lessors of buildings...............................................................................................
9,049
828,204
76,947

2,045

16,749

122,724

95,041

8,057

Operators and lessors, other than buildings...............................................................................................
5,437
436,848
38,784

1,320

11,156

51,374

26,477

61,645

235,523
--

328,297
2,346

208,374
4,050

431,183
10,589

12,867,821
152,823

Real estate agents and brokers...............................................................................................
663,123
27,185,203
710,480
Title abstract companies...............................................................................................
9,888
326,465
8,885
69,206

7,841

10,373

118,384

45,854

55,650

Services...............................................................................................
8,407,991
298,983,752
10,951,907
Hotels and other lodging places...............................................................................................
49,754
4,812,662
526,918
Hotels, motels, and tourist courts...............................................................................................
33,717
3,738,895
421,938

Subdividers and developers...............................................................................................
15,679
2,313,962

2,710,252
21,023
18,572

10,676,698
67,096
49,920

3,597,804
602,650
469,033

29,645,925
704,136
549,476

105,774,261
96,500
67,442

Rooming and boarding houses...............................................................................................
9,323
717,638
45,314

24,832

1,745

12,019

75,356

120,971

59,666

706

5,157

58,262

33,689

4,226

Personal services...............................................................................................
1,384,187
31,286,346
1,107,178
Coin-operated laundry and dry cleaning...............................................................................................
13,626
725,450
71,957

512,263
22,374

2,528,857
135,750

303,620
19,497

3,065,418
45,228

8,535,622
74,629

dry cleaning, garment, carpet, and upholstery...............................................................................................
59,250
3,720,470
215,344
110,104

Camps and camping parks...............................................................................................
6,714
356,130

Other cleaning services, including laundry,

18

411,564

52,051

707,563

460,090

Photographic portrait studios...............................................................................................
39,831
1,286,325
Beauty shops...............................................................................................
440,119
10,944,644

67,693
265,921

16,702
210,017

53,278
1,449,596

5,557
111,073

64,683
1,430,067

199,640
3,165,123

Barber shops...............................................................................................
65,980
1,370,754

38,088

48,908

139,740

13,218

108,633

635,163

Funeral service and crematories...............................................................................................
9,779
1,006,303
63,955

9,997

14,166

28,340

61,488

203,853

Miscellaneous personal services, including
valet parking...............................................................................................
755,601
12,232,399

384,220

94,161

324,762

73,884

647,758

3,797,124

Business services...............................................................................................
2,097,503
53,537,140

2,266,856

482,960

936,394

454,370

4,643,867

15,060,260

Advertising, except direct mail...............................................................................................
66,910
3,213,943

20,260

38,210

7,174

71,400

794,675

Consumer credit reporting and collecting services...............................................................................................
2,725
14,934
18
-Janitorial and related services to buildings...............................................................................................
440,598
7,612,937
205,740
45,126

74,280

6
44,565

-47,616

-1,580,377

*2,571
2,390,339

Computer and data processing services...............................................................................................
222,640
4,130,464
222,408

31,635

57,370

39,159

137,513

1,550,774

54,724
12,358

145,982
26,269

18,494
25,991

237,193
54,895

1,655,768
195,855

Mailing, reproduction, commercial art and
photography, and stenographic services...............................................................................................
199,797
5,204,748
245,942
Computer repair, maintenance, and leasing...............................................................................................
41,267
1,854,346
110,593
Equipment rental and leasing, except computer
and automotive...............................................................................................
28,367
1,097,085

302,916

6,867

30,904

48,281

69,679

160,150

Other business services...............................................................................................
1,095,199
30,408,684

1,104,958

311,989

593,088

267,655

2,492,808

8,310,128

291,021
6,263

981,469
2,756

346,618
31,406

2,803,947
48,137

2,776,816
-11,616

Automotive repair and services...............................................................................................
386,169
24,099,954
1,028,852
Automotive rentals or leasing, without drivers...............................................................................................
7,994
982,857
138,619
Automobile parking, except valet...............................................................................................
*1,979
*137,363
*3,588

*2,879

*48,655

*6,401

*2,538

*24,377

649,361

214,627

825,605

237,043

2,373,514

2,029,115

Automotive services, except repair...............................................................................................
91,937
4,553,572
237,284
Miscellaneous repair services...............................................................................................
256,398
9,596,230
291,921

