# Sole Proprietorship Returns, 2003

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Sole Proprietorship Returns, 2003
by Kevin Pierce

F

8

or Tax Year 2003, there were approximately
19.7 million individual income tax returns that
reported nonfarm sole proprietorship activity.
Profits for nonfarm sole proprietorships totaled
$230.3 billion, a 4.2-percent increase from Tax Year
2002. While a majority of the principal sole proprietorship industrial sectors reported increased profits,
a few sectors reported a decrease in profits. The
largest percentage increase in profits for a major
industrial sector was 13.1 percent for the real estate
and rental and leasing sector. The next largest
percentage growth in profits for a major industrial
sector was 7.3 percent for the transportation and
warehousing sector, followed by a 7.1-percent
growth reported by the professional, scientific, and
technical services sector. Three major industrial
sectors showed a decline in profits for 2003. The
largest percentage decrease in profits was for the
wholesale trade sector, with a 4.3-percent decrease,
followed by the health care and social assistance
sector with a 3.5-percent decrease, and the arts,
entertainment, and recreation sector with a 2.0percent decrease.
In addition to an increase in profits for sole
proprietorships in Tax Year 2003, there was an
increase of both receipts and deductions reported on
these returns: total business receipts increased 2.0
percent to $1,050.2 billion, and total business deductions grew 1.4 percent to $820.2 billion. The real
estate and rental and leasing sector reported the
largest percentage increase in both receipts and
deductions with a 17.5-percent increase in business
receipts and a 20.8-percent increase in deductions.
The wholesale trade sector reported the second
largest growth in receipts at 7.9 percent. The largest
percentage decrease in both receipts and deductions
was reported by sole proprietors in the finance and
insurance sector with a 15.7-percent decrease in
receipts and 20.8-percent decrease in deductions.
When inflation is taken into account, Tax Year 2003
total nonfarm sole proprietorship profits increased by
2.1 percent, receipts barely increased (less than 0.05
percent), and deductions decreased 0.6 percent.
Despite the overall increase in net income less defi-

Kevin Pierce is an economist with the Individual Research Section. This article was written under the
direction of Carl Greene, Chief.
8

cits, sole proprietorship deficits increased by 5.1
percent in real terms from 2002.
The North American Industry Classification
System (NAICS) for industrial coding was introduced
for the first time in Tax Year 1998. Because of the
coding changes, comparisons between data from
1998-2003 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.

ReturnsandReceipts
The number of individual income tax returns reporting
nonfarm sole proprietorship activity for 2003 increased 4.1 percent to over 19.7 million (Figure
A)[1]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of
returns for Tax Year 2003; the professional, scientific, and technical services sector, with
approximately 2.8 million returns, increased 3.0
percent, and the construction sector, with approximately 2.5 million returns, increased 9.4 percent, the
largest reported increase for any industrial sector.
The number of returns in the retail trade sector,
which had been the second largest sector for 2002,
increased by 4.1 percent to 2.4 million. Total business receipts (the sum of “income from sales and
operations” and “other business income”) for all
nonfarm sole proprietorship industries increased 2.0
percent, from $1,029.7 billion to $1,050.2 billion [2].
The real estate and rental and leasing sector showed
the largest percentage increase in receipts, reporting
an increase of $9.3 billion or 17.5 percent. The
second largest percentage increase in receipts for
2003 was in the wholesale trade sector with an
increase of 7.9 percent. Three industrial sectors
reported drops in business receipts for 2003, the
largest being the finance and insurance sector with a
15.7-percent decrease. The other two sectors
reporting decreases in receipts were the other
services sector, with a 2.9-percent decrease, and the

Sole Proprietorship Returns, 2003

Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,
Tax Years 2002 and 2003
[Number of returns is in thousands--money amounts are in billions of dollars]

Number of returns
Industrial sector

2002

2003

Total business receipts

Percentage

(2)

increase
(3)

All nonfarm industries........................... 18,925.5
Construction................................................. 2,278.2

19,710.1
2,491.2

Specialty trade contractors.......................
Wholesale trade (merchant wholesalers).....

1,708.4
308.0

Retail trade...................................................
Transportation and warehousing..................

