# Sole Proprietorship Returns, 2006

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Sole Proprietorship Returns, 2006
by Jonathan Dent, Jeff Curry, and Justin Bryan

F

or Tax Year 2006, there were approximately
22.1 million individual income tax returns that
reported nonfarm sole proprietorship activity, a
2.8-percent increase from 2005. Profits for these returns grew to a level of $278.0 billion in 2006, a 3.0percent increase from 2005. In constant dollars, total
nonfarm sole proprietorship profits decreased for the
first time since Tax Year 2001, by 0.4 percent, after
increasing 5.5 percent in 2005. The professional,
scientific, and technical services sector, representing 24.1 percent of total sole proprietorship profits
at $67.0 billion, had the largest profits of any sector,
increasing 9.8 percent from 2005.
Reporting the second largest profits of any sector was the health care and social assistance sector,
with 16.0 percent of total profits, at $44.5 billion.
Receipts and deductions increased 4.5 percent and
5.0 percent for all sole proprietorships, respectively.
The construction sector reported the largest percentage of total business receipts and deductions among
all industrial sectors, with 18.5 percent and 19.9
percent, respectively. This sector reported a 6.5-percent increase in receipts and a 6.3-percent increase
in deductions. Although not among the larger of the
industrial sectors, the finance and insurance sector
reported the largest percentage increase in both receipts and deductions, with a 13.8-percent increase
in business receipts and an 18.9-percent increase in
deductions.
Among all industrial sectors, the real estate and
rental and leasing sector experienced the most significant downturn in both profits and receipts from
Tax Years 2005 to 2006. After reporting the largest
percentage increase in profits in 2005 at 19.4 percent,
Jonathan Dent and Jeff Curry are economists with the Individual Research Section. Justin Bryan is an economist
with the Individual Returns Analysis Section. This article
was prepared under the direction of Mike Strudler, Chief of
Individual Research, and Jeff Hartzok, Chief of Individual
Returns Analysis.

profits in the real estate and rental and leasing sector
decreased by 18.5 percent in 2006.1 In dollar terms,
these profits fell from $33.3 billion reported in 2005
to $27.2 billion in 2006. This sector also reported
the largest percentage decrease in receipts for 2006,
dropping from $82.9 billion in 2005 to $77.2 billion
for 2006, a 6.9-percent decrease. In 2005, this sector had reported the largest percentage increase in
receipts for all sectors, at 17.4 percent.
The North American Industry Classification System (NAICS) for industrial coding was introduced in
Tax Year 1998. Due to coding changes, comparisons
between data by industries from 1998–2006 with
1997 and prior years may show inconsistencies. A
reason for this was that many sole proprietorships
under the NAICS system were classified in completely different industrial groups, which makes prior-year
comparisons inappropriate. For example, in 1997,
finance, insurance, and real estate were grouped by
Standard Industrial Classification (SIC) codes as one
industry, while, under the NAICS system, the group
has been split into two industrial sectors. The industrial sectors based on the NAICS codes are reported
in Tables 1 and 2.

Returns and Receipts
The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2006
increased 2.8 percent to almost 22.1 million (Figure
A).2 The largest sector (in terms of number of returns), professional, scientific, and technical services,
increased 1.6 percent to 2.9 million returns. Similarly, the construction sector, which was the second
largest sector, also reported roughly 2.9 million
returns, with an increase of 3.4 percent. The largest
reported increase in number of returns for any industrial sector was in the administrative and support and
waste management and remediation services sector,
increasing 11.8 percent to 2.1 million returns.3 The
real estate and rental and leasing sector, which last

1

Curry, Jeff and Justin Bryan, “Sole Proprietorship Returns, 2005,” Statistics of Income Bulletin, Summer 2007, Volume 27, Number 1, pp. 6-64. Profits in the real estate
and rental and leasing sector increased from $27.9 million in 2004 to $33.3 million in 2005.
2 For 2006, the 22,074,953 nonfarm sole proprietorship returns accounted for an estimated 24,603,249 nonfarm businesses. 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 North American Industry Classification System (NAICS) was used to classify data by industries for 2006. 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 NAICS, the defi nitions are consistent.

70

3 Based on NAICS, the full name of the administrative and support services sector is the administrative and support and waste management and remediation services
sector. The waste management and remediation services portion makes up a small percentage of the overall numbers reported under this classification, which are detailed
in Table 1.

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,
Tax Years 2005 and 2006
[Number of returns is in thousands—money amounts are in billions of dollars]

Industrial sector

All nonfarm industries
Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and
related industries
Other services
Personal and laundry services
All other industries

Number of returns
Percentage
2005
2006
increase

Total business receipts
Percentage
2005
2006
increase

Total business deductions [1]
2005

2006

Percentage
increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

21,467.6
2,820.6
2,235.2
347.9
2,473.6
1,043.1
705.5
1,349.6
1,284.3
2,883.4

22,075.0
2,915.8
2,287.0
378.5
2,466.1
1,084.0
688.3
1,381.3
1,318.1
2,929.7

2.8
3.4
2.3
8.8
-0.3
3.9
-2.4
2.4
2.6
1.6

1,222.9
222.1
149.0
46.3
197.3
72.3
72.4
82.9
78.7
145.1

1,278.4
236.4
158.4
48.5
194.6
76.3
82.4
77.2
73.5
156.1

4.5
6.5
6.3
4.8
-1.4
5.4
13.8
-6.9
-6.6
7.5

953.4
187.3
122.6
41.4
188.0
62.3
52.9
49.6
45.7
84.2

1,001.1
199.0
129.9
43.7
185.7
65.5
62.9
50.0
46.4
89.1

5.0
6.3
6.0
5.5
-1.2
5.2
18.9
0.8
1.5
5.8

1,915.5
1,768.7
674.2
1,157.2

2,140.7
1,873.5
715.3
1,238.3

11.8
5.9
6.1
7.0

52.0
106.7
9.8
27.4

57.2
110.4
10.9
30.0

10.1
3.5
11.8
9.6

37.5
63.7
6.2
20.9

41.1
66.0
7.0
22.9

9.7
3.6
13.3
9.7

971.1
2,315.2
1,488.5
2,687.3

1,039.5
2,281.8
1,401.4
2,697.0

7.0
-1.4
-5.8
0.4

20.0
78.1
37.8
120.2

21.7
81.8
38.2
127.5

8.1
4.7
0.9
6.0

14.2
60.3
26.7
105.3

15.7
63.8
26.8
111.3

10.2
5.8
0.7
5.8

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

year reported a 14.4-percent increase in number of
returns, showed a more modest increase of 2.4 percent for 2006.
Total business receipts (the sum of “income from
sales and operations” and “other business income”)
for all nonfarm sole proprietorship industries increased 4.5 percent, from $1,222.9 billion to $1,278.4
billion.4 In the construction sector, the largest sector
in terms of business receipts and accounting for 18.5
percent of total business receipts, receipts increased
by 6.3 percent in 2006, down from 11.9 percent in
2005. The retail trade sector, the second largest sector in terms of business receipts, actually experienced
a percentage decrease in receipts in 2006, declining
by 1.4 percent in 2006.
Many of the industries with the highest percentage increases in receipts for 2006 were those sectors
that made up a relatively small segment of total busi-

ness receipts. Consequently, they had very little effect on the overall growth in total receipts. Among
these, the finance and insurance sector, despite reporting a 2.4-percent decrease in number of returns,
showed the highest percentage increase in total
business receipts among all industrial sectors, with a
13.8-percent increase.
The second largest percentage increase in receipts for 2006 was in the administrative and support
and waste management and remediation services
sector, increasing 10.1 percent. This was followed
closely by the 9.6-percent growth in the arts, entertainment, and recreation sector. The real estate and
rental and leasing sector, which showed the largest
percentage increase in receipts for Tax Year 2005,
reported the largest percentage decrease in receipts
among all industrial sectors for Tax Year 2006,
decreasing 6.9 percent. Overall, the percentage in-

4 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 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 incomes on their individual income tax returns.

71

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

crease in total business receipts, in constant dollar
terms, increased 1.1 percent in 2006, down from 5.4
percent and 3.9 percent in 2004 and 2005, respectively (Figure B).5

Deductions
Total business deductions (“cost of sales and operations” plus business expenses, including expenses for
home office) in current dollars increased 5.0 percent

from $953.4 billion for 2005 to $1,001.1 billion for
2006 (Figure A).6, 7 In addition to reporting the largest percentage increase in receipts, the finance and
insurance sector also reported the largest percentage increase in total business deductions, with 18.9
percent. The largest sector in terms of total business
deductions, the construction sector, reported a 6.3percent increase in deductions. The retail trade sector was the only sector to show a percentage decrease

Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2006
[Money amounts are in billions of dollars]

Total business receipts
Tax year

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Current
dollars

Total business deductions [1]

Constant dollars [2]
Percentage
Amount
increase

Current
dollars

Net income less deficit (profits)

Constant dollars [2]
Percentage
Amount
increase

Current
dollars

Constant dollars [2]
Percentage
Amount
increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

672.0
692.8
730.6
712.6
737.1
757.2
790.6
807.4
843.2
870.4
918.3
969.3
1,021.0
1,016.8
1,029.7
1,050.2
1,139.5
1,222.9
1,278.4

887.8
881.9
895.5
843.9
853.3
856.8
876.0
876.6
898.5
912.2
951.8
990.5
1,021.0
993.3
990.6
990.8
1,044.5
1,084.7
1,096.7

[3]
-0.7
1.5
-5.8
1.1
0.4
2.2
0.1
2.5
1.5
4.3
4.1
3.1
-2.7
-0.3
[4]
5.4
3.9
1.1

545.7
560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9
716.2
761.4
806.4
799.6
808.9
820.2
892.4
953.4
1,001.1

720.9
713.1
722.1
676.4
675.0
679.7
691.2
692.8
710.1
716.7
742.3
778.0
806.4
781.1
778.2
773.8
818.0
845.7
858.8

[3]
-1.1
1.3
-6.3
-0.2
0.7
1.7
0.2
2.5
0.9
3.6
4.8
3.6
-3.1
-0.4
-0.6
5.7
3.4
1.6

126.3
132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6
202.3
207.9
214.7
217.4
221.1
230.3
247.6
269.9
278.0

166.9
168.9
173.3
167.6
178.3
177.0
184.8
183.8
188.3
195.6
209.7
212.5
214.7
212.3
212.7
217.3
226.9
239.4
238.5

[3]
1.2
2.6
-3.3
6.4
-0.7
4.4
-0.6
2.5
3.9
7.2
1.3
1.1
-1.1
0.2
2.1
4.4
5.5
-0.4

[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. The deflator represents the annual average of current-weighted prices, based on 2000 = 100.
[3] Not calculated.
[4] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

5

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. Indices used for this article were:
Year
1988
1989
1990
1991
1992

72

Indices
75.7
78.6
81.6
84.4
86.4

Year
1993
1994
1995
1996
1997

Indices
88.4
90.3
92.1
93.9
95.4

Year
1998
1999
2000
2001
2002

Indices
96.5
97.9
100.0
102.4
103.9

Year
2003
2004
2005
2006

Indices
106.0
109.1
112.7
116.6

6 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, Profi t or
Loss From Business (or, to a lesser extent, on Schedule C-EZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense,
and are, therefore, reported as wages on Form 1040 and not on Schedule C. 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.
7 Business deductions include home office business deductions. 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 limited and
were included with other expenses, such as depreciation deductions, utilities, and “other” expenses on Schedule C.

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

in deductions, decreasing 1.2 percent. As shown in
Figure B, when accounting for inflation, total business deductions increased 1.6 percent in 2006, the
third straight year in which total inflation-adjusted
business deductions increased.
The cost of sales and operations, which represented 40.9 percent of total 2006 business deductions, increased 3.2 percent from its 2005 level to
approximately $409.7 billion (Figure C). Total business “expenses” (total business deductions minus the
cost of sales and operations) were $591.4 billion for
2006, a 6.3-percent increase from 2005. The main
components of total business expenses are highlighted in Figure D. The largest component, salaries and
wages, accounted for 13.0 percent of the total. For
2006, salaries and wages totaled $77.0 billion, a 2.6percent increase from 2005.
Closely following salaries and wages, accounting for 12.7 percent of total business expenses, was
the car and truck component which increased 6.2
percent from 2005 to $75.4 billion. The next largest
components were rent on business property, machinery, and equipment (6.9 percent), and depreciation
(6.6 percent). For 2006, rent on business property,
machinery, and equipment increased 2.8 percent to
$40.6 billion, while depreciation declined 0.2 percent
to $39.0 billion. Contract labor expenses showed
the largest increase in percentage share of business
expenses at 0.8 percent, up from 5.1 percent in 2005,
while salaries and wages showed the largest decrease
at 0.5 percent, down from 13.5 percent for 2005.
Historically, constant dollar depreciation increased every year from 1993 through 2002, with
the exception of 1995, when it decreased 1.9 percent
to $28.5 billion (Figure E).8 In 2003, under the
Jobs and Growth Tax Relief Reconciliation Act of
2003, the maximum allowable section 179 deduction
(which allows expensing of investment property in
the year of the purchase instead of depreciating these
over time) rose from $24,000 for 2002 to $100,000
for 2003. This led to constant dollar depreciation
increasing by 11.7 percent for 2003. This was the
highest growth in depreciation of any year from 1988
through 2006.
This 2003 legislative change, which initially
caused the accelerated increase in depreciation, was

Figure C
Components of Nonfarm Sole Proprietorship
Business Deductions, Tax Years 2005 and 2006
[Money amounts are in millions of dollars]

Business deductions

2005
(1)