67,252
43,765

104,454
209,041

71,767
121,978

379,759
777,236

734,941
2,094,188

TV and audio equipment repair...............................................................................................
18,651
583,642
14,196

Automotive repair shops...............................................................................................
284,260
18,426,162

307

15,573

3,762

42,369

173,180

Electrical repair, except TV and audio equipment...............................................................................................
56,115
1,998,326
41,284
9,082

37,054

39,626

154,054

425,172

Reupholstery and furniture repair...............................................................................................
51,540
1,745,311
32,550
Other miscellaneous repair...............................................................................................
130,092
5,268,951
203,891

9,150
25,226

80,983
75,431

10,029
68,561

245,150
335,663

543,719
952,117

293,344

74,548

88,305

25,007

123,555

382,581

Motion picture and video production...............................................................................................
59,650
1,669,363
209,969

61,656

23,896

13,293

50,522

314,097
*8,197

Motion pictures...............................................................................................
70,239
2,435,655
Motion picture and tape distribution and
allied services...............................................................................................
*220
*15,468

*43

--

--

*112

--

Motion picture theaters...............................................................................................
*585
*108,158

*2,551

*353

*4,395

*4,128

*17,630

*7,447

Video tape rentals...............................................................................................
9,784
642,666

80,781

12,540

60,014

7,474

55,403

52,840

Amusement and recreation services, except
motion pictures...............................................................................................
638,344
13,575,585

932,474

113,284

395,065

156,958

579,646

3,515,454

related services...............................................................................................
332,572
6,086,148

426,904

36,504

106,440

36,290

126,190

2,082,817

Bowling centers...............................................................................................
*611
*196,719
Professional sports and racing,

*20,697

*631

*741

*19,315

*40,686

*29,216

Entertainers, producers, agents, and

18

including promoters and managers..........................

92,521

2,957,497

235,732

16,296

25,197

26,918

103,328

793,740

Other amusement and recreation services.................

192,141

4,077,585

231,825

58,272

231,057

71,834

298,366

537,029

Physical fitness facilities..............................................
Footnotes at end of table.

20,499

257,636

17,316

1,581

31,631

2,601

11,076

72,651

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Industrial group

Number

Business

of returns

receipts

Depreciation
1
deduction

(1)

(2)

(3)

Rent paid
on machinery

Rent paid
on other

and
1
equipment

business
1
property

deduction 1,2

Payroll 1,3

less deficit

(4)

(5)

(6)

(7)

(8)

2,936,762
903,771
922,144
49,683
293,504
172,330
58,044
2,444
60,609
60,028
414,207
1,136,451
229,969
135,110
22,306
72,363
111,369
7,985
277,097
31,293
358,648
15,395
135,721
12,350

816,422
155,175
345,534
9,512
96,583
41,722
20,178
3
82,259
7,819
57,637
209,803
22,395
103,082
1,984
18,929
25,193
2,373
132,824
34,228
208,122
1,229
10,018
37,315

10,328,175
2,768,238
5,069,391
174,168
515,139
386,928
75,379
6,621
482,504
247,628
602,180
2,871,181
158,286
616,831
459
366,104
462,139
181,495
837,025
239,933
818,050
11,909
56,533
51,820

32,288,203
14,393,722
9,197,277
838,060
1,263,532
633,473
262,404
550,247
296,355
541,271
4,311,862
12,088,877
1,107,534
1,880,589
1,303,979
1,820,064
936,982
293,532
3,855,656
1,598,057
14,824,099
171,742
1,143,524
769,023