(1)

2002

2003

Percentage

Total business deductions ¹
Percentage

2002

2003

increase
(6)

(7)

(8)

increase
(9)

(4)

(5)

4.1
9.4

1,029.7
168.5

1,050.2
175.8

2.0
4.4

808.9
140.4

820.2
146.9

1.4
4.6

1,998.4
288.5

17.0
-6.3

107.6
35.5

120.0
38.3

11.5
7.9

86.9
31.0

97.2
34.0

11.8
9.8

2,321.2
949.4

2,416.1
944.6

4.1
-0.5

179.4
54.9

177.0
58.1

-1.3
5.9

171.8
47.3

169.1
49.9

-1.6
5.7

Finance and insurance.................................
Real estate and rental and leasing...............

647.3
1,015.5

659.0
1,074.1

1.8
5.8

76.4
53.4

64.4
62.7

-15.7
17.5

60.7
30.8

48.1
37.2

-20.8
20.8

Real estate...............................................
Professional, scientific, and technical

960.1

1,019.6

6.2

49.3

58.8

19.2

26.9

33.2

23.4

services....................................................
Administrative and support and waste

2,672.4

2,752.8

3.0

124.9

128.5

2.8

76.4

76.5

0.2

management and remediation services...
Health care and social assistance................

1,754.5
1,722.5

1,881.2
1,762.8

7.2
2.3

44.9
97.1

46.7
99.4

4.0
2.4

32.6
55.8

33.7
59.6

3.4
6.9

Child day care services............................
Arts, entertainment, and recreation..............

677.0
1,105.7

721.4
1,098.5

6.6
-0.7

8.9
23.0

9.8
24.1

9.7
4.8

5.6
17.5

6.3
18.7

13.7
7.0

related industries..................................
Other services..............................................

946.1
1,968.9

937.7
1,995.0

-0.9
1.3

17.9
72.3

17.9
70.2

0.3
-2.9

12.5
56.8

12.7
54.2

2.1
-4.6

Personal and laundry services.................
All other industries........................................

1,225.1
2,181.9

1,239.5
2,346.2

1.2
7.5

33.4
99.5

31.9
105.0

-4.4
5.5

23.8
87.9

22.2
92.3

-6.7
5.0

Performing arts, spectator sports, and

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

retail trade sector, with a 1.3-percent decrease. In
constant dollar terms, total business receipts increased slightly from 2002 levels, with a less than
0.05-percent increase [3].

Deductions
Total business deductions (“cost of sales and operations” plus business expenses, including expenses for
home office) in current dollars increased 1.4 percent
from $808.9 billion for 2002 to $820.2 billion for 2003
(Figure A) [4,5]. The real estate and rental and
leasing sector showed the largest percentage increase in deductions with 20.8 percent. Finance and
insurance, other services, and retail trade were the
three industrial sectors that showed a decrease in
total business deductions. Sole proprietorships in the
finance and insurance sector showed the largest
percentage decrease, with a 20.8-percent drop in
deductions. As shown in Figure B, when accounting

for inflation, business deductions decreased 0.6
percent for 2003.
Representing 41.3 percent of total 2003 business
deductions, the cost of sales and operations was
$338.4 billion (Figure C), a 3.8-percent decrease
from the 2002 level. Total business “expenses” (total
business deductions minus the cost of sales and
operations) were $481.8 billion for 2003, a 5.4-percent increase from the 2002 amount. Figure D
graphically presents the main components of total
business expenses. The largest component, salaries
and wages, accounted for 14.0 percent of the total.
For 2003, salaries and wages totaled $67.6 billion, a
2.4-percent increase from 2002 (Figure C). The next
largest components of business expenses were cars
and trucks (11.1 percent), depreciation (8.7 percent),
and rent on business property, machinery, and equipment (7.4 percent). For 2003 these items were $53.5
billion, $41.8 billion, and $35.7 billion, respectively.

9

Sole Proprietorship Returns, 2003

Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2003
[Money amounts are in billions of dollars]

Total business receipts

Total business deductions

Constant dollars

Tax year
Current

1988............................

dollars
(1)
672.0

1989............................
1990............................
1991............................
1992............................
1993............................
1994............................
1995............................
1996............................
1997............................
1998............................
1999............................
2000............................
2001............................
2002............................
2003............................