953,391.5
Cost of sales and operations, total 396,875.8
38,101.7
Inventory, beginning of year
32,163.0
Cost of labor
252,887.7
Purchases
55,902.0
Materials and supplies
59,845.9
Other costs
42,024.5
Inventory, end of year
Business expenses, total [1]
556,515.7
14,449.5
Advertising expenses
71,013.1
Car and truck expenses
15,439.7
Commissions
28,223.6
Contract labor
1,061.8
Depletion
39,080.2
Depreciation [3]
2,798.3
Employee benefit programs
8,801.1
Home office business deductions [3]
1,260.2
Depreciation, Form 8829
19,000.9
Insurance
9,836.9
Legal and professional services
6,802.2
Meals and entertainment deducted
5,543.7
Mortgage interest

Business deductions, total [1, 2]

Other interest paid on business
indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Salaries and wages
Supplies
Taxes paid
Travel
Utilities
Other business deductions

6,565.9
12,835.6
1,251.9
9,135.7
30,349.0
14,976.1
75,091.2
28,858.6
16,797.5
11,308.3
22,910.3
101,044.7

2006

Percentage
increase

(2)

(3)

1,001,097.6
409,661.0
41,101.7
31,743.9
259,992.7
59,699.4
61,626.5
44,503.2
591,436.6
15,274.1
75,402.4
15,634.3
34,577.9
1,058.4
39,004.5
2,867.7
10,119.5
1,639.7
19,083.9
10,092.9
7,306.3
6,297.5

5.0
3.2
7.9
-1.3
2.8
6.8
3.0
5.9
6.3
5.7
6.2
1.3
22.5
-0.3
-0.2
2.5
15.0
30.1
0.4
2.6
7.4
13.6

7,214.5
13,024.7
1,276.9
9,350.3
31,229.2
15,726.0
77,038.7
32,136.9
17,660.0
11,861.2
23,842.8
110,762.7

9.9
1.5
2.0
2.3
2.9
5.0
2.6
11.4
5.1
4.9
4.1
9.6

[1] Includes returns with Schedule C-EZ, Net Profit from Business, attached. Because
only a total is reported for 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.
[2] Total business deductions are before subtraction of nonallowable "passive" activity
losses and any "passive loss" carryover from the prior years.
[3] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is
included in "home office business deductions" and excluded from "depreciation" shown
above.
NOTES: Detail may not add to totals because of rounding. Percentage increases were
calculated before rounding.

offset in subsequent years by trends of decreased
depreciation. From 2004 through 2006, constant dollar declines of depreciation were witnessed for all 3
years. In 2004, constant dollar depreciation deductions decreased by 0.2 percent. This downward trend

8

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. Following the enactment of this provision, the 179 deduction for all individuals (not just sole proprietors)
filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.

73

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Figure D
Nonfarm Sole Proprietorship Total Business Expenses, by Type of Expenses, Tax Year 2006 [1]
Type of expenses
Travel

2.0

Office expenses

2.2

Total interest

2.3

Advertising expenses

2.6

Commissions

2.6

Repairs

2.7

Taxes paid

3.0

Insurance

3.2

Utilities

4.0

Supplies

5.4

Contract labor

5.8

Depreciation [2]

6.6

Rent paid on machinery, equipment,
and other business property

6.9

Car and truck expenses

12.7

Salaries and wages

13.0

Other business deductions [3]

24.9

0

5

10

15

20

25

Percent of total
[1] Total business expenses equals all business deductions minus cost of sales and operations.
[2] Depreciation claimed on Form 8829, Expenses for Business Use of Your Home, is included in "home office business deductions" and excluded from
"depreciation" shown above. See footnote 3 below.
[3] Other business deductions includes: depletion; employee benefit programs; legal and professional services; pension and profit-sharing plans; meals and
entertainment; and home office business deductions. Other business deductions also includes all Schedule C-EZ, Net Profit from Business , deductions ($3.6
billion).
NOTES: Percents are based on an estimated total business expense of $591.4 billion. Detail may not add to 100 percent because of rounding.

was even more evident in 2005, as constant dollar
depreciation decreased 11.8 percent. In 2006, constant dollar depreciation decreased by 3.5 percent.
During this same 3-year period, section 179 limits
gradually increased for inflation, from $102,000 in
2004 to $105,000 in 2005, and $108,000 in 2006.9,10

74

Beginning with Tax Year 1992, certain smaller
businesses could elect not to itemize depreciation
and other business deductions by filing Schedule
C-EZ, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business.
(Schedule C and Schedule C-EZ are the source of

9 Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of section 179 deduction (the amount of depreciable property that one can
expense for the cost of certain qualifying property) increased from $24,000 for 2002 to $100,000 for 2003, $102,000 for 2004, $105,000 for 2005, and $108,000 for 2006.
For all tax returns that filed Form 4562, Depreciation and Amortization, the section 179 property deducted as an expense increased by 8.5 percent to $44.8 billion for 2005.
The Jobs Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased
the bonus percentage to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as
advantageous as immediate expensing and therefore likely had less effect on their depreciation deductions.
10 The amount deducted as section 179 property on returns that had a Schedule C rose slightly to $21.6 billion, from 2005 to 2006. This number does not reflect depreciation solely deducted on Schedule C as this could also include depreciation taken on Schedule E, Supplemental Income and Loss, and Schedule F, Profit or Loss From
Farming.

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2006
[Money amounts are in billions of dollars]

Current dollars
Tax year

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Net income

Deficit

Constant dollars [1]

Depreciation [2]

Percentage increase in constant dollars [1]

Net income

Deficit

Depreciation [2]

Net income

Deficit

Depreciation [2]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

145.5
152.4
161.7
162.4
173.5
177.0
187.8
191.7
200.1
210.5
226.2
233.4
245.2
250.2
257.3
269.1
290.5
314.8
326.8

19.2
19.7
20.2
20.9
19.5
20.5
21.0
22.5
23.4
23.8
23.9
25.5
30.5
32.8
36.2
38.8
42.9
44.8
48.7

26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6
29.1
30.6
32.2
33.4
36.6
41.8
42.9
39.1
39.0

192.2
194.0
198.2
192.3
200.8
200.3
208.1
208.2
213.2
220.6
234.5
238.5
245.2
244.4
247.5
253.9
266.3
279.2
280.3

25.4
25.1
24.8
24.8
22.6
23.2
23.3
24.4
24.9
25.0
24.8
26.0
30.5
32.0
34.8
36.6
39.3
39.8
41.8

34.5
31.2
29.0
27.4
27.0
28.3
29.0
28.5
29.2
30.0
30.2
31.3
32.2
32.7
35.3
39.4
39.3
34.7
33.5

[3]
0.9
2.2
-3.0
4.4
-0.3
3.9
[4]
2.4
3.4
6.3
1.7
2.8
-0.3
1.3
2.6
4.9
4.9
0.4

[3]
-1.1
-1.3
[4]
-8.8
2.8
0.3
4.8
2.1
0.3
-0.7
4.9
17.3
5.0
8.7
5.1
7.5
1.1
5.1

[3]
-9.6
-6.9
-5.8
-1.4
4.9
2.6
-1.9
2.4
2.9
0.7
3.7
2.8
1.4
8.0
11.7
-0.2
-11.8
-3.5

[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 . The deflator represents the annual average of current-weighted prices, based on 2000 = 100.
[2] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.
[3] Not calculated
[4] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

sole proprietorship statistics.) For Tax Year 2006,
taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting method; had no inventories; did not report a
deficit from the business; had only one business as a
sole proprietor; had no employees; were not required
to file Form 4562, Depreciation and Amortization,
for the business; 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 do not add to the totals.
Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on
Schedule C-EZ by industrial sector. For Tax Year
2006, approximately 4.0 million taxpayers filed
Schedule C-EZ, marking a 4.0-percent increase from
the number filed for 2005. Of returns filed for 2006
in the administrative and support services sector (the

largest filers of this schedule), taxpayers filed approximately 0.6 million Schedule C-EZ returns, or
29.1 percent of the total for that sector. For 2006,
business receipts from Schedule C-EZ filers totaled
$28.3 billion, or 2.2 percent of total business receipts
reported. Business deductions reported on Schedule
C-EZ returns accounted for only 0.4 percent of total
business deductions for all industries, or $3.6 billion
of the total $1,001.1 billion. Despite having the largest concentration of Schedule C-EZ filers, deductions
reported on Schedule C-EZ by the administrative and
support services sector accounted for only 1.1 percent of that sector’s total business deductions.

Profits and Losses
For 2006, many of the largest principal industrial
sectors reported either modestly increased or decreased sole proprietorship profits (net income less
deficit). Figure B presents total profits for all industries (in both current and constant dollars) since
75

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Figure F
All Nonfarm Sole Proprietorship Returns and Those with Schedule C-EZ, by Selected Industrial
Sectors, Tax Year 2006
[Money amounts are in millions of dollars]

Industrial sector

All nonfarm industries
Construction
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Arts, entertainment, and recreation
Other services
All other industries

Number of returns

Total business receipts

With
Schedule
C-EZ

With
Schedule
C-EZ

Percentage
of
total

Total

Percentage
of
total

Total

Total business deductions [1]
With
Percentage
Schedule
of
C-EZ
total

Total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

22,074,953
2,915,823
378,532
2,466,091
1,083,977
688,299
1,381,330
2,929,675

4,027,039
490,220
38,656
249,444
134,007
81,235
108,306
487,722

18.2
16.8
10.2
10.1
12.4
11.8
7.8
16.6

1,278,359.8
236,421.5
48,497.8
194,556.4
76,272.0
82,400.9
77,157.5
156,060.3

28,303.4
3,989.6
188.0
1,285.4
1,062.7
747.4
1,195.1
4,953.9

2.2
1.7
0.4
0.7
1.4
0.9
1.5
3.2

1,001,097.6
199,049.3
43,656.5
185,703.6
65,484.4
62,919.9
50,003.9
89,102.4

3,593.3
506.8
21.1
247.5
154.6
88.4
148.8
488.8

0.4
0.3
[2]
0.1
0.2
0.1
0.3
0.5

2,140,672
1,873,520
1,238,273
2,281,767

622,396
467,790
251,057
434,232

57,226.8
110,437.2
30,006.0
81,837.5

3,690.3
3,766.2
1,052.9
3,121.4

468.3
373.0
233.7
440.8

661,974

127,485.8

3,250.5

6.4
3.4
3.5
3.8
2.5

41,121.1
65,958.4
22,918.5
63,834.5

2,696,994

29.1
25.0
20.3
19.0
24.5

111,345.1

421.6

1.1
0.6
1.0
0.7
0.4

[1] Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.
[2] Less than 0.05 percent.
NOTES: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit from Business. See the text of this article
for a full list of the requirements to be eligible to file Schedule C-EZ.

1988, while Figure G presents profits by industrial
sector for 2005 and 2006.11 Total profits increased
3.0 percent from $269.9 billion for 2005 to $278.0
billion for 2006.
The professional, scientific, and technical services sector, which had the highest percentage of total
profits of all nonfarm sole proprietorships with 24.1
percent, reported the highest dollar increase in profits ($6.0 billion) and the second largest percentage
increase in profits with 9.8 percent. A smaller sector,
the administrative and support and waste management and remediation services sector reported a $1.7billion increase in profits from 2005. This represented the largest percentage change in profits for 2006,
increasing 12.0 percent to $16.2 billion The construction and health care and social assistance sectors
reported 8.0-percent and 3.3-percent increases in
profits, respectively. Interestingly, the real estate and
rental and leasing sector, which reported the largest
percentage increase in profits for 2005 with 19.4 percent, reported the largest decrease in profits for 2006
with 18.5 percent.
In constant dollars, total profits decreased 0.4
percent for 2006, after increasing by 5.5 percent in

76

Figure G
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Sectors, Tax Years 2005 and 2006
[Money amounts are in billions of dollars]

Industrial sector

Net income less deficit (profits)
Percentage
2005
2006
increase
(1)

(2)

(3)

All nonfarm industries

269.9

278.0

3.0

Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste
management and remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and
related industries
Other services
Personal and laundry services
All other industries

34.8
26.4
4.9
9.3
10.1
19.5
33.3
33.0
61.0

37.6
28.7
4.8
9.0
10.8
19.5
27.2
27.1
67.0

8.0
8.6
-2.0
-3.0
7.0
0.2
-18.5
-17.9
9.8

14.5

16.2

12.0

43.1
3.6
6.5

44.5
4.0
7.1

3.3
9.7
9.8

5.8

6.0

3.1

17.8
11.2
15.1

18.0
11.3
16.2

1.2
1.4
7.6

NOTES: Detail may not add to totals because of rounding. Percentage increases
were calculated before rounding.

11 Net income minus deficit (loss) before Federal income tax yields profits. Proprietors compute their tax on total “taxable income,” which includes their business profits,
plus any other income.

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

2005 (Figure B). Profits as a percentage of business
receipts also decreased for 2006. Figure H shows
net income less deficits as a percentage of business
receipts for 1988 through 2006. In general, this
percentage has been increasing from a low of 18.8
percent for 1988. This trend continued through Tax
Year 2005, when profits as a percentage of business
receipts peaked at 22.1 percent. However, in 2006,
profits as a percentage of business receipts decreased
to 21.7 percent. Figure E presents net income and
deficit separately for 1988 through 2006, in current
and constant dollars. For 2006, net income (in constant dollars) increased 0.4 percent, and net deficit (in
constant dollars) increased by 5.1 percent.