Services-Continued
Medical and health services...............................................................................................
804,491
72,697,040
1,765,853
491,645
Offices of physicians...............................................................................................
186,744
25,959,238
400,369
159,060
Offices of dentists...............................................................................................
102,684
24,607,538
742,157
132,732
Offices of osteopathic physicians...............................................................................................
7,816
1,387,908
28,734
2,418
Offices of chiropractors...............................................................................................
29,008
3,673,340
131,102
50,571
Offices of optometrists...............................................................................................
13,916
2,837,071
111,430
18,011
Offices of podiatrists...............................................................................................
5,502
775,701
23,736
15,333
Registered and practical nurses...............................................................................................
47,203
754,768
4,281
1,060
Nursing and personal care facilities...............................................................................................
37,014
1,977,357
63,782
11,845
Medical and dental laboratories...............................................................................................
23,473
1,575,121
29,240
8,266
Other medical and health services...............................................................................................
351,132
9,148,998
231,020
92,348
Legal services...............................................................................................
294,356
25,686,437
529,867
228,533
Educational services...............................................................................................
251,859
2,965,746
118,235
19,242
Child day care...............................................................................................
520,815
6,374,781
292,953
28,545
Ministers and chaplains...............................................................................................
188,913
2,193,077
37,224
34,582
Engineering services...............................................................................................
95,904
3,958,173
182,945
28,825
Architectural services...............................................................................................
46,661
2,970,299
128,667
12,961
Surveying services...............................................................................................
14,859
859,097
38,496
1,678
Accounting, auditing, and bookkeeping services...............................................................................................
311,338
8,377,809
404,615
61,199
Management services...............................................................................................
75,676
3,095,004
75,903
22,320
Consulting services...............................................................................................
823,237
27,841,973
847,003
223,861
Public relations...............................................................................................
15,808
444,346
9,129
4,790
Counseling, except health practitioners...............................................................................................
81,480
2,176,398
73,472
13,208
Nature of business not allocable...............................................................................................
174,652
2,084,714
61,265
9,541
Footnotes at end of table.

Interest paid

Net income

19

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group

Number
of returns

Business
receipts

(9)

(10)

Depreciation
1
deduction

Rent paid

Rent paid

on machinery
and
1
equipment

on other
business
1
property

Net income

(11)

(12)

(13)

(14)

(15)

(16)

6,019,606

17,818,167

7,374,766

71,528,212

210,464,545

208,472
182,954
34,845
135

250,388
224,568
60,325
3,077

300,130
242,024
63,947
14,256

3,304,027
3,105,804
619,127
13,409

4,717,972
3,810,979
964,434
30,825

9,002
119,474
19,498
24,519
1,000
--

80,004
74,453
6,710
12,703
13,117
--

39,863
102,444
21,514
15,579
42,527
--

207,597
1,587,244
678,427
67,212
131,011
--

464,827
2,071,244
279,648
258,458
647,079
*1,456

Mining...............................................................................................
73,399
4,195,799
171,524
37,787
Metal mining...............................................................................................
**
**
**
**
Coal mining...............................................................................................
**18
**146,954
**1,542
**2,019
Oil and gas extraction...............................................................................................
70,499
3,759,619
146,480
18,481
Quarrying and nonmetallic minerals, except fuels...............................................................................................
2,882
289,225
23,503
17,287