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

2

Constant dollars

Percentage

Current

(2)
887.8

increase
(3)
--

dollars
(4)
545.7

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

-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
(³)

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

Amount

1

Net income less deficit (profits)
2

Constant dollars

2

Percentage

Current

(5)
720.9

increase
(6)
--

dollars
(7)
126.3

(8)
166.9

increase
(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

-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

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

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

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

Amount

Amount

Percentage

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.

10

³ Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

10

Car and truck expenses showed a 5.9-percent increase from 2002; depreciation, a 14.0-percent increase; and rent on business property, machinery,
and equipment, a 2.3-percent increase.
Depreciation deductions began to decline for Tax
Year 1986, following the enactment of the Tax Reform Act of 1986 (TRA86). TRA86 reduced the
allowable depreciation deduction by lengthening the
cost recovery periods and changing the depreciation
methods for property placed in service after July 31,
1986. In constant dollars, depreciation deductions
dropped 9.6 percent for 1989 and continued to decline through 1992 (Figure E). Beginning with 1993,
the trend reversed, and constant dollar depreciation
increased every year through 2002, except for 1995,
when it decreased 1.9 percent to $28.5 billion [6].
For 2003, depreciation increased (in real terms)
by 11.7 percent, the largest percentage increase in
depreciation since the enactment of TRA86. This
increase was partially due to a substantial increase in
the maximum allowable Section 179 deduction (the

amount of depreciable property that can be expensed
for the cost of certain qualifying property), from
$24,000 for 2002 to $100,000 for Tax Year 2003.
Although not all of the growth in depreciation in 2003
can be attributed to the change in the Section 179
deduction, the significant increase in the deduction
amount greatly impacted the depreciation deductions
for sole proprietorships [7]. This can be seen as the
Section 179 deduction, for returns that have sole
proprietorships, increased 32.2 percent to $19.4 billion
from $13.1 billion in 2002, exceeding the 14.0-percent
increase in depreciation deducted on Schedule C [8].
The 2003 depreciation deduction accounted for 5.1
percent of all business deductions, still below the
1985 (pre-TRA86) level of 5.7 percent. However,
this was up from 4.5 percent for 2002.
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. (Sched-

Sole Proprietorship Returns, 2003

Figure C
Components of Nonfarm Sole Proprietorship
Business Deductions, Tax Years 2002 and 2003
[Money amounts are in millions of dollars]

Business deductions

2002

2003

Percentage

(1)

(2)

(3)

Business deductions, total ¹...................... 808,900.7

820,206.7

1.4

Cost of sales and operations, total.......... 351,785.0

338,377.0

-3.8

increase

Inventory, beginning of year.....................

34,291.7

34,924.6

1.8

Cost of labor.............................................

30,389.0

28,032.1

-7.8

Purchases................................................. 227,085.8

218,445.3

-3.8

Materials and supplies..............................

45,589.2

46,554.6

2.1

Other costs...............................................

50,709.1

47,331.6

-6.7

Inventory, end of year............................... 36,279.8
Business expenses, total ¹........................ 457,115.6

36,911.3
481,829.8

1.7
5.4

Advertising expenses...............................

11,238.0

12,340.1

9.8

Car and truck expenses............................

50,489.4

53,466.6

5.9

Commissions............................................

14,066.8

13,502.4

-4.0

Contract labor...........................................

N/A

16,977.8

N/A

Depletion..................................................

461.9

639.0

38.3

Depreciation ²...........................................

36,642.0

41,755.0

14.0

Employee benefit programs......................

2,284.4

2,421.7

6.0

Home office business deductions ²...........

6,474.1

7,047.5

8.9

Depreciation, Form 8829......................

691.6

858.9

24.2

Insurance..................................................

16,004.3

17,489.2

9.3

Legal and professional services...............

8,365.9

8,284.6

-1.0

Meals and entertainment deducted..........

5,088.1

5,524.2

8.6

Mortgage interest......................................

5,006.9

4,762.9

-4.9

Other interest paid on business
indebtedness........................................