Industries
Using receipts as a measure of business size, Figures A and I show that construction was the largest
sole proprietorship industrial sector for 2006, with
18.5 percent of all business receipts (the third year
in a row that this sector was largest). Total receipts
for the construction sector, at $236.4 billion, were
6.5-percent higher than the $222.1 billion reported
for 2005, while deductions increased by 6.3 percent,
leading to an 8.0-percent increase in profits (to $37.6

billion). The second largest industrial sector was retail trade, with receipts totaling $194.6 billion. This
amount was 15.2 percent of all sole proprietorship
receipts for 2006, and it represented a 1.4-percent decrease from the 2005 amount. This was one of only
two major sectors (the other being real estate and
rental and leasing) where receipts declined for 2006.
Deductions and profits also decreased in this sector
by 1.2 percent and 3.0 percent, respectively. Retail
trade profits totaled $9.0 billion for 2006.
The third largest sector was professional, scientific, and technical services, which accounted for
12.2 percent of sole proprietorship receipts for 2006.
Receipts increased 7.5 percent to $156.1 billion, and
deductions increased 5.8 percent to $89.1 billion.
Although this sector was just the third largest sector
in terms of business receipts, the professional, scientific, and technical services sector had the largest
percentage of sole proprietorship profits, with 24.1
percent (Figure J). For 2006, the professional, scientific, and technical services sector’s profits went
from $61.0 billion to $67.0 billion, a 9.8-percent increase from 2005. The sector with the second largest
profits was health care and social assistance. These
profits rose to $44.5 billion for 2006, a 3.3- percent
increase from 2005, and represented 16.0 percent of

Figure H
Nonfarm Sole Proprietorship Net Income Less Deficit (Profits) as a Percentage of Business
Receipts, Tax Years 1988-2006
Percent
23

22.0

22
21.4
21.1
20.9

21

21.0

21.9
21.5

21.4

21.0

22.1
21.7

21.7

21.5

21.0

20.7

19.9

20
19.4
19.2

19

18.8

18
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Tax year

77

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Figure I
Nonfarm Sole Proprietorship Total Business Receipts, by Selected Industrial Sectors, Tax Year 2006
Arts, entertainment, and recreation

2.3

Wholesale trade (merchant wholesalers)

3.8

Administrative and support and waste
management and remediation services

4.5

Transportation and warehousing

6.0

Real estate and rental and leasing

6.0

Other services

6.4

Finance and insurance

6.4

Health care and social assistance

8.6

All other industries

10.0

Professional, scientific, and technical services

12.2

Retail trade

15.2

Construction

18.5

0

5

10

15

20

Percent of total
NOTES: Percents are based on an estimated total business receipts of $1.3 trillion. Detail may not add to 100 percent because of rounding.

Figure J
Nonfarm Sole Proprietorship Total Business Profits, by Selected Industrial Sectors, Tax Year 2006
Wholesale trade (merchant wholesalers)

1.7

Arts, entertainment, and recreation

2.6

Retail trade

3.2

Transportation and warehousing
Administrative and support and waste
management and remediation services
All other industries

3.9
5.8
5.8

Other services

6.5

Finance and insurance

7.0

Real estate and rental and leasing

9.8

Construction

13.5

Health care and social assistance

16.0

Professional, scientific, and technical services

24.1

0

5

10

15

20

Percent of total

78

NOTES: Percents are based on an estimated total business profits of $278.0 billion. Detail may not add to 100 percent because of rounding.
Profits is a designation for "net income less deficit," shown elsewhere in this article.

25

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

all sole proprietorship profits. This was followed by
construction (13.5 percent, as cited above) and real
estate and rental and leasing (9.8 percent) in terms of
overall sole proprietor profits.
Tax Year 2001 is the first year in which data
became available on the number of Limited Liability Companies (LLCs) among sole proprietorship
returns. LLC entities have the limited liability of
corporations but are taxed as sole proprietorships—
income and expenses flow through to the owner to
be taxed. In 2001, there were approximately 0.1
million sole proprietorship returns that indicated
status as an LLC (Figure K). This increased by 15.3
percent for 2002, 51.3 percent for 2003, 40.4 percent
for 2004, and 47.2 percent for 2005. For Tax Year
2006, the number of these sole proprietorships rose
to approximately 0.6 million, a 33.2-percent increase
from 2005. The 2006 level of LLCs among sole proprietorship returns accounts for 2.7 percent of total
nonfarm sole proprietorships, with the total number
of returns with LLCs having more than quadrupled
since 2001.

Summary
Profits for the 22.1 million returns with sole proprietorship activity for Tax Year 2006 grew by 3.0 per-

cent to $278.0 billion. In constant dollars, total nonfarm sole proprietorship profits decreased 0.4 percent,
after increasing 5.5 percent in 2005. This was the first
such decrease since Tax Year 2001. The professional,
scientific, and technical services sector had the largest profits of any sector, at $67.0 billion, representing
24.1 percent of total sole proprietorship profits, followed by the health care and social assistance sector,
at $44.5 billion, or 16.0 percent of total profits.
For all sole proprietorships, receipts and deductions increased 4.5 percent and 5.0 percent, respectively. The largest sole proprietorship industrial sector, based on business receipts, was the construction
sector, accounting for 18.5 percent of receipts. This
sector reported an 8.0-percent increase in profits.
The finance and insurance sector showed the largest
percentage increase in both receipts and deductions,
reporting a 13.8-percent increase in receipts and an
18.9-percent increase in deductions.
Filings of Schedules C-EZ increased 4.0 percent
in 2006, slightly less than the 4.5-percent increase
for 2005. The industrial sector experiencing the
most significant downturn in both profits and receipts
from Tax Years 2005 to 2006 was the real estate and
rental and leasing sector. After reporting the largest
percentage growth in profits in 2005 at 19.4 percent,

Figure K
Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax
Years 2001-2006
Tax year
2006

606,889

2005

455,734

2004

309,665

2003

220,615

2002

145,839

2001

126,437

0

100,000

200,000

300,000

400,000

Number of returns with LLCs

500,000

600,000

700,000

79

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

the real estate and rental and leasing sector reported
the largest percentage decrease in profits in 2006,
declining by 18.5 percent. Similarly, this sector also
reported the highest percentage increase in receipts
for 2005 among all other sectors, with 17.6 percent,
while reporting the largest percentage decrease in
2006, with 6.9 percent.

Data Sources and Limitations
The 2006 sole proprietorship estimates are based on
a stratified probability sample of unaudited individual
income tax returns, Form 1040 (including electronically filed returns), processed by the Internal Revenue Service during Calendar Year 2007. 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 C-EZ, 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 0.1 percent to
100 percent. The 2006 nonfarm sole proprietorship
data are based on a sample of 88,619 returns and a
population of 22,407,707 returns.12 The corresponding sample and population for the 2005 data were
82,689 and 21,756,709 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 estimates provided, the magnitude of the potential
sampling error must be known. Coefficients of variation (CVs) are used to measure that magnitude. Figure
L presents estimated coefficients of variation for the
number of returns and money amounts for selected
items and industrial sectors. Generally, the smaller the
coefficient of variation, the more reliable the estimate
is judged to be. See SOI Sampling Methodology and
Data Limitations in the back of this issue for a discussion of the reliability of estimates based on samples,
and the use of coefficients of variation for evaluating
the precision of estimates based on samples.

Figure L
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Sectors, Tax Year 2006
[Coefficients of variation are in percentages]
Coefficients of variation
Industrial sector

All nonfarm industries
Construction
Specialty trade contractors
Wholesale trade (merchant wholesalers)
Retail trade
Transportation and warehousing
Finance and insurance
Real estate and rental and leasing
Real estate
Professional, scientific, and technical services
Administrative and support and waste management and
remediation services
Health care and social assistance
Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and related industries
Other services
Personal and laundry services
All other industries

Total business
receipts

Total business
deductions

Depreciation [1]

Net income

Deficit

(1)

(2)

(3)

(4)

(5)

0.54

0.61

1.25

0.73

1.40

1.83

1.93

3.33

2.13

4.73

2.23

2.36

3.95

2.51

6.19

4.60

4.71

8.61

6.58

8.66

2.08

2.07

4.10

3.32

3.75

2.65

2.73

4.18

3.52

6.14

2.16

2.16

6.60

3.60

6.56

2.42

2.70

5.09

2.96

5.01

2.48

2.77

5.26

3.01

5.24

1.77

2.10

3.74

1.98

4.32

3.02

3.56

5.96

2.97

6.28

1.91

2.05

4.07

2.27

6.87

4.84

6.05

11.32

4.79

14.02

3.41

3.50

5.51

4.67

5.36

3.86

4.10

6.78

4.67

6.03

2.67

2.96

4.77

2.77

5.51

3.34

3.75

6.92

3.59

7.34

2.12

2.18

3.32

2.80

3.58

[1] Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.

12

80

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 Product calculations. In addition, data from amended returns and tentative
returns are not reflected in these statistics.

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income
Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing

Number of
returns

Business
receipts

(1)

(2)

22,074,953 1,278,359,791

Depreciation
deduction
[1, 2]

Rent paid
Rent paid on
on other
machinery
business
and
equipment [1] property [1]

(3)

(4)

(5)

40,644,196

9,350,344

31,229,159

Interest paid
deduction
[1, 3]

Payroll
[1, 4]

Net income
less deficit

(6)

(7)

(8)

13,511,951 108,782,628 278,032,643

274,667

15,149,638

1,483,616

125,020

192,764

250,781

1,603,037

552,595

Animal production (including breeding of cats and dogs)

40,387

1,503,592

186,761

6,840

9,448

26,972

53,989

-358,695

Forestry and logging (including forest nurseries, timber tracts)

45,817

4,927,168

472,340

53,723

58,697

92,022

574,777

330,074

Fishing

69,764

2,307,587

315,514

13,278

45,410

49,215

111,514

208,056

Hunting and trapping

8,673

324,115

40,211

* 3,165

* 15,987

12,123

* 2,721

27,879

110,025

6,087,176

468,789

48,015

63,222

70,449

860,035

345,281

Support activities for agriculture and forestry
Mining
Oil and gas extraction
Coal mining
Metal ore mining

135,021

12,553,376

691,559

38,737

56,272

189,920

471,306

2,228,432

113,181

9,722,236

539,702

13,572

31,222

144,100

195,974

1,500,370

1,161

320,222

15,905

* 2,446

* 53

* 13,587

* 41,800

11,822

* 1,013

* 713

* 440

*3

* 24

0

* 341

* -2,625

Nonmetallic mineral mining and quarrying

2,728

513,295

50,565

7,025

14,040

20,523

69,275

42,163

Support activities for mining

16,938

1,996,910

84,947

15,692

10,934

11,709

163,916

676,703

Utilities

13,962

389,979

61,131

* 7,978

* 1,955

8,340

* 13,740

10,883

2,915,823

236,421,496

7,537,599

1,571,914

1,399,443

1,943,775

28,663,453

37,593,450

Residential building construction

463,281

56,984,737

1,136,547

241,133

223,689

605,928

5,908,008

6,498,939

Nonresidential building construction

97,016

11,336,311

258,362

86,674

96,738

112,529

1,334,207

1,135,331

Heavy and civil engineering construction

68,498

9,736,691

623,286

108,344

50,734

247,233

795,831

1,259,983

2,287,028

158,363,757

5,519,403

1,135,763

1,028,282

978,086

20,625,407

28,699,197

Construction

Specialty trade contractors
Manufacturing

325,370

25,918,270

1,080,037

135,165

792,154

333,610

3,031,717

3,141,732

Food manufacturing

26,529

2,600,252

112,358

7,368

72,471

36,555

265,059

123,678

Textile and textile product mills

3,399

165,265

11,825

* 50

* 3,832

* 502

* 15,057

13,350

Apparel

23,467

1,212,652

26,377

* 3,234

65,821

8,519

163,562

120,123

Leather and allied products

4,099

208,383

* 4,160

0

* 268

* 4,001

* 8,155

18,518

Wood products

38,706

2,785,434

136,374

9,263

35,036

52,144

328,890

281,240

Paper products
Printing and related support activities
Petroleum and coal products

* 24

* 40,871

* 1,193

* 854

* 316

* 1,065

* 6,171

* 797

32,253

2,534,859

106,495

29,049

110,158

34,108

220,400

345,153

418

252,607

2,766

* 1,536

* 2,621

* 287

* 10,785

12,022

Chemical manufacturing

11,785

1,011,168

32,661

6,467

23,786

15,952

128,346

70,529

Plastics, rubber, clay, refractory, and glass products

10,900

490,960

21,197

1,438

19,166

32,346

105,368

-56,363

Nonmetallic mineral products

5,250

1,233,093

50,501

13,920

* 6,550

14,081

255,037

133,241

Primary metal industries

4,862

629,559

77,619

* 539

* 15,483

* 15,811

* 36,721

70,556

Fabricated metal products

41,607

4,422,472

168,578

24,021

154,482

41,121

671,603

674,798
445,516

Machinery

23,892

2,197,311

108,750

8,817

73,712

20,601

301,783

Computer and electronic products

8,037

214,865

4,489

* 335

5,985

* 11

14,335

44,531

Electrical equipment, appliances, and components

7,317

620,005

4,831

* 4,230

* 22,474

* 4,207

54,070

103,998

Transportation equipment

6,779

566,277

6,048

* 6,723

20,859

* 15,999

33,322

5,903

Furniture and related products

23,146

1,607,510

61,446

3,850

59,329

9,056

166,227

312,671

Medical equipment and supplies

6,346

397,594

4,731

* 2,012

20,076

* 27

* 16,758

104,620

Other miscellaneous manufacturing

46,552

2,727,134

137,639

11,459

79,732

27,216

230,068

316,852

Wholesale trade (merchant wholesalers)

378,532

48,497,837

670,765

130,060

583,668

348,849

1,562,932

4,848,637

Durable goods, including machinery, wood, metals, etc.

168,744

22,182,442

339,061

59,754

295,950

174,979

797,164

1,800,827

Nondurable goods, including food, fiber, chemicals, etc.