31,828
**
**38
16,393
15,396

50,229
**
**269
40,000
9,960

218,596
**
**10,446
145,934
62,216

935,145
**
**8,474
891,964
34,706

Construction...............................................................................................
1,883,389
117,797,385
3,438,034
917,456
General building contractors and operative builders...............................................................................................
219,636
27,285,027
458,087
99,582
General building contractors...............................................................................................
196,874
24,271,116
404,889
86,993
Operative builders...............................................................................................
22,762
3,013,912
53,198
12,589
Heavy construction contractors...............................................................................................
17,572
2,319,559
171,627
99,517
Highway and street construction...............................................................................................
2,425
324,076
33,008
12,275
Heavy construction, except highway...............................................................................................
15,148
1,995,484
138,619
87,242
Special trade contractors...............................................................................................
1,646,181
88,192,798
2,808,320
718,357
Plumbing, heating, and air conditioning...............................................................................................
114,885
9,650,171
305,458
40,102
Painting and paperhanging...............................................................................................
212,684
7,009,851
187,869
56,442
Electrical work...............................................................................................
95,012
7,261,582
157,917
33,388
Masonry, stonework, tile setting, and plastering...............................................................................................
174,848
9,945,308
217,418
78,985
Carpentering and flooring...............................................................................................
494,166
20,390,798
510,991
94,530
Roofing, siding, and sheet metal work...............................................................................................
103,223
7,381,297
223,667
50,580
Concrete work...............................................................................................
41,867
3,251,815
89,121
24,525
Miscellaneous special trade contractors...............................................................................................
409,497
23,301,976
1,115,879
339,804
Manufacturing...............................................................................................
328,693
28,366,414
1,257,300
337,844
Food and kindred products...............................................................................................
9,105
2,013,290
35,344
1,593
Textile mill products...............................................................................................
*1,466
*314,157
*9,834
*440
Apparel and other textile products...............................................................................................
24,077
1,832,455
63,073
26,161
Lumber and wood products, except furniture
(including logging)...............................................................................................
56,405
6,870,543
441,537
111,981
Furniture and fixtures...............................................................................................
20,926
1,454,591
37,740
1,104
Printing, publishing, and allied industries...............................................................................................
68,789
3,928,261
107,673
64,346
Leather and leather products...............................................................................................
*545
*84,949
*1,323
*39
Stone, clay, and glass products...............................................................................................
10,469
537,011
30,864
2,192
Primary metal industries...............................................................................................
3,143
64,968
299
-Fabricated metal products...............................................................................................
32,467
1,615,534
85,136
25,106
Machinery, except electrical ...............................................................................................
31,200
4,410,373
308,394
49,953
Electrical and electronic equipment ...............................................................................................
13,908
924,416
14,107
1,543
Paper and allied products...............................................................................................
*2,527
*244,029
*4,767
*5,349
Other manufacturing industries...............................................................................................
53,667
4,071,837
117,209
48,039
Transportation and public utilities...............................................................................................
603,387
38,610,938
2,867,930
1,075,181
Local and interurban passenger transit...............................................................................................
85,448
2,501,859
106,007
262,533
Taxicabs...............................................................................................
50,526
1,255,502
23,564
244,036
Bus and limousine transportation...............................................................................................
**34,922
**1,246,357
**82,443
**18,498
Other highway passenger transportation...............................................................................................
**
**
**
**
Trucking and warehousing ...............................................................................................
392,563
28,321,638
2,597,562
694,308
Trucking, local and long distance, including
trash collection without own dump...............................................................................................
287,801
26,282,331
2,571,215
658,193
Courier or package delivery service...............................................................................................
101,462
2,007,028
26,009
36,115
Public warehousing...............................................................................................
3,300
32,280
338
-Water transportation...............................................................................................
5,585
330,101
6,509
2,086
Air transportation...............................................................................................
7,012
228,384
9,306
2,326
Transportation services...............................................................................................
58,545
4,868,976
86,369
50,005
Travel agents and tour operators...............................................................................................
23,789
2,810,724
24,079
2,856
Other transportation services...............................................................................................
34,756
2,058,252
62,290
47,149
Communication services...............................................................................................
46,079
2,105,750
50,157
60,925
Utilities, including dumps, snowplowing,
road cleaning, etc................................................................................................
8,155
254,229
12,020
2,999
Footnotes at end of table.

608,458
94,829
76,531
18,298
1,863
1,428
435
511,766
41,999
27,759
47,794
43,441
88,309
82,115
19,054
161,294
593,529
21,419
*51
81,144

904,233
216,054
199,916
16,138
36,627
3,941
32,686
651,552
79,408
30,569
33,139
38,339
125,273
36,161
31,403
277,261
372,067
8,926
*7,196
12,651

17,696,645
3,846,220
3,286,950
559,270
272,569
29,300
243,269
13,577,856
1,362,162
1,094,241
1,305,786
2,024,045
2,322,119
1,391,472
597,110
3,480,921
3,751,927
127,274
*11,618
426,064

25,278,038
3,789,831
3,354,908
434,924
337,663
31,344
306,319
21,150,544
1,837,403
2,284,408
1,508,528
2,426,316
6,381,469
1,373,566
437,475
4,901,380
5,224,914
153,135
*56,103
348,296

55,389
46,073
100,814
*1,864
10,059
*212
45,699
90,272
19,228
*4,133
117,172
323,062
59,115
26,655
**32,460
**
193,341

127,807
10,151
40,097
*454
7,904
*1,063
11,229
90,002
4,940
-49,647
713,244
46,983
24,993
**21,990
**
600,190

751,939
230,928
515,708
*28,267
90,136
*3,973
265,085
774,752
81,958
*18,235
425,989
3,154,823
112,896
-**112,896
**
2,262,840

729,600
496,691
821,043
*20,557
117,243
*19,863
320,403
934,652
257,765
*9,558
940,004
7,926,480
750,039
435,791
**314,248
**
5,589,350