6,432.7

5,818.3

-9.6

Office expenses........................................

11,331.7

11,849.1

4.6

Pension and profit-sharing plans..............

1,085.2

1,182.0

8.9

Rent paid on machinery and equipment...

8,543.3

8,470.3

-0.9
3.4

Rent paid on other business property.......

26,311.5

27,201.7

Repairs.....................................................

12,669.1

13,221.2

4.4

Salaries and wages..................................

66,068.0

67,640.8

2.4

Supplies....................................................

24,615.8

25,507.2

3.6

Taxes paid................................................

14,901.4

15,179.6

1.9

Travel........................................................

9,110.2

9,313.7

2.2

Utilities......................................................

20,674.7

21,661.1

4.8

Other business deductions.......................

96,803.8

89,092.5

-8.0

¹ Includes returns with Schedule C-EZ attached. Schedule C-EZ was filed for certain
small businesses, i.e., those with net income and with receipts of $25,000 or less, business
expenses of $2,500 or less, used the cash accounting method, had no inventories or
employees, and had no deduction for a home office business and no allowable "passive"
activity losses. 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 Depreciation claimed on Form 8829 is included in "home office business deductions"
and excluded from "depreciation" shown above.
N/A -- Not available.
NOTES: Detail may not add to totals because of rounding. Percentage increases
were calculated before rounding.

ule C and Schedule C-EZ are the source of sole
proprietorship statistics.) Taxpayers could use
Schedule C-EZ if they: had business expenses of
$2,500 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. Almost 3.0 million
taxpayers filed Schedule C-EZ for Tax Year 2003.
Of the returns filed for 2003 in the administrative and
support services sector (the largest filers of this
schedule), taxpayers filed approximately 471 thousand Schedule C-EZ returns, or 25.0 percent of the
total for that sector [9]. For 2003, business receipts
from Schedule C-EZ filers totaled $17.9 billion, or 1.7
percent of total business receipts reported. Business
deductions reported on Schedule C-EZ returns accounted for only 0.2 percent of total business deductions for all industries, or $1.5 billion of the total
$820.2 billion. Even in the administrative and support
services sector with its higher concentration of
Schedule C-EZ filers, deductions reported on Schedule C-EZ accounted for just 0.6 percent of that
sector’s total business deductions.

ProfitsandLosses
For 2003, the majority of the principal industrial
sectors reported increased sole proprietorship profits
(net income less deficit). Figure B presents total
profits for all industries (in both current and constant
dollars) since 1988, while Figure G presents profits by
industrial sector for 2002 and 2003 [10]. Total profits
increased 4.2 percent from $221.1 billion for 2002 to
$230.3 billion for 2003. The real estate and rental
and leasing sector reported the largest percentage
change in profits for 2003, increasing 13.1 percent to
$25.5 billion. Real estate, the largest component of
this sector, had an increase in profits of 14.2 percent.
The transportation and warehousing sector reported
the second largest percentage increase in profits with
7.3 percent. The largest percentage decrease was
for the wholesale trade sector, which showed a 4.3percent decrease in profits for 2003. The professional, scientific, and technical services sector, the

11

Sole Proprietorship Returns, 2003

Figure D
Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2003 ¹
Type of expenses
Office expenses

2.5

Advertising expenses

2.6

Repairs

2.7

Commissions

2.8

Taxes paid

3.2

Contract Labor

3.5

Insurance

3.6

Total Business Expense:
$481.8 Billion

4.5

Utilities

5.3

Supplies

7.4

Rent paid on business property, machinery, and equipment

8.7

Depreciation ²

11.1

Car and truck expenses

12

14.0

Salaries and wages

28.1

Other business deductions ³
0

5

10

15

20

25

30

Percent of total
¹ Total business expenses equal all business deductions minus cost of sales and operations.
² Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above.
³ Other business deductions include: advertising expenses; depletion; employee benefit programs; interest; legal and professional services; office
expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office business deductions. Other business deductions also include
all Schedule C-EZ deductions ($1.5 billion).
NOTE: Detail may not add to 100 percent because of rounding.

largest of the industrial sectors with respect to profits,
showed a 7.1-percent increase in profits.
In constant dollars, total profits increased 2.1
percent for 2003 (Figure B). Figure E presents net
income and deficit separately for 1988 through 2003,
in current and constant dollars. For 2003, net income
(in constant dollars) increased 2.6 percent, and deficit
(in constant dollars) increased 5.1 percent.