132,033

20,860,903

274,036

44,852

228,078

150,424

670,018

1,989,117

Wholesale electronic markets and agents and brokers

77,755

5,454,492

57,667

25,454

59,640

23,445

95,750

1,058,692

2,466,091

194,556,426

3,112,807

816,412

6,081,388

1,826,226

10,250,686

9,004,091

Motor vehicle and parts dealers

132,277

39,019,492

319,350

65,144

499,405

432,625

1,528,547

1,002,111

Furniture and home furnishing stores

48,371

5,121,661

63,496

14,997

335,490

49,989

501,265

349,902

Electronic and appliance stores

27,597

4,299,318

58,826

39,396

121,096

40,588

479,909

329,864

Building material and garden equipment and supplies dealers

46,151

9,785,421

176,941

32,268

206,989

110,491

791,010

652,868

Food and beverage stores

106,383

27,132,801

287,981

106,117

835,362

194,718

1,552,560

824,492

Health and personal care stores

164,729

9,929,055

130,189

96,578

308,432

47,646

668,444

702,245

Retail trade

Gasoline stations

21,142

24,573,469

177,668

35,057

311,050

167,540

713,264

217,528

Clothing and accessories stores

137,859

11,521,420

151,252

135,190

883,557

104,096

756,359

906,670

Sporting goods, hobby, book, and music stores

110,706

7,518,176

459,718

49,082

442,927

103,741

501,974

243,901

General merchandise stores

37,723

3,173,839

96,673

11,175

225,609

34,127

212,332

-75,179

Miscellaneous store retailers

520,556

28,225,819

550,723

132,764

1,499,101

320,152

1,835,512

2,143,487

1,112,596

24,255,956

639,990

98,645

412,368

220,514

709,511

1,706,203

Nonstore retailers
Footnotes at end of table.

81

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income
Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing

Business
receipts

(9)

(10)

(11)

16,207,401 1,086,041,069

Rent paid on
machinery
and
equipment [1]
(12)

Rent paid
on other
business
property [1]
(13)

27,346,827

7,169,152

23,867,916

Interest paid
deduction
[1, 3]

Payroll
[1, 4]

Net income

(14)

(15)

(16)

8,033,548 89,339,914 326,769,239

159,446

11,780,204

760,887

87,326

91,366

117,030

1,281,866

Animal production (including breeding of cats and dogs)

10,829

1,144,304

30,339

* 551

4,815

7,534

38,955

101,101

Forestry and logging (including forest nurseries, timber tracts)

28,272

3,975,003

297,479

42,964

27,112

38,868

398,644

553,476

2,014,259

541,099

Fishing

42,289

1,915,780

190,519

* 7,703

28,636

30,483

* 98,720

Hunting and trapping

4,753

264,579

* 21,983

* 2,949

* 14,725

* 6,634

* 1,234

58,112

Support activities for agriculture and forestry

73,302

4,480,537

220,567

33,157

16,078

33,510

744,314

760,471

Mining

100,099

9,988,365

441,929

25,925

31,113

77,599

349,363

3,267,413

Oil and gas extraction

83,341

7,442,983

328,782

8,047

20,261

46,752

108,499

2,478,768

Coal mining

1,143

295,698

* 12,146

* 1,690

* 12

* 11,490

* 38,738

15,674

0

0

0

0

0

0

0

0

Nonmetallic mineral mining and quarrying

1,615

390,565

32,167

* 5,907

* 733

10,848

51,012

65,389

Support activities for mining

14,000

1,859,119

68,834

10,282

10,107

8,509

151,114

707,582

9,251

307,085

34,270

* 6,242

* 296

* 3,329

* 12,936

81,869

2,431,039

210,267,828

6,079,471

1,279,893

1,105,193

1,399,037 25,535,792

42,280,514

Residential building construction

377,884

48,497,062

920,591

180,070

165,086

397,214

5,225,688

Nonresidential building construction

79,108

9,173,024

207,069

64,789

61,394

77,443

1,056,762

1,401,606

Heavy and civil engineering construction

51,529

8,174,288

503,342

92,160

43,251

127,469

654,217

1,647,597

1,922,517

144,423,455

4,448,470

942,874

835,462

796,911 18,599,125

31,514,116

212,967

22,223,495

716,057

110,670

589,051

206,259

2,489,281

4,234,636

Food manufacturing

16,102

2,248,542

67,670

3,939

52,626

22,434

219,708

255,772

Textile and textile product mills

* 1,312

* 123,168

* 9,042

0

0

* 128

* 7,402

* 33,544

Metal ore mining

Utilities
Construction

Specialty trade contractors
Manufacturing

7,717,196

Apparel

16,190

969,053

12,960

* 3,233

54,410

* 4,265

93,306

176,903

Leather and allied products

* 3,088

* 189,512

* 2,890

0

* 152

* 3,992

* 6,712

* 29,458

Wood products

30,191

2,343,349

79,174

7,825

23,248

31,048

247,848

421,111

Paper products

* 12

* 20,567

* 396

0

0

* 390

* 2,432

* 5,427

20,473

2,035,933

50,185

28,153

86,881

29,105

160,098

445,762

Printing and related support activities
Petroleum and coal products

365

109,511

* 2,733

* 1,536

* 2,621

* 286

* 10,759

12,995

Chemical manufacturing

8,015

858,043

15,530

6,289

20,505

10,318

114,462

131,821

Plastics, rubber, clay, refractory, and glass products

4,174

366,086

14,241

* 364

* 3,955

4,247

* 73,612

33,775

Nonmetallic mineral products

5,002

1,192,877

43,202

13,794

* 6,148

* 11,621

249,585

142,244

Primary metal industries

3,425

594,232

* 75,949

* 539

* 15,335

* 4,249

* 36,512

96,438

Fabricated metal products

29,792

4,084,573

112,129

22,757

120,385

30,502

595,749

811,992
490,326

Machinery

15,615

1,768,385

59,283

3,071

30,372

13,971

248,146

Computer and electronic products

4,463

176,905

* 1,721

* 326

* 4,334

*2

* 8,985

65,378

Electrical equipment, appliances, and components

5,914

592,629

4,246

* 2,083

* 22,424

* 3,446

* 50,669

116,576

Transportation equipment

4,188

473,236

* 3,910

* 6,687

* 8,129

* 15,091

* 20,068

68,361

Furniture and related products

15,235

1,481,995

48,380

3,838

57,016

4,442

139,878

358,960

Medical equipment and supplies

5,236

386,813

* 4,328

* 644

17,821

*7

* 13,534

112,757

Other miscellaneous manufacturing

24,171

2,208,087

108,089

5,592

62,689

16,714

189,817

425,037

Wholesale trade (merchant wholesalers)

241,291

40,485,049

457,568

85,792

418,527

204,366

1,132,176

6,222,643

98,411

18,959,959

219,735

39,954

210,449

90,472

590,119

2,522,997

Nondurable goods, including food, fiber, chemicals, etc.

88,717

16,451,781

196,131

25,491

161,294

97,750

461,446

2,512,354

Wholesale electronic markets and agents and brokers

54,163

5,073,309

41,702

20,347

46,784

16,145

80,610

1,187,292

1,229,702

152,986,902

1,620,759

517,427

4,024,711

1,023,254

7,334,010

17,539,733

Durable goods, including machinery, wood, metals, etc.

Retail trade
Motor vehicle and parts dealers

85,163

29,305,993

191,918

38,845

305,011

247,869

1,019,913

1,893,257

Furniture and home furnishing stores

28,324

3,984,039

46,368

8,079

210,108

34,442

337,874

651,938

Electronic and appliance stores

20,898

3,514,872

48,180

18,246

98,244

34,867

313,304

400,086

Building material and garden equipment and supplies dealers

29,558

8,093,137

136,124

24,274

125,222

68,612

661,195

880,641

Food and beverage stores

70,796

22,393,740

193,407

93,189

637,618

134,401

1,246,393

1,439,268

Health and personal care stores

62,055

8,966,052

84,115

76,721

222,846

33,608

584,752

1,164,303

Gasoline stations

14,093

18,618,489

104,880

23,618

235,451

99,606

510,885

411,215

Clothing and accessories stores

85,955

9,364,273

80,244

65,368

666,093

64,164

569,519

1,435,523
813,641

Sporting goods, hobby, book, and music stores

48,861

5,256,769

89,966

20,767

239,898

36,151

261,125

General merchandise stores

17,023

2,072,070

21,720

9,515

126,005

13,735

95,194

176,503

Miscellaneous store retailers

284,016

22,672,115

327,795

64,943

895,521

168,149

1,241,637

3,782,210

Nonstore retailers

482,959

18,745,354

296,042

73,861

262,694

87,650

492,219

4,491,148

Footnotes at end of table.

82

Number of
returns

Depreciation
deduction
[1, 2]

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income
Industrial sector

Number of
returns

Business
receipts

Depreciation
deduction
[1, 2]

Rent paid on
Rent paid
machinery
on other
and
business
equipment [1] property [1]
(5)

Payroll
[1, 4]

Net income
less deficit

(1)

(2)

(3)

1,083,977

76,271,968

5,267,261

Air and rail transportation

16,170

1,597,447

Water transportation

3,897

599,845

General freight trucking, local
General freight trucking, long distance and specialized freight
trucking
Urban transit

238,255
359,784
* 1,044

* 760

0

0

0

0

0

* 602

Interurban and rural bus transportation

* 2,740

* 8,573

* 1,730

* 736

0

* 11

* 203

* -14,692
1,289,685

Transportation and warehousing

(4)

Interest paid
deduction
[1, 3]
(6)

(7)

(8)

2,002,127

543,340

1,007,550

4,577,900

10,817,014

273,566

24,127

35,076

77,054

125,270

-132,522

53,049

* 1,150

9,442

12,623

45,168

225,384

20,891,122

1,622,687

466,877

122,581

256,869

1,848,681

2,861,969

37,211,507

2,680,136

893,799

187,096

491,506

1,592,730

4,315,397

Taxi and limousine service

152,300

4,878,985

160,289

489,594

79,138

74,613

136,056

School, employee, and charter bus industry

17,378

842,153

82,227

* 3,886

7,212

16,325

97,880

110,210

Other transit and ground passenger transportation

18,674

833,022

23,710

* 5,249

* 3,805

* 6,339

* 51,354

220,745

Pipeline transportation

* 668

* 165,865

* 6,319

* 3,276

* 42

* 1,151

* 570

* 28,181

Scenic and sightseeing transportation
Support activities for transportation (including motor vehicle
towing)
Couriers and messengers

7,424

258,845

73,382

* 222

12,860

10,891

31,508

-19,591

43,261

2,575,924

185,145

34,155

36,454

36,695

231,268

252,848

214,315

5,901,628

81,263

77,175

34,936

14,210

358,881

1,589,376

8,067

506,292

23,757

1,880

14,697

9,262

58,329

89,423

333,782

10,896,418

434,131

100,414

196,646

99,356

786,483

2,476,404

Publishing industries (except internet)

87,975

3,157,791

49,425

15,222

50,427

48,845

288,136

836,147

Motion picture and sound recording

88,159

2,704,713

245,941

66,660

80,769

21,201

124,482

282,252

Broadcasting (except internet) and telecommunications

52,024

2,211,356

72,985

12,154

39,170

12,786

112,159

318,274

Warehousing and storage facilities
Information

Internet publishing and broadcasting
Internet service providers, web search portals, and data processing
Finance and insurance

25,276

809,494

25,594

* 320

* 3,131

* 2,041

* 144,962

324,523

80,349

2,013,064

40,186

6,058

23,150

14,484

116,744

715,208

688,299

82,400,946

954,096

259,571

1,453,210

779,761

4,393,764

19,509,114

Credit intermediation and related activities

107,641

6,049,583

139,258

41,285

142,936

170,099

409,592

1,237,507

Securities, commodity contracts, and other financial investments

151,720

44,814,621

249,126

65,229

415,403

351,915

1,218,114

5,649,288

Investment bankers and securities dealers

6,062

2,718,609

18,010

3,009

27,296

20,893

38,817

386,027

Securities brokers

18,296

4,469,396

25,595

15,708

30,771

34,854

156,224

886,932

Commodity contracts brokers and dealers

8,437

699,537

11,830

10,074

40,908

20,751

53,358

75,522

263

1,975,048

600

* 83

* 300

9,219

* 12,275

-21,372

118,662

34,952,031

193,091

36,355

316,129

266,197

957,440

4,322,180

428,938

31,536,743

565,711

153,056

894,871

257,747

2,766,058

12,622,319

345,052

27,879,993

467,180

119,784

213,134

2,631,726

11,159,905

Securities and commodity exchanges
Other financial investment activities (investment advice)
Insurance agents, brokers, and related activities
Insurance agencies and brokerages

840,530

Other insurance related activities

83,887

3,656,750

98,531

33,272

54,341

44,613

134,332

1,462,414

Real estate and rental and leasing

1,381,330

77,157,455

3,132,288

540,240

1,297,781

1,645,385

2,261,411

27,151,639

1,318,113

73,470,771

2,046,219

474,303

1,192,205

1,446,915

1,955,923

27,065,200

37,787

1,951,530

261,362

15,817

37,398

340,902

104,651

-8,769

1,060,597

56,574,366

1,445,905

378,559

980,350

677,599

1,314,741

23,796,425

219,730

14,944,875

338,952

79,927

174,457

428,413

536,532

3,277,545

63,217

3,686,684

1,086,069

65,937

105,576

198,471

305,488

86,439

19,064

681,316

197,686

11,874

12,378

29,680

31,496

-69,987

Consumer electronics and appliances rental

* 801

* 43,930

* 7,394

* 49

* 99

* 626

* 23,994

* 7,526

Formal wear and costume rental

* 338

* 5,856

* 984

* 590

0

0

0

* 708

Video tape and disc rental

6,799

585,240

26,545

* 4,435

44,812

6,471

81,472

94,556

Real estate
Lessors of real estate (including miniwarehouses and self storage)
Offices of real estate agents, brokers, property managers,
and appraisers
Other activities related to real estate
Rental and leasing services
Automotive equipment rental and leasing

General rental centers and other consumer goods rental
Commercial and industrial machinery and equipment rental
and leasing
Professional, scientific, and technical services

15,071

654,657

91,251

1,867

6,006

15,718

40,088

69,411

21,145

1,715,686

762,208

47,122

42,281

145,976

128,437

-15,776

2,929,675

156,060,278

4,196,938

963,379

3,655,399

1,143,603

11,756,820

67,030,526

349,419

37,108,451

515,667

224,181

1,550,234

279,788

4,044,831

16,343,088

Office of certified public accountants

42,853

3,603,419

92,241

22,173

136,823

51,910

524,405

1,552,401

Other accounting services

327,538

8,881,136

244,807

74,980

283,426

117,020

979,936

3,745,547

Architectural, engineering, and related services

285,030

15,715,344

566,031

Legal services

103,677

256,667

89,227

1,824,367

5,345,255

Architectural services

105,346

7,269,495

300,441

63,200

149,794

36,763

876,499

2,097,573

Engineering services

96,441

5,448,902

170,916

30,494

64,554

33,857

566,700

2,132,176

Drafting, building inspections, and geophysical surveying

61,719

1,885,486

60,099

5,058

17,426

10,232

191,702

780,431

Surveying and mapping (except geophysical) services

11,564

840,610

23,371

4,808

16,401

6,455

161,385

281,478

Testing laboratories

9,960

270,851

11,204

* 116

* 8,493

* 1,921

* 28,082

53,598

226,092

8,776,772

297,685

42,028

205,291

45,346

302,791

2,375,698

Specialized design services
Computer systems design services
Other professional, scientific, and technical services

240,530

10,200,170

307,916

77,543

105,944

51,095

601,575

4,980,382

1,458,214

71,774,986

2,172,592

418,798

1,117,014

509,217

3,478,915

32,688,156

Footnotes at end of table.