186,556
6,785
-4,357
8,522
31,988
18,753
13,235
19,255

592,737
7,049
*403
4,020
5,127
48,411
12,602
35,809
6,928

2,173,736
89,104
-23,337
42,181
325,691
94,349
231,341
353,871

4,821,303
749,258
*18,790
92,433
94,641
649,108
273,256
375,851
668,313

6,485

1,586

34,007

82,595

Agricultural services, forestry, and fishing...............................................................................................
399,442
20,954,073
1,144,957
Agricultural services...............................................................................................
341,484
18,101,406
930,232
Veterinary services, including pets...............................................................................................
17,654
3,405,008
113,240
Livestock breeding...............................................................................................
3,928
291,212
6,064
Animal services, except livestock breeding,
and veterinary...............................................................................................
62,918
2,466,215
118,087
Landscape and horticultural services...............................................................................................
216,367
9,626,182
632,903
Farm labor, management, and crop services...............................................................................................
40,617
2,312,789
59,938
Forestry, except logging...............................................................................................
12,712
972,404
60,433
Commercial fishing...............................................................................................
44,828
1,875,797
154,021
Hunting and trapping...............................................................................................
418
4,466
271

20

Payroll 1,3

21,512,587

All nonfarm industries...............................................................................................
12,702,663
762,301,189

20

Interest paid
deduction 1,2

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group

Number

Business

Depreciation

Rent paid
on machinery

Rent paid
on other

Interest paid

of returns

receipts

deduction ¹

and

business

deduction 1,2

equipment ¹

property ¹

(9)

(10)

Payroll 1,3

Net income

(11)

(12)

(13)

(14)

(15)

(16)

Wholesale and retail trade...............................................................................................
1,788,907
212,651,235

3,040,082

790,771

5,943,891

1,774,553

13,914,579

23,979,248

Wholesale trade...............................................................................................
238,064
34,054,594
Durable goods, including machinery,

397,039

72,882

362,351

195,064

1,181,234

5,537,275

wood, metals, etc................................................................................................
147,915
18,128,309

212,600

40,940

187,997

95,954

669,147

3,733,044

184,439
2,643,043

31,942
717,889

174,354
5,581,540

99,109
1,579,489

512,087
12,733,345

1,804,231
18,441,973

33,498
16,789

104,118
35,116

141,258
38,896

652,799
216,863

1,010,600
409,662

Nondurable goods, including food, fiber,
chemicals, etc................................................................................................
90,149
15,926,285
Retail trade...............................................................................................
1,550,843
178,596,641
Building materials, paint, hardware,
garden supply, and mobile home dealers...............................................................................................
54,950
7,547,713
189,459
Lumber and other building materials dealers...............................................................................................
22,416
2,423,031
75,142
Paint, glass, and wallpaper stores...............................................................................................
9,683
557,560
5,745

804

16,118

8,246

106,523

48,654

9,704

40,724

35,613

137,204

298,133

5,905
297

10,626
1,534

45,260
13,243

123,136
69,073

179,703
74,449

35,713

5,202

132,105

20,994

160,515

469,249

Variety stores...............................................................................................
8,536
1,319,888
9,388
Computer and software stores...............................................................................................
5,805
1,076,206
13,119

1,581
709

74,748
24,069

5,324
2,101

68,149
41,537

174,181
116,411

Hardware stores...............................................................................................
9,098
2,355,550

31,897

Retail nurseries and garden supply stores...............................................................................................
10,163
1,582,317
65,051
Mobile home dealers...............................................................................................
3,590
629,255
11,623
General merchandise stores...............................................................................................
26,145
3,797,667

2,912

33,288

13,569

50,830

178,658

Food stores...............................................................................................
90,791
29,582,770

Other general merchandise stores...............................................................................................
11,803
1,401,573
13,205
319,921

86,264

675,400

190,845

1,751,460

1,673,065

Grocery stores...............................................................................................
57,082
23,102,240
Retail bakeries...............................................................................................
9,330
1,207,268

223,996
36,732

61,464
8,909

456,023
55,932

159,168
12,477

1,189,754
185,278

1,107,273
143,360

Miscellaneous food stores...............................................................................................
24,379
5,273,262

59,193

15,891

163,445

19,201

376,428

422,432

Automotive dealers and service stations...............................................................................................
123,584
42,752,254
329,727
Motor vehicle dealers--new car

68,825

559,675

345,799

1,963,632

2,144,722

3,369

4,123

1,811

7,577

42,666

44,059

Motor vehicle dealers--used cars only...............................................................................................
53,499
13,594,078
51,812

dealers (franchised)...............................................................................................
8,326
909,077

5,559

138,470

122,889

528,164

890,358

Auto parts and accessories and
selected home supply stores...............................................................................................
24,160
2,907,177
33,057

29,264

48,806

29,726

181,843

372,453

Gasoline service stations...............................................................................................
20,993
19,938,343