IndustryTrends
12

Using receipts as a measure of business size, Figures

A and H show that retail trade was the largest sole
proprietorship industrial sector for 2003 with 16.9
percent of all business receipts. Total receipts for
this sector, at $177.0 billion, were 1.3 percent less
than the $179.4 billion reported for 2002, while
deductions also decreased by 1.6 percent, resulting in
a 4.4-percent increase in profits. The second largest
industrial sector was construction, with receipts
totaling $175.8 billion. This amount was 16.7 percent
of all sole proprietorship receipts for 2003, and it
represented a 4.4-percent increase from the 2002

Sole Proprietorship Returns, 2003

Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2003
[Money amounts are in billions of dollars]

Constant dollars

Current dollars
Tax year

Net income

Deficit

Depreciation ²

1

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)

1988.......................
1989.......................

145.5
152.4

19.2
19.7

26.1
24.5

192.2
194.0

25.4
25.1

34.5
31.2

-0.9

--1.1

--9.6

1990.......................
1991.......................
1992.......................

161.7
162.4
173.5

20.2
20.9
19.5

23.7
23.1
23.3

198.2
192.3
200.8

24.8
24.8
22.6

29.0
27.4
27.0

2.2
-3.0
4.4

-1.3
(³)
-8.8

-6.9
-5.8
-1.4

1993.......................
1994.......................

177.0
187.8

20.5
21.0

25.0
26.2

200.3
208.1

23.2
23.3

28.3
29.0

-0.3
3.9

2.8
0.3

4.9
2.6

1995.......................
1996.......................

191.7
200.1

22.5
23.4

26.2
27.4

208.2
213.2

24.4
24.9

28.5
29.2

(³)
2.4

4.8
2.1

-1.9
2.4

1997.......................
1998.......................

210.5
226.2

23.8
23.9

28.6
29.1

220.6
234.5

25.0
24.8

30.0
30.2

3.4
6.3

0.3
-0.7

2.9
0.7

1999.......................
2000.......................

233.4
245.2

25.5
30.5

30.6
32.2

238.5
245.2

26.0
30.5

31.3
32.2

1.7
2.8

4.9
17.3

3.7
2.8

2001.......................
2002.......................

250.2
257.3

32.8
36.2

33.4
36.6

244.4
247.5

32.0
34.8

32.7
35.3

-0.3
1.3

5.0
8.7

1.4
8.0

2003.......................

269.1

38.8

41.8

253.9

36.6

39.4

2.6

5.1

11.7

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 Less than 0.05 percent.

Figure F
Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2003
[Money amounts are in millions of dollars]

Industrial sector

Number of returns

Total business receipts

With

Percentage

On

Percentage

On

Percentage

Total

Schedule
C-EZ

of
total

Total

Schedule
C-EZ

of
total

Total

Schedule
C-EZ

of
total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

2,958,957

All nonfarm industries........................... 19,710,079
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.......................................

Total business deductions ¹

17,939.1

1,481.1

175,820.4
38,308.5
177,008.7
58,142.5
64,367.1
62,689.9

2,216.7
326.6
1,083.9
532.0
385.8
501.3

1.7
1.3
0.9
0.6
0.9
0.6
0.8

820,206.7

333,044
34,722
187,668
93,709
57,615
61,215

15.0
13.4
12.0
7.8
9.9
8.7
5.7

1,050,202.4

2,491,243
288,515
2,416,088
944,618
659,042
1,074,079

146,916.8
33,982.6
169,105.0
49,946.4
48,107.4
37,158.5

150.1
24.9
104.4
63.7
29.6
38.2

0.2
0.1
0.1
0.1
0.1
0.1
0.1

2,752,846

392,065

14.2

128,503.8

3,010.2

2.3

76,499.9

233.6

0.3

1,881,215
1,762,787
1,098,464
1,994,967
2,346,215

470,823
422,433
155,171
32,009
718,483

25.0
24.0
14.1
1.6
30.6

46,673.1
99,432.1
24,098.6
70,168.4
104,989.4

2,559.1
2,537.3
513.0
192.7
4,080.5

5.5
2.6
2.1
0.3
3.9

33,663.6
59,642.9
18,688.6
54,232.6
92,262.5

215.9
215.9
66.4
15.9
322.5

0.6
0.4
0.4
(²)
0.3

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.
NOTE: 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.