83

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income
Industrial sector

Number of
returns

(9)
Transportation and warehousing

Business
receipts

(10)

(11)

Rent paid on
machinery
and
equipment [1]

Rent paid
on other
business
property [1]

Interest paid
deduction
[1, 3]

Payroll
[1, 4]

Net income

(12)

(13)

(14)

(15)

(16)

1,565,173

405,067

670,926

3,279,417

13,120,269

26,724

14,208

23,808

6,507

* 88,998

190,678

24,641

* 1,141

9,188

3,735

39,748

276,784

17,115,773

1,184,830

357,656

95,335

196,614

1,241,901

3,316,892

30,497,572

1,907,281

634,796

136,950

331,111

1,124,305

5,220,522

880,116

63,480,511

3,566,964

Air and rail transportation

11,566

1,141,971

Water transportation

3,827

568,482

General freight trucking, local
General freight trucking, long distance and specialized freight
trucking
Urban transit

200,101
281,871
* 1,044

* 760

0

0

0

0

0

* 602

Interurban and rural bus transportation

* 1,744

* 8,573

* 67

0

0

* 11

* 203

* 3,684

Taxi and limousine service

133,232

4,400,629

125,062

452,111

59,460

66,386

70,959

1,406,415

School, employee, and charter bus industry

11,849

611,561

40,189

* 620

* 5,094

12,106

* 66,836

171,933

** 16,919

** 899,753

** 26,485

** 8,162

** 3,370

** 7,055

** 41,410

** 257,748

Other transit and ground passenger transportation
Pipeline transportation
Scenic and sightseeing transportation
Support activities for transportation (including motor vehicle
towing)
Couriers and messengers
Warehousing and storage facilities

**

**

**

**

**

**

**

**

4,455

199,997

* 10,973

* 16

* 10,347

* 2,935

* 25,386

58,838

32,864

2,229,570

140,066

20,835

25,348

27,295

191,534

348,278

174,648

5,426,188

67,842

75,186

32,591

12,073

348,642

1,758,282

5,996

379,683

12,805

* 441

* 3,576

5,098

39,496

109,613

231,274

9,460,500

198,693

54,777

140,636

45,476

602,367

3,521,752

Publishing industries (except internet)

65,656

2,752,712

31,146

11,776

38,079

28,521

182,534

1,036,320

Motion picture and sound recording

55,074

2,077,869

95,396

32,937

55,235

8,927

91,771

761,703

Broadcasting (except internet) and telecommunications

31,621

1,900,491

21,505

4,514

24,635

* 3,512

75,059

527,405

Information

Internet publishing and broadcasting
Internet service providers, web search portals, and data processing
Finance and insurance

14,482

800,313

23,873

*3

* 2,025

* 1,398

* 138,931

374,723

64,441

1,929,116

26,772

5,547

20,663

3,118

114,071

821,601

487,018

54,189,929

732,242

218,753

1,274,260

407,864

3,696,613

21,925,487

Credit intermediation and related activities

75,719

5,151,357

76,633

24,823

105,873

86,330

280,259

1,600,212

Securities, commodity contracts, and other financial investments

87,963

20,192,245

165,134

53,194

344,671

109,697

953,688

6,868,918

Investment bankers and securities dealers

4,555

1,556,493

13,439

* 2,758

24,728

6,338

25,921

444,869

Securities brokers

14,341

3,093,538

18,466

14,705

28,767

13,653

141,639

975,321

Commodity contracts brokers and dealers

4,938

464,545

6,387

* 9,087

36,240

1,191

43,890

210,956

Securities and commodity exchanges
Other financial investment activities (investment advice)
Insurance agents, brokers, and related activities

* 18

* 366,568

* 158

* 56

* 98

* 173

* 1,221

* 5,264

64,112

14,711,101

126,683

26,588

254,838

88,342

741,016

5,232,508

323,336

28,846,327

490,476

140,735

823,717

211,837

2,462,665

13,456,357

Insurance agencies and brokerages

259,887

25,671,759

408,324

111,892

778,351

173,834

2,350,913

11,831,530

Other insurance related activities

63,449

3,174,568

82,152

28,843

45,365

38,003

111,752

1,624,826

Real estate and rental and leasing

947,938

67,119,922

1,731,446

414,786

950,662

623,965

1,524,430

31,715,764

910,365

64,600,647

1,352,086

391,008

898,104

540,810

1,297,458

31,080,884

16,242

1,245,651

58,893

6,641

23,952

63,491

53,382

446,214

751,116

51,607,984

1,097,972

315,272

750,565

319,362

976,428

26,136,439

143,007

11,747,011

195,221

69,095

123,586

157,958

267,648

4,498,230

37,572

2,519,275

379,360

23,778

52,558

83,155

226,972

634,881

10,355

375,670

64,339

* 9,259

* 936

17,721

* 18,797

72,503

* 790

* 43,890

* 7,322

* 49

0

* 626

* 23,954

* 7,780

Real estate
Lessors of real estate (including miniwarehouses and self storage)
Offices of real estate agents, brokers, property managers,
and appraisers
Other activities related to real estate
Rental and leasing services
Automotive equipment rental and leasing
Consumer electronics and appliances rental
Formal wear and costume rental

* 299

* 5,807

* 924

* 590

0

0

0

* 720

Video tape and disc rental

5,180

493,472

* 18,041

* 4,397

* 34,714

* 2,588

* 58,424

102,757
122,816

General rental centers and other consumer goods rental
Commercial and industrial machinery and equipment rental
and leasing
Professional, scientific, and technical services

10,320

585,218

30,627

* 1,666

* 3,447

7,099

* 34,430

10,628

1,015,217

258,107

7,816

13,462

55,121

91,367

328,305

2,190,984

144,948,840

3,108,974

802,445

3,066,320

814,053 10,141,602

72,112,319

Legal services

279,851

35,427,000

447,215

193,727

1,404,983

224,473

3,654,032

16,882,598

Office of certified public accountants

34,404

3,498,330

77,848

18,811

128,571

43,496

507,459

1,607,069

Other accounting services

264,348

8,377,202

186,836

70,397

228,824

85,490

920,214

3,997,529

Architectural, engineering, and related services

212,396

14,211,901

443,078

60,376

1,551,634

5,826,663

71,312

213,925

Architectural services

75,327

6,692,080

247,106

55,024

122,913

32,294

756,786

2,295,538

Engineering services

74,797

4,785,256

124,925

12,163

57,287

13,468

444,665

2,292,747

Drafting, building inspections, and geophysical surveying

46,223

1,766,872

43,042

* 1,207

16,880

9,393

167,257

859,053

Surveying and mapping (except geophysical) services

8,940

752,305

20,925

* 2,887

14,990

4,259

160,120

293,728

Testing laboratories

7,110

215,388

* 7,079

* 30

* 1,856

* 962

* 22,807

85,597

148,076

7,994,338

212,760

29,842

136,377

27,151

287,098

2,761,358

Specialized design services
Computer systems design services
Other professional, scientific, and technical services
Footnotes at end of table.

84

Depreciation
deduction
[1, 2]

182,664

9,474,515

186,046

68,743

94,655

23,545

460,110

5,300,473

1,069,245

65,965,554

1,555,190

349,613

858,986

349,523

2,761,057

35,736,629

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with and without net income

Industrial sector

Number of
returns

(1)

Business
receipts

Depreciation
deduction
[1, 2]

(2)

(3)

799,528

40,337,777

1,045,189

Scientific research and development services

34,582

1,324,796

Advertising and related services

123,065

6,895,856

Management, scientific, and technical consulting services

Market research and public opinion polling
Other miscellaneous services
Administrative and support and waste management and
remediation services
Administrative and support services
Waste management and remediation services

Rent paid on Rent paid
on other
machinery
business
and
equipment [1] property [1]

Interest paid
deduction
[1, 3]

Payroll
[1, 4]

Net income
less deficit

(4)

(5)

(6)

(7)

(8)

200,963

505,447

269,107

1,215,589

22,085,494

46,188

6,924

20,354

12,455

118,516

648,957

164,073

34,650

95,630

32,116

207,721

1,956,461

45,285

1,877,702

23,624

18,452

37,846

15,057

91,420

594,518

455,755

21,338,856

893,517

157,809

457,738

180,481

1,845,669

7,402,726

2,140,672

57,226,846

2,427,711

478,905

620,978

409,575

6,399,215

16,214,830

2,117,987

54,956,120

2,186,122

458,683

606,056

369,221

6,204,320

15,927,115

22,685

2,270,726

241,589

20,223

14,923

40,354

194,894

287,715

607,402

8,870,058

367,262

82,081

467,640

58,598

450,578

2,853,853

Health care and social assistance

1,873,520

110,437,177

2,552,593

595,116

4,666,161

1,100,056 15,737,080

44,502,812

Ambulatory health care services

913,825

91,368,332

1,934,995

485,291

4,088,503

735,041 13,457,928

38,361,919

Offices of physicians (except mental health specialists)

185,771

31,770,442

525,709

186,538

1,238,581

164,991

15,121,140

Offices of physicians, mental health specialists

32,269

3,274,443

51,738

17,348

151,001

13,962

214,194

1,855,833

Offices of dentists

87,600

29,384,751

800,493

111,328

1,117,438

328,515

6,347,805

10,611,688

Offices of chiropractors

43,782

4,561,513

127,778

31,916

426,136

72,525

547,433

1,569,890

Offices of optometrists

20,136

3,415,924

90,906

21,768

178,035

28,794

580,790

916,620

Offices of mental health practitioners and social therapists

159,338

7,810,047

125,047

46,897

525,502

37,270

553,580

4,148,568

Educational services

Offices of podiatrists

3,971,824

6,066

883,229

10,566

4,631

84,560

7,084

106,447

324,056

126,781

3,913,772

67,141

24,029

204,494

20,804

241,751

1,705,147

Medical and diagnostic laboratories

27,697

1,488,692

57,471

15,319

54,577

17,454

263,561

470,755

Home health care services
Other ambulatory health care services (including ambulance
services, blood and organ banks)

200,236

4,010,748

60,579

22,991

91,130

34,133

566,734

1,378,234

Outpatient care centers and other miscellaneous health practitioners

24,149

854,773

17,569

2,526

17,049

9,509

63,810

259,988

9,680

692,556

10,959

* 634

28,826

* 9,196

* 136,150

307,614

Nursing and residential care facilities

77,643

4,199,699

170,152

25,157

144,363

232,910

1,075,795

517,535

Social assistance

157,053

3,231,968

71,699

23,404

183,287

11,059

257,185

1,335,983

Hospitals

Child day care services
Arts, entertainment, and recreation
Performing arts, spectator sports, and related industries

715,320

10,944,621

364,789

60,630

221,182

111,850

810,021

3,979,762

1,238,273

30,006,027

1,529,868

236,184

977,770

305,762

1,520,002

7,118,042
5,993,583

1,039,525

21,662,248

1,130,192

159,499

535,992

143,542

849,988

Museums, historical sites, and similar institutions

2,150

45,090

* 1,626

* 40

* 494

* 833

* 1,246

27,693

Amusement, gambling, and recreation industries

196,597

8,298,690

398,050

76,645

441,284

161,387

668,768

1,096,766

390,488

45,255,787

1,823,805

324,912

2,954,930

1,058,030

7,675,745

1,648,246

60,878

5,680,723

564,923

28,544

106,663

544,840

918,107

143,241

Accommodation, food services, and drinking places
Accommodation
Travel accommodation (including hotels, motels, and bed and
breakfast inns)

32,100

3,944,827

400,584

22,350

74,693

411,303

736,220

115,743

RV (recreational vehicle) parks and recreational camps

16,273

617,782

85,313

646

* 5,164

47,482

34,660

35,021

Rooming and boarding houses

12,505

1,118,114

79,027

5,547

26,806

86,055

147,227

-7,522

Food services and drinking places

329,610

39,575,064

1,258,882

296,368

2,848,268

513,190

6,757,638

1,505,005
18,023,952

Other services

2,281,767

81,837,548

3,060,927

865,982

5,202,158

947,140

7,409,260

370,285

25,056,465

1,162,024

228,442

947,232

419,437

2,679,298

2,743,445

Automotive mechanical and electrical repair and maintenance

186,077

12,693,685

583,826

65,719

425,196

219,441

1,189,455

1,351,785

Automotive body shops
Other auto repair and maintenance (including oil change,
lubrication, and car washes)

105,438

8,039,127

329,034

74,894

314,861

87,525

1,043,367

933,804

Auto repair and maintenance

Miscellaneous repairs
Personal and laundry services
Religious, grantmaking, civic, professional and similar
organizations
Unclassified establishments
Footnotes at end of table.