183,982

27,269

328,746

118,591

1,027,137

588,965

Boat dealers...............................................................................................
3,435
935,181
9,564
Miscellaneous automotive dealers...............................................................................................
13,172
4,468,396
47,944

57
2,553

16,011
25,831

14,704
52,312

27,293
156,528

32,256
216,631

80,999

48,467

469,791

57,482

425,348

886,813

Men's and boys' clothing stores...............................................................................................
*3,978
*345,381
*940

*13,962

*48,496

*991

*22,626

*42,919

2,557
1,525

89,669
46,452

4,192
10,500

68,357
41,771

114,699
123,180

Apparel and accessory stores...............................................................................................
73,824
6,532,943

Women's ready-to-wear stores...............................................................................................
10,977
906,359
10,231
Women's accessory and specialty stores...............................................................................................
9,245
887,852
7,316
Family clothing stores...............................................................................................
10,670
1,002,965

13,764

606

67,558

17,159

88,456

109,892

Shoe stores...............................................................................................
4,593
1,065,495
Apparel and accessory stores, not

6,821

9,237

68,133

4,083

39,921

96,710

elsewhere classified...............................................................................................
34,361
2,324,892

41,929

20,579

149,483

20,556

164,218

399,413

Furniture and home furnishings stores...............................................................................................
67,456
8,131,963
225,517

32,343

334,622

98,853

886,545

973,360

114,830

7,474

149,463

45,738

368,531

276,877

32,739

11,385

71,696

38,806

243,454

287,377

10,786
2,691

60,275
42,132

10,440
1,826

152,894
93,049

217,964
132,858

Furniture stores...............................................................................................
17,012
3,069,762
Home furnishings and equipment
stores, except appliances...............................................................................................
23,521
2,294,950

Household appliance stores...............................................................................................
15,374
1,349,565
39,150
Television, audio, and electronic stores...............................................................................................
3,489
941,408
18,679
Music and record stores...............................................................................................
8,060
476,278

20,118

6

11,056

2,044

28,616

58,284

Eating and drinking places...............................................................................................
171,271
22,247,096

527,990

170,355

1,285,130

301,977

3,841,142

2,306,868

Eating places...............................................................................................
90,179
17,428,838
Drinking places...............................................................................................
35,327
3,414,362

435,910
70,472

134,984
21,597

1,092,033
138,446

226,289
67,633

3,314,046
455,047

1,585,832
414,357

Catering services...............................................................................................
45,765
1,403,896

21,608

13,774

54,652

8,054

72,049

306,679

Miscellaneous retail stores...............................................................................................
942,822
58,004,235
Drug stores...............................................................................................
4,177
3,800,883

933,717
23,311

272,935
5,586

2,020,700
49,261

422,281
9,402

3,051,904
290,459

8,977,295
266,450

Liquor stores...............................................................................................
9,681
4,170,549

40,162

23,564

174,718

30,846

173,625

221,932

Used merchandise and antique stores...............................................................................................
58,613
2,891,716
54,840

41,828

280,352

20,361

116,863

396,717

Sporting goods and bicycle shops...............................................................................................
14,791
2,504,654
36,363
Book stores...............................................................................................
3,388
629,230
10,125

2,340
455

74,280
48,451

28,752
6,872

120,854
78,682

212,641
107,560

Stationery stores...............................................................................................
3,568
1,008,795

11,900

5,486

62,358

13,317

77,135

119,136

Jewelry stores...............................................................................................
18,751
2,782,321
22,959
Hobby, toy, and game shops...............................................................................................
12,424
727,017
7,983

5,364
794

142,636
83,820

20,064
7,200

148,647
36,274

435,825
65,928

Camera and photographic supply stores...............................................................................................
*1,816
*346,505
*5,431

*3,515

*26,409

--

*18,980

*60,837

Luggage and leather goods stores...............................................................................................
*2,407
*187,982
*1,018

*199

*10,291

*2,383

*6,256

*17,302

Fabric and needlework stores...............................................................................................
3,778
294,595
5,421
Catalog or mail order...............................................................................................
40,422
1,452,851
11,131

452
957

20,214
7,306

1,300
2,576

32,428
36,392

39,482
277,224

89,147

6,462

5,309

5,741

36,617

284,509

Sales by door-to-door, telephone, etc................................................................................................
554,128
15,192,137
284,593
Gift, novelty, and souvenir shops...............................................................................................
34,873
2,620,021
30,151

Vending machine selling...............................................................................................
20,123
1,492,868

65,308
23,037

227,392
191,318

101,879
20,723

309,326
195,363

4,279,472
255,561

Fuel oil dealers...............................................................................................
4,036
1,675,073

24,813

2,281

3,383

8,719

67,551

75,863

Florists...............................................................................................
27,675

2,725,782

73,085

18,236

112,963

24,554

442,963

300,996

Other retail shops...............................................................................................
128,171
13,501,255
Footnotes at end of table.