13

Sole Proprietorship Returns, 2003

Figure G
Nonfarm Sole Proprietorship Profits, by Selected
Industrial Sectors, Tax Years 2002 and 2003
[Money amounts are in billions of dollars]
Net income less deficit (profits)
Industrial sector

All nonfarm industries..............................

Percentage
2002

2003

(1)

(2)

increase
(3)

221.1

230.3

4.2

Construction...................................................

28.1

28.9

2.9

Specialty trade contractors.........................

20.7

22.9

10.6

Wholesale trade (merchant wholesalers)......

4.5

4.3

-4.3

Retail trade....................................................

7.6

7.9

4.4

Transportation and warehousing...................

7.7

8.2

7.3

Finance and insurance...................................

15.7

16.3

3.8

Real estate and rental and leasing................

22.6

25.5

13.1

Real estate.................................................

22.4

25.6

14.2

48.6

52.1

7.1

management and remediation services......

12.3

13.0

5.6

Health care and social assistance.................

41.3

39.8

-3.5

Professional, scientific, and
technical services.......................................
Administrative and support and waste

Child day care services..............................

3.3

3.5

3.9

Arts, entertainment, and recreation................

5.6

5.5

-2.0
-3.8

Performing arts, spectator sports,

14

and related industries..............................

5.4

5.2

Other services................................................

15.4

16.0

3.3

Personal and laundry services....................

9.7

9.8

1.2

All other industries.........................................

11.7

12.8

8.8

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

14

amount. Deductions also increased in this sector by
4.6 percent. Construction profits increased 2.9
percent for 2003, totaling $28.9 billion. Special trade
contractors reported the largest portion (79.1 percent) of these profits. As a group, special trade
contractors showed an increase of 11.5 percent for
receipts and an increase of 10.6 percent for profits.
The third largest sector was professional, scientific, and technical services, which accounted for 12.2
percent of sole proprietorship receipts for 2003.
Receipts increased 2.8 percent to $128.5 billion, and
deductions increased 0.2 percent to $76.5 billion.
Although this sector was 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 22.6 percent
(see Figure I). For 2003, the professional, scientific,
and technical services sector’s profits went from
$48.6 billion to $52.1 billion, a 7.0- percent increase
from 2002 profits.

The fifth largest sole proprietorship industrial
sector (after all other industries) with 9.5 percent of
total receipts was the health care and social assistance sector. A 2.4-percent increase in receipts for
this sector, accompanied by a 6.9-percent increase
in deductions, led to a decrease in profits of 3.5
percent. Despite the decline, this sector had the
second largest amount of profits among sole proprietors for 2003, reporting 17.3 percent of all sole
proprietorship profits.

Summary
Profits for the 19.7 million returns with sole proprietorship activity for Tax Year 2003 grew 4.2 percent
to a level of $230.3 billion. In constant dollars, total
nonfarm sole proprietorship profits increased 2.1
percent. The real estate and rental and leasing
sector reported the largest percentage growth in
profits at 13.1 percent, while the transportation and
warehousing sector had the second largest percentage increase, with 7.3 percent. The professional,
scientific, and technical services sector had the
largest profits of any sector at $52.1 billion, representing 22.6 percent of total sole proprietorship
profits, followed by the health care and social assistance sector at $39.8 billion, or 17.3 percent of total
profits. For all sole proprietorships, receipts and
deductions increased 2.0 percent and 1.4 percent,
respectively. The largest sole proprietorship industrial sector, based on business receipts, was the retail
trade sector, accounting for 16.9 percent of receipts.
This sector reported a 4.4-percent increase in profits.
The real estate and rental and leasing sector showed
the largest percentage increase in both receipts and
deductions, reporting a 17.5-percent increase in
receipts and a 20.8-percent increase in deductions.
Sole proprietors in the finance and insurance sector
reported the largest decline in both these areas,
showing decreases of 15.7 percent and 20.8 percent,
respectively.