78,771

4,323,653

249,164

87,829

207,175

112,471

446,476

457,856

510,049

18,612,207

643,062

160,127

338,877

187,175

1,549,713

3,934,763

1,401,432

38,168,877

1,255,842

477,413

3,916,049

340,528

3,180,249

11,345,744

261,919

3,783,951

94,220

31,556

31,718

5,683

118,378

1,744,269

354,383

4,668,310

165,584

44,591

53,784

49,952

99,124

1,562,123

85

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2006—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

Number of
returns

Business
receipts

Depreciation
deduction
[1, 2]

Rent paid on
machinery
and
equipment [1]

Rent paid
on other
business
property [1]

Interest paid
deduction
[1, 3]

(11)

(12)

(13)

758,574

156,606

333,406

Payroll
[1, 4]

Net income

(14)

(15)

(16)

165,771

792,819 23,929,107

(9)

(10)

Management, scientific, and technical consulting services

592,494

36,790,508

Scientific research and development services

25,755

1,181,067

34,134

6,872

10,943

11,453

52,929

711,249

Advertising and related services

95,363

6,493,980

111,387

32,188

83,094

21,697

173,165

2,160,997

Market research and public opinion polling
Other miscellaneous services
Administrative and support and waste management and
remediation services
Administrative and support services
Waste management and remediation services

31,700

1,829,934

16,502

15,037

34,177

* 7,405

90,252

673,430

323,934

19,670,065

634,594

138,910

397,366

143,197

1,651,893

8,261,845

1,745,131

50,687,235

1,766,937

319,216

439,267

259,541

5,231,458 18,548,626

1,729,754

48,719,132

1,554,592

303,044

426,482

223,220

5,070,824 18,241,969

15,377

1,968,102

212,345

16,172

12,786

36,321

160,634

306,657

482,200

7,748,425

179,092

48,201

349,928

30,225

343,407

3,551,313

Health care and social assistance

1,566,487

103,316,476

2,086,750

520,756

4,110,399

Ambulatory health care services

755,697

87,601,145

1,700,777

441,586

3,732,119

614,434 12,654,705 39,590,601

Offices of physicians (except mental health specialists)

155,277

30,570,191

457,681

165,272

1,157,047

133,801

Offices of physicians, mental health specialists

26,373

3,184,394

47,080

17,262

148,600

12,299

Offices of dentists

79,849

28,853,005

748,713

109,545

1,071,927

303,362

Offices of chiropractors

36,575

4,293,796

106,564

30,713

376,711

40,753

514,017

Offices of optometrists

16,729

3,241,021

77,742

20,573

161,282

24,414

532,119

956,905

Offices of mental health practitioners and social therapists

129,019

7,563,564

111,775

44,854

480,009

36,357

529,779

4,291,555

Educational services

814,628 14,091,772 46,515,681
3,733,809 15,464,963
195,333

1,884,883

6,185,481 10,708,678
1,637,889

Offices of podiatrists

4,533

872,394

9,929

* 4,552

80,032

7,005

106,447

329,304

Outpatient care centers and other miscellaneous health practitioners

96,108

3,589,855

50,133

19,289

164,017

11,458

195,965

1,892,992

Medical and diagnostic laboratories

25,126

1,361,715

42,971

8,314

48,682

12,857

218,165

502,973

Home health care services
Other ambulatory health care services (including ambulance
services, blood and organ banks)

167,084

3,307,556

35,843

19,635

29,514

22,860

385,371

1,634,796
285,663

19,027

763,654

12,345

* 1,577

14,298

9,267

58,220

Hospitals

8,358

533,143

8,308

* 557

* 7,103

* 2,937

* 49,690

317,078

Nursing and residential care facilities

58,460

2,801,230

82,079

15,006

86,407

122,768

608,163

694,165

Social assistance

129,118

2,936,614

61,692

19,625

150,241

* 8,504

221,783

1,443,366

Child day care services

614,853

9,444,345

233,894

43,981

134,529

65,985

557,429

4,470,472

Arts, entertainment, and recreation

783,925

24,129,585

693,508

157,834

599,236

124,984

811,264 10,678,744

Performing arts, spectator sports, and related industries

642,812

18,120,543

513,773

104,519

321,000

68,335

472,043

Museums, historical sites, and similar institutions

* 2,100

* 42,107

* 1,436

0

0

* 668

0

* 29,878

Amusement, gambling, and recreation industries

139,012

5,966,936

178,299

53,315

278,236

55,980

339,220

1,875,301

239,858

34,511,801

916,699

208,554

2,069,239

555,410

5,455,884

4,020,679

30,289

3,677,395

241,273

14,929

71,562

281,776

405,764

692,046
460,365

Accommodation, food services, and drinking places
Accommodation
Travel accommodation (including hotels, motels, and bed and
breakfast inns)

8,773,565

15,924

2,429,027

181,239

10,635

49,308

229,181

279,395

RV (recreational vehicle) parks and recreational camps

9,263

424,192

33,439

* 552

* 3,451

19,750

19,548

81,005

Rooming and boarding houses

5,101

824,176

26,595

* 3,742

* 18,803

32,845

106,821

150,677

209,569

30,834,405

675,426

193,625

1,997,676

273,634

5,050,120

3,328,633

1,797,001

71,166,134

2,100,302

685,978

4,140,279

626,764

5,835,139 21,179,950

Food services and drinking places
Other services
Auto repair and maintenance

274,085

21,012,115

795,106

190,324

731,747

276,965

2,064,960

3,749,425

Automotive mechanical and electrical repair and maintenance

138,480

10,736,326

417,632

43,756

305,723

152,464

996,467

1,829,655

Automotive body shops
Other auto repair and maintenance (including oil change,
lubrication, and car washes)

79,821

6,540,185

243,257

67,565

243,679

58,558

706,751

1,225,223

Miscellaneous repairs
Personal and laundry services
Religious, grantmaking, civic, professional and similar
organizations

55,785

3,735,605

134,216

79,003

182,346

65,942

361,742

694,546

397,073

16,565,122

488,964

126,525

228,160

127,635

1,342,197

4,472,783

1,125,843

33,588,896

816,233

369,129

3,180,371

222,165

2,427,981 12,957,743

202,989

3,571,180

44,586

28,291

21,864

* 3,460

118,287

2,010,227

Unclassified establishments
268,689
3,671,602
109,694
31,114
40,503
25,377
72,853
2,227,360
* Estimate should be used with caution because of the small number of sample returns on which it is based.
** Data combined to prevent disclosure of taxpayer information.
[1] Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
[2] Includes depreciation claimed on Form 8829, Expenses for Business Use of Your Home.
[3] Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.
[4] Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.
NOTE: Detail may not add to totals because of rounding.

86

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2006
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing

Net income status, item

All
nonfarm
industries

(1)

Mining

Total

Animal
production
(including
breeding of
cats and dogs)

Forestry and
logging
(including
forest
nurseries,
timber tracts)

Fishing

Hunting and
trapping

Support
activities for
agriculture and
forestry

Total

(2)

(3)

(4)

(5)

(6)

(7)

(8)

40,387
1,503,592
1,407,345
96,247
1,893,162
758,264
84,653
* 26,143
657,683
18,939
66,981
96,135
17,079
104,553
10,770
9,698
* 78
185,788
1,216
39,392
14,079
5,345
18,913
8,058
8,477
* 6,523
6,840
9,448
40,693
52,841
27,846
12,532
15,474
27,362
504,857
5,757
* 973
0
* 1,705
-358,695
101,101
-459,796

45,817
4,927,168
4,731,024
196,144
4,597,434
1,492,556
121,164
192,422
796,413
78,859
455,657
151,958
12,737
259,347
53,625
226,607
* 1,287
471,948
7,303
146,260
26,789
9,023
12,324
79,698
13,350
2,251
53,723
58,697
252,896
94,028
382,355
72,889
15,257
49,682
786,810
3,609
* 392
0
* 366
330,074
553,476
-223,402

69,764
2,307,587
2,291,942
15,645
2,099,532
430,069
* 20,827
* 99,645
239,402
58,772
41,591
* 30,168
21,573
111,935
7,374
119,281
0
314,637
* 116
50,334
16,258
18,287
15,120
34,095
9,633
0
13,278
45,410
129,728
158,112
11,869
33,365
29,134
26,112
478,822
* 12,573
* 877
0
0
208,056
541,099
-333,043

8,673
324,115
312,613
11,503
296,732
64,920
* 15,652
0
* 36,043
* 743
* 23,229
* 10,747
2,595
16,421
* 253
2,049
0
40,125
*9
5,311
1,724
3,343
8,589
3,534
1,679
0
* 3,165
* 15,987
11,937
22,761
* 2,721
6,330
3,818
9,526
68,371
* 71
* 86
0
* 86
27,879
58,112
-30,233

110,025
6,087,176
5,910,209
176,967
5,748,485
1,865,217
107,401
78,134
1,728,993
21,726
50,373
121,410
54,645
329,931
31,646
282,282
*1
466,703
9,618
138,878
39,989
15,352
25,674
44,776
24,449
* 2,605
48,015
63,222
170,645
170,746
781,902
124,162
34,158
77,983
895,791
29,691
2,086
* 943
* 2,105
345,281
760,471
-415,190

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

22,074,953
1,278,359,791
1,258,697,676
19,662,115
1,001,097,557
409,660,968
41,101,650
31,743,915
259,992,655
59,699,442
61,626,532
44,503,226
15,274,111
75,402,429
15,634,322
34,577,865
1,058,351
39,004,511
2,867,672
19,083,862
10,092,910
7,306,309
6,297,485
7,214,467
13,024,662
1,276,851
9,350,344
31,229,159
15,726,040
32,136,896
77,038,713
17,660,030
11,861,197
23,842,787
110,762,743
10,119,539
1,639,685
256,377
1,104,694
278,032,643
326,769,239
-48,736,596

274,667
15,149,638
14,653,133
496,506
14,635,344
4,611,024
349,698
396,343
3,458,534
179,038
637,829
410,418
108,629
822,187
103,668
639,916
1,365
1,479,201
18,262
380,176
98,840
51,350
80,620
170,161
57,588
11,379
125,020
192,764
605,899
498,488
1,206,693
249,277
97,842
190,664
2,734,651
51,700
4,414
* 943
4,262
552,595
2,014,259
-1,461,664

135,021
12,553,376
12,026,503
526,872
10,332,053
2,154,825
189,231
43,305
645,501
105,497
1,317,402
146,112
20,054
345,099
13,151
128,156
966,241
690,324
16,290
117,198
101,608
23,640
40,118
149,803
48,302
6,342
38,737
56,272
206,620
109,915
428,000
346,016
48,679
92,343
4,151,539
12,813
1,235
0
661
2,228,432
3,267,413
-1,038,981

87

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Agriculture, forestry, hunting, and fishing

Net income status, item

BUSINESSES WITH NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income [1,2]
Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income
Footnotes at end of table.

88

All
nonfarm
industries

(1)

Mining

Total

Animal
production
(including
breeding of
cats and dogs)

Forestry and
logging
(including
forest
nurseries,
timber tracts)

Fishing

Hunting and
trapping

Support
activities for
agriculture and
forestry

Total

(2)

(3)

(4)

(5)

(6)

(7)

(8)

16,207,401
1,086,041,069
1,069,801,403
16,239,666
759,338,643
316,416,573
25,783,017
27,022,089
197,200,540

159,446
11,780,204
11,429,992
350,211
9,765,748
3,819,222
155,132
354,707
2,850,532

10,829
1,144,304
1,082,675
61,629
1,043,006
714,585
34,852
* 24,604
625,969

28,272
3,975,003
3,806,650
168,353
3,421,526
1,331,600
53,972
161,380
729,958

42,289
1,915,780
1,907,741
8,040
1,374,681
330,075
* 19,964
* 97,539
* 181,960

4,753
264,579
262,226
* 2,353
206,467
* 48,059
* 8,127
0
* 22,854

73,302
4,480,537
4,370,700
109,837
3,720,066
1,394,902
38,217
* 71,184
1,289,791

100,099
9,988,365
9,599,325
389,040
6,721,381
1,507,686
118,110
30,280
562,184

49,294,918
45,152,683
28,036,673
11,585,567
57,138,534
12,154,895
28,470,494
793,674
26,458,059
2,353,554
15,209,038
7,247,028
5,721,647
3,614,061
4,419,487
10,264,521
1,179,701
7,169,152
23,867,916
11,600,522
24,151,060
62,317,825
13,673,058
8,896,088
17,822,266
75,456,088
7,822,259
888,769
217,525
148,765
326,769,239

119,516
522,101
182,766
34,035
503,870
81,767
388,421
* 206
759,433
10,636
245,140
51,005
36,830
32,469
84,561
34,659
4,584
87,326
91,366
369,709
308,026
927,160
181,320
47,280
113,654
1,477,092
33,022
1,454
* 943
*1
2,014,259

* 12,038
59,690
42,567
7,539
44,049
* 5,305
* 1,741
0
30,165
* 407
15,989
4,669
2,485
5,394
* 2,140
5,223
* 39
* 551
4,815
9,608
19,793
* 14,352
* 4,783
3,817
10,135
131,613
* 2,535
* 174
0
0
101,101

34,441
418,325
66,476
5,967
162,188
* 53,542
163,306
* 206
297,193
6,319
99,729
19,258
7,979
5,211
33,657
8,833
2,227
42,964
27,112
166,148
71,524
237,263
51,245
11,467
36,141
565,920
2,144
* 286
0
0
553,476

* 52,830
* 7,115
* 29,333
* 9,369
72,252
* 6,893
91,564
0
189,642
* 57
22,342
5,735
16,593
* 5,728
24,754
2,830
0
* 7,703
28,636
77,457
72,468
* 1,181
* 23,081
12,786
16,468
335,314
* 10,487
* 877
0
0
541,099