201,283

67,072

500,238

117,591

863,490

1,559,861

21

Sole Proprietorship Returns, 1997

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Net Income Status and Industrial Groups--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Industrial group

Number

Business

Depreciation

Rent paid
on machinery

Rent paid
on other

Interest paid

of returns

receipts

deduction ¹

and

business

deduction 1,2

equipment ¹

property ¹

(9)

(10)

(11)

Payroll 1,3

Net income

(12)

(13)

(14)

(15)

(16)

Finance, insurance, and real estate...............................................................................................
967,775
63,459,200
1,267,847

488,663

990,494

621,143

2,765,951

27,193,534

Finance...............................................................................................
112,538
14,824,876
152,120
Credit agencies and mortgage bankers...............................................................................................
12,272
909,642
9,423

49,968
4,738

159,179
10,349

114,323
3,643

330,339
28,016

3,495,522
289,182
1,595,959

Security and commodity brokers and services...............................................................................................
46,213
8,301,330
52,338

22,664

68,119

48,146

153,962

8,467

1,213

12,171

5,669

31,114

446,802

Investment advisors and services...............................................................................................
27,539
2,061,843
36,277
Commodity contract brokers, exchanges

20,913

54,736

41,718

111,858

967,665

Security brokers and dealers...............................................................................................
15,721
4,670,513

and services...............................................................................................
2,954
1,568,975

7,594

537

1,212

759

10,991

181,493

Other financial services...............................................................................................
54,053
5,613,904
Insurance agents and brokers...............................................................................................
262,182
16,843,268

90,359
310,257

22,567
171,679

80,711
445,183

62,534
174,177

148,361
1,572,146

1,610,381
8,301,051

Insurance services...............................................................................................
30,930
1,624,550

52,690

33,260

36,342

8,629

241,676

643,201

Real estate...............................................................................................
562,126

752,780

233,755

349,790

324,014

621,790

14,753,760

Real estate property managers...............................................................................................
36,875
1,262,174
30,791
Operators and lessors of buildings...............................................................................................
3,848
524,107
44,389

9,443
210

37,091
11,521

12,416
49,275

74,946
71,859

522,838
94,305

30,166,506

Operators and lessors, other than buildings...............................................................................................
3,454
407,520
32,030
Real estate agents and brokers...............................................................................................
499,629
25,910,293
602,012
Title abstract companies...............................................................................................
9,887
326,447
8,885
Subdividers and developers...............................................................................................
8,432
1,735,966

1,285

9,175

44,916

24,244

118,012

215,515
--

282,095
2,345

164,767
4,047

411,881
10,570

13,491,101
152,833

34,674

7,303

7,563

48,593

28,290

374,671

Services...............................................................................................
6,512,423
274,362,316
8,276,380
Hotels and other lodging places...............................................................................................
28,982
3,214,241
289,428
Hotels, motels, and tourist courts...............................................................................................
18,304
2,408,853
213,986

2,156,738
14,365
12,062

9,074,357
52,569
40,307

2,610,013
280,460
217,354

26,689,407
464,522
362,495

114,268,832
430,621
313,261

Rooming and boarding houses...............................................................................................
5,296
507,338
26,768

1,599

7,106

25,852

76,452

89,912

48,673
774,855

704
375,343

5,156
2,059,516

37,254
246,178

25,575
2,735,201

27,448
9,708,330

Coin-operated laundry and dry cleaning...............................................................................................
10,166
579,508
41,148

13,839

90,670

11,924

44,203

111,621

dry cleaning, garment, carpet, and upholstery...............................................................................................
44,025
3,124,924
156,146
73,463
Photographic portrait studios...............................................................................................
26,706
1,180,857
50,238
12,547

362,519
50,611

40,583
5,196

618,602
63,6

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A04f0aa6735edc7ba. Public record. Not legal advice.