DataSourcesandLimitations
The 2003 sole proprietorship estimates are based on
a stratified probability sample of unaudited Individual
Income Tax Returns, Forms 1040 (including electronically-filed returns), processed by the Internal
Revenue Service during Calendar Year 2004.
Returns in the sample were stratified based on: (1)
the presence or absence of Schedule C, Profit or

Sole Proprietorship Returns, 2003

Figure H
Nonfarm Sole Proprietorship Total Business Receipts, by Selected Industrial Sectors, Tax Year 2003

Arts, entertainment, and recreation

2.3

Wholesale trade (merchant wholesalers)

3.6

Administrative and support and waste management and
remediation services

4.4

Transportation and warehousing

Total Business Receipts:
$1,050.2 Billion

5.5

Real estate and rental and leasing

6.0

Finance and insurance

6.1

Other services

6.7

Health care and social assistance

9.5

10.0

All other industries

Professional, scientific, and technical services

12.2

Construction

16.7

Retail trade

16.9
0

5

10

15

20

Percent of total
NOTE: Detail may not add to 100 percent because of rounding.

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 0.05 percent to 100 percent. The 2003 nonfarm sole proprietorship data are
based on a sample of 55,935 returns and a population

of 19,987,964 returns [11]. The corresponding
sample and population for the 2002 data were 52,061
and 19,146,251 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 (CV’s) are used to measure that magni-

15

Sole Proprietorship Returns, 2003

Figure I
Nonfarm Sole Proprietorship Total Business Profits, by Selected Industrial Sectors, Tax Year 2003

16

Wholesale trade (merchant wholesalers)

1.9

Arts, entertainment, and recreation

2.4

Retail trade

3.4

Transportation and warehousing

3.6

Total Business Profits:
$230.3 Billion

All other industries

5.6

Administrative and support and waste management and
remediation services

5.6

Other services

6.9

Finance and insurance

7.1

11.1

Real estate and rental and leasing

12.6

Construction

17.3

Health care and social assistance

22.6

Professional, scientific, and technical services
0

5

10

15

20

25

Percent of total

NOTE: Detail may not add to 100 percent because of rounding. Profits are a designation for "net income less deficit," shown elsewhere in this
article.

16

tude. Figure J 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. The Appendix to this issue of the Bulletin discusses the
reliability of estimates based on samples, and the use
of coefficients of variation for evaluating the precision of estimates based on samples.

NotesandReferences
[1] For 2003, the 19,710,079 nonfarm sole proprietorship returns accounted for an estimated
21,871,032 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

Sole Proprietorship Returns, 2003

Figure J
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Sectors, Tax Year 2003
Coefficients of variation
Industrial sector

Total business
receipts

¹

Total business
deductions

Depreciation ²

Net income

Deficit

(3)

(4)

(5)

(1)

(2)

All nonfarm industries.............................................................

0.66

0.73

1.37

0.95

1.76

Construction...................................................................................

2.40

2.50

3.85

3.05

6.19

Special trade contractors...........................................................

2.87

3.03

4.62

3.48

8.12

Wholesale trade (merchant wholesalers)......................................

6.01

6.12

13.31

9.28

13.12

Retail trade....................................................................................

2.32

2.30

4.45

3.68

4.48

Transportation and warehousing....................................................

3.45

3.50

4.79

4.75

7.86

Finance and insurance...................................................................

2.90

2.86

7.29

4.71

7.84

Real estate and rental and leasing................................................

3.18

3.22

5.33

4.18

7.03

Real estate.................................................................................

3.31

3.37

5.84

4.25

8.01

2.16

2.44

4.28

2.54

5.58
8.52

Professional, scientific, and
technical services......................................................................
Administrative and support and waste
management and remediation services.....................................

3.80

4.31

7.05

4.10

Health care and social assistance.................................................

2.18

2.29

4.03

2.62

8.52

Child day care services..............................................................