* 459
* 20,460
* 3,840
* 539
* 5,139
0
* 585
0
* 21,983
0
* 3,122
* 861
* 1,048
* 5,528
* 1,106
* 771
0
* 2,949
* 14,725
7,134
17,728
* 1,234
* 3,718
* 124
5,086
63,532
0
0
0
0
58,112

19,748
16,511
40,550
10,620
220,242
16,026
131,227
0
220,450
3,853
103,957
20,481
8,724
10,608
22,903
17,002
* 2,318
33,157
16,078
109,361
126,513
673,130
98,493
19,085
45,824
380,714
17,855
* 118
* 943
*1
760,471

89,927
774,349
67,164
15,680
307,539
7,916
95,135
728,720
441,251
12,949
95,728
59,064
19,759
20,533
57,066
35,026
2,944
25,925
31,113
151,715
93,992
319,082
251,370
34,836
69,546
2,305,730
11,105
678
0
* 110
3,267,413

4,027,039
28,303,359
3,593,336

39,412
219,553
47,979

* 1,627
* 2,289
* 1,280

5,743
42,418
12,382

6,523
40,374
12,418

* 1,268
* 14,808
* 1,494

24,251
119,665
20,406

21,763
131,772
19,970

24,710,023

171,574

* 1,008

30,036

27,956

* 13,314

99,259

111,802

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Mining—continued

Net income status, item

Utilities

Construction

Oil
and
gas
extraction

Coal
mining

Metal
ore
mining

Nonmetallic
mineral mining
and quarrying

Support
activities for
mining

Total

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

113,181
9,722,236
9,215,649
506,587
8,228,561
1,529,225
77,397
17,100
268,912
44,498
1,220,049
98,731
12,450
142,107
8,853
83,623
951,442
538,666
7,264
54,682
86,710
12,969
26,914
117,187
36,826
4,988
13,572
31,222
125,932
41,002
178,874
295,802
31,917
60,283
3,812,182
11,526
1,036
0
661
1,500,370
2,478,768
-978,398

1,161
320,222
316,057
* 4,164
308,400
* 5,968
* 98
0
* 5,876
0
* 75
* 82
* 80
* 34,374
*7
* 216
* 1,521
15,905
* 3,764
7,864
873
*3
* 105
* 13,483
* 289
*7
* 2,446
* 53
* 24,367
* 13,606
* 41,800
7,229
* 39
1,906
132,496
0
0
0
0
11,822
15,674
* -3,853

2,728
513,295
511,135
2,159
471,132
150,425
32,371
13,334
64,474
* 17,181
53,198
30,132
2,527
14,746
* 171
3,951
8,825
50,562
* 1,479
12,289
3,280
305
* 9,565
10,958
2,801
* 679
7,025
14,040
26,553
14,678
55,942
11,853
1,393
10,737
56,316
* 30
*2
0
0
42,163
65,389
-23,226

16,938
1,996,910
1,983,064
13,846
1,320,622
468,753
* 79,364
* 12,872
306,239
43,819
43,626
* 17,167
4,997
153,379
* 4,119
40,365
4,453
84,750
3,781
42,304
10,729
10,360
* 3,534
8,175
8,364
* 668
15,692
10,934
29,765
40,608
151,044
30,913
15,296
19,403
149,354
* 1,258
* 197
0
0
676,703
707,582
-30,880

13,962
389,979
386,078
3,901
379,078
* 70,163
* 1,802
* 4,611
* 16,185
* 663
* 47,882
* 980
5,186
76,569
* 650
* 44,788
* 2,534
60,775
* 33
4,979
850
* 1,197
* 4,860
* 3,480
3,517
* 24
* 7,978
* 1,955
4,178
5,567
* 9,129
4,021
11,445
10,625
36,789
* 961
* 356
0
* 258
10,883
81,869
-70,986

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

* 1,013
* 713
* 597
* 116
* 3,338
* 454
0
0
0
0
* 454
0
0
* 494
0
0
0
* 440
*1
* 61
* 16
*2
0
0
* 22
0
*3
* 24
*2
* 21
* 341
* 220
* 34
* 15
* 1,190
0
0
0
0
* -2,625
0
* -2,625

2,915,823
236,421,496
234,778,955
1,642,541
199,049,275
102,098,638
6,785,440
17,307,951
32,996,275
34,629,523
18,764,204
8,384,754
1,198,707
14,736,623
910,953
14,919,302
11,151
7,397,451
374,839
4,447,322
957,105
663,898
831,844
1,111,931
1,110,688
84,762
1,571,914
1,399,443
2,158,725
9,157,365
11,355,502
2,420,149
917,546
2,564,746
14,969,386
1,172,520
140,147
44,469
75,943
37,593,450
42,280,514
-4,687,064

89

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Mining—continued

Net income status, item

BUSINESSES WITH NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income [1,2]
Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income
Footnotes at end of table.

90

Utilities

Construction

Oil
and
gas
extraction

Coal
mining

Metal
ore
mining

Nonmetallic
mineral mining
and quarrying

Support
activities for
mining

Total

Total

(9)

(10)

(11)

(12)

(13)

(14)

(15)

83,341
7,442,983
7,071,428
371,555
4,964,644
1,012,086
21,430
13,814
249,581

1,143
295,698
291,542
* 4,156
* 280,024
* 4,936
0
0
* 4,936

0
0
0
0
0
0
0
0
0

1,615
390,565
388,840
* 1,726
325,177
101,875
* 17,316
* 3,595
* 46,263

14,000
1,859,119
1,847,515
11,603
1,151,536
388,789
* 79,364
* 12,872
261,404

9,251
307,085
304,213
* 2,873
225,185
* 36,516
* 1,355
* 4,611
* 16,185

2,431,039
210,267,828
208,846,358
1,421,470
167,993,243
87,952,882
4,657,160
16,036,080
27,296,626

40,106
722,286
35,130
10,668
119,385
4,205
62,318
715,372
328,303
4,102
40,825
47,454
10,128
11,455
35,297
25,941
1,593
8,047
20,261
82,834
31,934
94,685
208,202
19,267
40,381
2,007,735
9,817
479
0
* 110
2,478,768

0
0
0
* 13
* 34,311
*7
* 15
* 574
* 12,146
* 3,764
* 7,303
* 696
*1
0
* 11,490
* 41
*4
* 1,690
* 12
* 21,275
* 13,408
* 38,738
* 5,754
* 23
* 1,742
* 122,083
0
0
0
0
15,674

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

* 6,003
44,935
* 16,237
1,188
* 13,592
0
* 3,911
* 8,619
32,165
* 1,302
8,240
1,860
* 94
* 6,329
* 4,519
1,276
* 679
* 5,907
* 733
18,027
10,198
47,418
7,828
* 1,051
9,187
39,148
* 30
*2
0
0
65,389

43,819
7,128
* 15,798
3,811
140,251
* 3,704
28,890
4,156
68,637
3,781
39,360
9,053
9,536
* 2,749
5,761
7,768
* 668
10,282
10,107
29,578
38,452
138,242
29,585
14,496
18,235
136,765
* 1,258
* 197
0
0
707,582

* 663
* 14,235
* 533
* 63
* 46,178
* 109
* 44,782
* 369
* 34,172
* 33
* 1,986
* 231
* 19
* 2,823
* 506
237
* 15
* 6,242
* 296
4,018
* 4,031
* 8,325
* 2,568
* 5,472
9,837
8,675
* 856
* 98
0
0
81,869

29,952,105
15,464,599
5,453,687
929,375
12,332,422
839,552
12,899,721
5,720
5,971,344
297,851
3,735,662
741,762
533,853
578,214
820,823
899,300
67,610
1,279,893
1,105,193
1,731,678
7,367,953
9,499,712
1,980,924
748,493
2,103,577
12,079,977
984,680
108,127
31,992
23,198
42,280,514

18,070
63,978
12,345

0
0
0

0
0
0

* 299
* 33,212
0

* 3,394
* 34,581
* 7,624

5,485
22,774
6,826

490,220
3,989,569
506,764

51,633

0

0

* 33,212

* 26,957

15,948

3,482,805

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Construction—continued

Net income status, item

Manufacturing

Residential
building
construction

Nonresidential
building
construction

Heavy and civil
engineering
construction

Specialty trade
contractors

Total

Food
manufacturing

Textile and
textile product
mills

(16)

(17)

(18)

(19)

(20)

(21)

(22)

463,281
56,984,737
56,592,330
392,408
50,490,365
32,925,604
4,284,399
4,170,344
10,275,454
10,447,112
8,863,411
5,115,116
187,494
2,156,968
337,660
3,080,008
* 35
1,112,956
45,155
768,282
215,312
103,762
286,860
319,068
234,050
13,446
241,133
223,689
271,414
1,741,403
1,737,663
431,562
128,052
428,707
3,205,509
215,155
23,591
* 1,026
12,002
6,498,939
7,717,196
-1,218,256

97,016
11,336,311
11,310,241
26,070
10,213,727
6,347,598
145,332
779,626
2,184,272
1,548,556
1,883,240
193,428
39,586
500,523
28,310
583,050
* 3,059
253,918
15,057
212,126
57,035
43,996
35,754
76,775
41,811
2,835
86,674
96,738
87,209
213,374
554,581
112,594
64,305
106,843
599,355
22,805
4,445
0
* 3,144
1,135,331
1,401,606
-266,275

68,498
9,736,691
9,636,787
99,903
8,472,066
4,601,244
1,244,487
406,463
2,282,465
1,019,598
1,210,570
1,562,339
50,439
311,059
58,522
190,548
5,697
620,934
16,423
198,088
78,075
18,938
139,651
107,582
37,862
4,143
108,344
50,734
257,305
116,063
389,369
134,317
51,187
88,645
808,748
18,606
2,352
*3
859
1,259,983
1,647,597
-387,614

325,370
25,918,270
25,560,142
358,128
22,778,362
11,925,458
1,291,120
1,026,122
6,784,574
2,568,671
1,726,770
1,471,798
240,597
858,841
129,234
509,484
325
1,059,010
92,853
363,426
163,827
73,490
158,807
174,803
212,411
13,200
135,165
792,154
308,345
832,076
2,005,595
421,792
163,782
559,138
1,377,246
178,510
21,027
* 14,369
13,891
3,141,732
4,234,636
-1,092,904

26,529
2,600,252
2,560,770
39,483
2,475,611
1,470,197
214,375
39,574
1,151,101
204,804
124,329
263,985
32,169
48,665
15,601
15,402
* 89
111,527
8,430
30,601
17,480
4,429
23,328
13,227
12,739
490
7,368
72,471
45,815
38,932
225,485
74,751
11,980
72,321
113,312
* 3,801
* 830
* 33
* 554
123,678
255,772
-132,094

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

2,287,028
158,363,757
157,239,598
1,124,160
129,873,117
58,224,193
1,111,221
11,951,518
18,254,084
21,614,256
6,806,984
1,513,870
921,187
11,768,074
486,461
11,065,696
2,361
5,409,644
298,204
3,268,826
606,682
497,201
369,579
608,506
796,965
64,338
1,135,763
1,028,282
1,542,797
7,086,526
8,673,889
1,741,676
674,002
1,940,552
10,355,774
915,955
109,759
43,440
59,939
28,699,197
31,514,116
-2,814,919

3,399
165,265
164,915
* 350
151,915
99,607
* 29,017
* 10,630
* 34,169
* 37,957
* 18,181
* 30,347
* 3,006
* 4,947
* 101
* 3,934
0
11,091
0
* 761
* 551
* 979
* 111
* 391
* 311
0
* 50
* 3,832
* 318
1,187
* 4,426
* 2,429
* 1,075
2,700
7,377
* 2,730
* 733
0
0
13,350
* 33,544
-20,194

91

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Construction—continued

Net income status, item

Manufacturing

Residential
building
construction

Nonresidential
building
construction

Heavy and civil
engineering
construction

Specialty trade
contractors

Total

Food
manufacturing

Textile and
textile product
mills

(16)

(17)

(18)

(19)

(20)

(21)

(22)

377,884
48,497,062
48,139,109
357,953
40,779,866
27,164,392
3,029,627
3,858,077
7,613,790
8,821,474
7,182,476
3,341,052
140,119
1,727,161
313,695
2,407,726
*3
903,970
33,808
629,440
163,378
83,820
179,987
217,227
176,446
11,646
180,070
165,086
216,684
1,284,038
1,367,611
320,393
96,254
336,133
2,424,644
157,407
16,621
* 401
* 670
7,717,196

79,108
9,173,024
9,154,629
18,395
7,771,418
4,929,114
99,577
662,531
1,646,741
1,345,660
1,291,527
116,923
28,444
367,564
21,725
449,416
* 70
203,070
11,801
145,248
41,322
32,029
28,804
48,640
29,304
2,810
64,789
61,394
73,404
131,675
394,231
79,682
50,814
79,941
447,980
20,336
3,998
0
* 2,762
1,401,606

51,529
8,174,288
8,129,425
44,863
6,526,634
3,672,470
749,217
353,599
1,690,550
815,486
969,742
906,125
42,988
240,902
51,134
152,110
* 4,321
501,811
12,303
162,807
42,491
15,419
61,585
65,884
27,430
2,980
92,160
43,251
197,984
83,495
300,618
93,111
38,452
67,056
528,899
15,426
1,531
0
* 33
1,647,597

1,922,517
144,423,455
143,423,196
1,000,259
112,915,325
52,186,906
778,738
11,161,872
16,345,545
18,969,485
6,020,853
1,089,587
717,823
9,996,795
452,999
9,890,469
1,326
4,362,493
239,939
2,798,167
494,572
402,585
307,839
489,072
666,121
50,174
942,874
835,462
1,243,606
5,868,745
7,437,253
1,487,738
562,973
1,620,447
8,678,454
791,511
85,977
31,591
19,733
31,514,116

212,967
22,223,495
22,073,264
150,231
17,986,933
9,852,603
834,109
886,876
5,623,906
2,163,280
1,291,774
947,343
167,238
665,954
75,555
411,555
204
703,858
77,289
286,608
111,275
57,367
113,203
93,056
168,257
12,656
110,670
589,051
236,992
551,298
1,602,405
343,396
116,837
424,925
1,063,605
122,281
12,199
* 14,336
* 2,248
4,234,636

16,102
2,248,542
2,212,637
35,905
1,990,845
1,287,949
147,269
33,366
1,018,511
165,543
86,643
163,383
16,947
33,802
8,459
6,802
0
67,298
6,944
22,884
11,447
2,784
18,071
4,363
5,586
* 469
3,939
52,626
26,642
19,362
186,341
65,452
5,946
50,622
80,512
* 594
* 372
0
0
255,772

* 1,312
* 123,168
* 123,137
* 31
* 89,624
* 64,405
* 4,993
* 5,521
* 14,386
* 33,832
* 8,693
* 3,021
* 1,979
* 4,665
* 72
0
0
* 8,308
0
* 401
* 192
* 776
* 72
* 56
* 134
0
0
0
* 68
* 160
* 1,881
* 289
* 153
* 1,003
* 2,328
* 2,682
* 733
0
0
* 33,544

77,518
720,397
79,417

20,342
143,534
27,815

10,451
125,041
9,545

381,909
3,000,598
389,986

48,022
277,842
28,796

* 6,216
* 29,491
* 5,003

0
0
0

640,979

115,718

115,495

2,610,612

249,046

* 24,488

0

BUSINESSES WITH NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income [1,2]
Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income
Footnotes at end of table.

92

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued

Apparel

Leather and
allied
products

Wood
products

Paper
products

Printing and
related
support
activities

Petroleum
and coal
products

Chemical
manufacturing

Plastics,
rubber, clay,
refractory,
and glass
products

Nonmetallic
mineral
products

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

23,467
1,212,652
1,211,560
* 1,091
1,092,529
525,078
81,796
* 14,963
358,193
45,144
106,353
81,371
10,708
29,371
12,114
43,854
0
22,520
* 1,656
11,839
8,500
2,855
* 227
8,292
13,802
* 144
* 3,234
65,821
7,311
20,991
148,599
13,155
10,269
26,141
81,936
19,757
* 3,857
0
* 1,074
120,123
176,903
-56,780

4,099
208,383
208,383
0
* 189,865
* 68,157
* 24,407
* 5,909
* 34,850
* 51,397
* 151
* 48,557
* 4,521
* 6,561
* 13
* 20,501
0
* 4,160
0
* 1,235
* 929
* 138
* 3,628
* 373
* 716
0
0
* 268
* 16,925
* 46,047
* 2,246
* 1,243
* 1,018
* 2,506
* 8,627
* 52
0
0
0
18,518
* 29,458
* -10,940

38,706
2,785,434
2,746,549
38,885
2,503,723
1,498,876
236,501
152,787
977,507
174,846
184,567
227,331
21,157
93,067
6,428
41,336
* 28
132,860
7,122
37,412
18,700
2,782
22,671
29,474
13,787
* 1,022
9,263
35,036
51,618
58,680
176,103
30,433
10,064
45,431
134,487
24,193
* 3,514
0
* 1,653
281,240
421,111
-139,870

* 24
* 40,871
* 40,760
* 111
* 40,075
* 24,854
* 2,613
* 1,259
* 19,190
* 257
* 3,887
* 2,351
* 26
* 234
* 95
* 70
0
* 1,193
* 311
* 640
* 546
* 33
* 675
* 390
* 122
* 132
* 854
* 316
* 367
*1
* 4,912
* 626
* 462
* 343
* 2,868
0
0
0
0
* 797
* 5,427
* -4,630

32,253
2,534,859
2,531,003
3,856
2,190,646
999,663
49,028
* 43,580
761,464
81,720
125,957
62,085
54,400
94,436
11,947
22,294
* [4]
105,095
11,237
34,421
15,813
6,432
* 21,408
12,700
39,392
* 838
29,049
110,158
24,907
87,292
176,820
55,262
21,377
73,202
160,076
22,281
1,400
* 3,544
* 930
345,153
445,762
-100,609

418
252,607
109,136
* 143,470
240,585
* 198,062
* 4,479
* 926
* 41,969
0
* 157,333
* 6,646
* 702
* 2,611
*1
* 5,724
191
2,766
* 153
* 2,145
* 289
* 17
0
* 287
* 336
0
* 1,536
* 2,621
* 813
* 119
* 9,859
1,326
* 111
* 1,119
9,777
* 20
0
0
*6
12,022
12,995
* -972

11,785
1,011,168
1,000,301
10,867
936,292
436,766
17,821
33,768
194,376
117,523
100,149
26,872
11,590
24,095
* 6,295
74,461
* 16
31,133
4,741
19,821
7,510
2,487
* 4,574
11,379
20,665
* 772
6,467
23,786
15,512
31,035
94,578
9,993
14,209
21,718
56,493
* 5,723
* 1,529
0
* 277
70,529
131,821
-61,292

10,900
490,960
455,612
35,349
534,548
180,735
46,634
* 11,554
145,065
19,343
* 5,880
47,741
7,412
25,569
* 1,687
* 2,880
0
20,600
* 6,139
7,786
4,108
3,134
* 3,186
29,160
3,740
* 284
1,438
19,166
5,478
21,102
93,814
20,768
4,807
17,305
49,163
* 1,628
* 597
0
* 2,316
-56,363
33,775
-90,139

5,250
1,233,093
1,226,574
* 6,519
1,099,852
638,159
* 39,358
* 108,261
213,809
206,927
* 116,643
* 46,838
4,021
41,560
* 1,983
* 12,408
0
50,426
* 7,100
24,809
3,265
1,848
* 12,784
* 1,298
12,454
* 1,800
13,920
* 6,550
12,995
17,210
146,775
21,972
713
22,423
42,416
* 966
* 75
* 426
0
133,241
142,244
* -9,003

Net income status, item

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

93

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued

Apparel

Leather and
allied
products

Wood
products

Paper
products

Printing and
related
support
activities

Petroleum
and coal
products

Chemical
manufacturing

Plastics,
rubber, clay,
refractory,
and glass
products

Nonmetallic
mineral
products

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

16,190
969,053
967,966
* 1,088
792,150
423,055
70,926
* 12,143
272,943
39,228
* 101,160
73,344
4,171
21,388
* 2,994
35,398
0
11,174
* 1,564
11,596
4,295
676
* 205
* 4,060
11,558
* 144
* 3,233
54,410
6,504
13,798
81,162
11,184
2,663
19,268
50,651
* 12,645
* 1,786
0
0
176,903

* 3,088
* 189,512
* 189,512
0
* 160,053
* 50,642
* 23,567
* 4,524
* 33,828
* 36,414
* 27
* 47,717
* 2,605
* 108
* 13
* 20,501
0
* 2,890
0
* 1,034
* 869
* 136
* 3,628
* 364
* 688
0
0
* 152
* 16,881
* 46,047
* 2,188
* 978
* 995
* 2,466
* 6,816
* 52
0
0
0
* 29,458

30,191
2,343,349
2,332,259
11,090
1,922,239
1,185,243
129,937
117,509
766,216
133,617
170,700
132,737
13,293
84,256
* 2,701
33,527
* 27
76,380
* 2,683
28,252
10,130
2,491
15,109
15,939
12,170
* 981
7,825
23,248
44,292
33,948
130,338
19,770
8,443
32,324
116,893
* 20,279
* 2,793
0
* 391
421,111

* 12
* 20,567
* 20,456
* 111
* 15,140
* 11,464
* 357
* 1,259
* 9,533
* 257
* 450
* 391
* 20
* 224
* 22
0
0
* 396
* 311
*9
* 106
* 13
0
* 390
* 39
* 132
0
0
* 21
0
* 1,173
* 147
0
* 18
* 654
0
0
0
0
* 5,427

20,473
2,035,933
2,035,503
430
1,590,171
727,573
25,996
* 28,248
558,200
47,878
104,932
37,680
40,979
68,893
7,144
20,777
0
49,363
9,606
19,157
12,790
5,823
* 19,982
9,123
28,900
* 804
28,153
86,881
20,486
54,796
131,850
41,117
17,175
49,058
122,681
16,915
* 822
* 3,544
0
445,762

365
109,511
108,895
* 617
96,516
* 54,219
* 4,479
* 926
* 41,969
0
* 13,490
* 6,646
* 702
* 2,610
*1
* 5,724
* 160
* 2,733
* 153
* 2,145
* 284
* 14
0
* 286
* 331
0
* 1,536
* 2,621
* 813
* 119
* 9,833
* 1,310
* 111
* 1,119
* 9,693
0
0
0
0
12,995

8,015
858,043
852,516
5,527
726,222
314,815
* 9,616
* 32,930
130,306
112,551
42,767
13,355
11,026
18,607
* 6,256
74,308
* 16
14,278
* 4,671
18,100
4,123
1,276
* 3,727
6,590
20,145
* 720
6,289
20,505
12,611
28,023
81,531
8,484
11,144
19,640
34,144
* 4,716
* 1,252
0
0
131,821

4,174
366,086
346,779
* 19,306
332,310
131,473
* 24,968
* 8,527
* 104,493
* 15,673
* 2,043
* 24,232
2,100
10,870
* 454
* 916
0
14,241
* 5,825
6,244
1,439
* 2,235
* 1,014
* 3,234
* 2,057
* 233
* 364
* 3,955
* 2,298
* 13,124
* 65,085
* 13,950
* 3,259
8,925
35,532
* 26
0
0
0
33,775

5,002
1,192,877
1,186,364
* 6,513
1,050,633
624,870
* 39,358
* 107,612
213,775
* 193,957
* 116,634
* 46,467
3,423
41,287
* 316
* 12,395
0
43,127
* 6,964
23,680
2,528
* 1,842
* 10,732
* 889
12,253
* 1,789
13,794
* 6,148
10,186
11,099
141,973
19,973
* 629
21,885
37,886
* 966
* 75
* 426
0
142,244

* 5,779
* 34,647
* 4,354

* 979
* 7,820
0

* 3,233
* 15,861
* 1,693

*3
* 32
*2

* 3,563
* 10,381
* 145

*3
*4
* [4]

* 2,271
* 6,105
* 476

* 1,620
* 5,203
* 3,458

* 982
* 2,278
0

* 30,293

* 7,820

* 14,167

* 30

* 10,236

*4

* 5,629

* 1,744

* 2,278

Net income status, item

BUSINESSES WITH NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income [1,2]
Returns with Schedule C-EZ:
Number of returns
Business receipts
Business deductions
Net income
Footnotes at end of table.

94

Sole Proprietorship Returns, 2006
Statistics of Income Bulletin | Fall 2008

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2006—Continued
[All figures are estimates based on samples —money amounts are in thousands of dollars]
Manufacturing—continued

Net income status, item

Primary
Fabricated metal
metal industries
products

Machinery

Computer and
electronic
products

Electrical
equipment,
appliances, and
components

Transportation
equipment

Furniture and
related products

(35)

(36)

(37)

(38)

(32)

(33)

(34)

4,862
629,559
629,440
* 119
559,003
* 321,658
* 39,193
* 451
* 142,370
* 133,171
* 47,373
* 40,899
* 60
* 19,858
0
* 3,029
0
77,100
0
* 7,857
* 2,013
* 66
* 10,485
* 5,327
* 3,517
0
* 539
* 15,483
* 4,503
* 9,855
* 36,270
* 7,303
* 1,365
* 10,588
* 10,900
* 11,045
* 519
0
* 585
70,556
96,438
* -25,882

41,607
4,422,472
4,385,935
36,538
3,751,756
2,071,482
105,011
325,520
848,075
690,379
219,934
117,437
32,401
148,099
14,048
68,601
0
167,526
18,432
68,681
16,870
10,692
13,849
27,272
31,301
4,864
24,021
154,482
41,793
115,334
346,084
72,011
17,002
78,380
204,725
* 3,808
* 1,052
0
* 1,478
674,798
811,992
-137,194

23,892
2,197,311
2,193,510
3,801
1,751,795
649,961
60,612
83,513
393,133
73,019
133,482
93,798
5,499
78,480
3,448
82,076
0
107,172
9,923
38,979
10,498
7,102
7,506
13,095
14,373
* 1,146
8,817
73,712
31,864
195,137
218,270
39,175
8,558
55,411
83,405
* 7,483
* 1,579
0
* 814
445,516
490,326
-44,810

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depreciation
Employee benefit programs
Insurance
Legal and professional services
Meals and entertainment deducted
Mortgage interest
Other interest paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent on machinery and equipment
Rent on other business property
Repairs
Supplies
Salaries and wages
Taxes paid
Travel
Utilities
Other business deductions
Home office business deductions, total
Depreciation, Form 8829 [3]
Casualty loss, Form 8829 [3]
Excess—casualty depreciations, Form 8829 [3]
Net income less deficit [1,2]
Net income [1,2]
Deficit [2]
Footnotes at end of table.

8,037
214,865
214,761
* 103
170,334
37,076
* 4,432
* 5,406
* 31,514
* 4,172
* 5,728
* 14,177
* 2,569
26,910
* 332
* 3,942
0
4,359
* 513
1,162
840
1,863
0
* 11
2,849
* 57
* 335
5,985
* 1,363
16,162
* 8,930
2,283
7,401
4,764
39,456
* 1,031
* 130
0
* 100
44,531
65,378
-20,848

7,317
620,005
617,587
* 2,417
516,007
291,574
* 29,187
* 13,562
* 145,684
* 83,395
* 54,435
* 34,689
4,633
29,424
* 554
* 22,186
0
4,831
* 1,529
3,961
5,804
8,915
* 748
* 3,459
2,609
* 63
* 4,230
* 22,474
* 618
3,265
* 40,508
3,819
7,921
11,971
35,347
* 2,069
0
0
0
103,998
116,576
* -12,578

6,779
566,277
565,640
* 637
568,843
304,012

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A17ffaf28f541db0e. Public record. Not legal advice.