5.84

6.97

12.56

5.99

17.03

Arts, entertainment, and recreation................................................

4.41

4.40

7.01

6.04

6.65

Performing arts, spectator sports,
and related industries.............................................................

4.93

4.80

8.01

6.52

7.30

Other services................................................................................

3.18

3.43

5.50

3.87

7.20

Personal and laundry services...................................................

4.16

4.53

7.70

5.07

9.79

All other industries.........................................................................

2.56

2.62

3.71

3.63

4.38

¹ Positive only.
² Excludes depreciation claimed on Form 8829.

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 2003. 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 diverge somewhat from those appearing in NAICS, the definitions are consistent.
[2] Statistics for “business receipts, total” in Table 2
represent the total receipts of the business,
mainly gross receipts from sales and operations.

Business receipts also include miscellaneous
business receipts, such as incidental sales of
scrap, shown separately in the statistics as
“other business income.” However, business
receipts exclude incidental investment income
received 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.
[3] Based on the overall implicit price deflator for
Gross Domestic Product (GDP). See U.S.
Department of Commerce, Bureau of Economic
Analysis, Survey of Current Business. Indices
used for this article were:

17

Sole Proprietorship Returns, 2003

Year Indices

Year Indices

Year Indices

1988
1989
1990
1991
1992
1993

1994
1995
1996
1997
1998
1999

2000
2001
2002
2003

75.7
78.6
81.6
84.4
86.4
88.4

90.3
92.1
93.9
95.4
96.5
97.9

100.0
102.4
103.9
106.0

[4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from
business income or loss, which is reported on the
attached Schedule C, Profit or Loss From
Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid
to owners qualify as personal income, not as a
business expense, and are, therefore, part of the
owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made
through the business as personal expenses on
Schedule A, Itemized Deductions. However,
the owner of a sole proprietorship may choose
to deduct any foreign taxes paid as a business
expense, unless the owner elects to claim these
taxes as a credit against U.S. income tax.
18

[5] 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.
[6] The increase in the depreciation deduction for
1993 may be attributed, in part, to a provision of
the Omnibus Budget Reconciliation Act of 1993
(OBRA93). The cost of certain tangible
property (as described in Internal Revenue Code
Section 179) may be treated as a current
expense rather than a capital expenditure
subject to depreciation deductions. The provision of OBRA93 (related to these expenses)
increased the maximum amount of investment

certain small businesses could immediately
deduct on property placed in service after 1992,
from $10,000 to $17,500. Following the
enactment of this provision, the deduction
increased 32.4 percent to $13.5 billion for 1993.
[7] Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount that
can be expensed for part or all of the cost of
Section 179 property increased from $24,000
for 2002 to $100,000 for 2003. For all tax
returns that had a Form 4562, Depreciation
and Amortization, the Section 179 property
deducted as an expense increased by 39.7
percent to $36.6 billion for 2003.
[8] For 2003, some $19.4 billion were deducted as
Section 179 property on returns that had a
Schedule C. This amount does not reflect
depreciation solely deducted on Schedule C as
it could also include depreciation taken on
Schedule E, Supplemental Income and Loss,
and Schedule F, Profit or Loss from Farming.
[9] Based on the NAICS system, 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.
[10] Net income minus deficit (loss) before Federal
income tax yields profits. Proprietors compute
tax on total “taxable income,” which includes
business profits, plus any other income.
[11] 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.
Source: IRS Statistics of Income Bulletin,
Summer 2005, Publication 1136 (Rev. 09-2005.)

18

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
Depreciation on machinery
deduction 1,2
and
equipment 1

Rent paid
on other
business
property 1

Interest paid
deduction 1,3

Payroll 1,4

Net income
less deficit

(2)
1,050,202,446
15,441,274
1,217,264
6,284,284
2,040,490
263,732
5,635,504
8,133,416
6,008,778
*247,100
*32,214
722,173
1,123,150
241,921
175,820,397
39,980,283
9,254,375
6,566,206
120,019,533
22,028,367
3,175,318
397,693
1,158,288
*300,456
2,122,259
*43,994
2,313,220
*199,387
384,512
619,855
709,687
*204,687
2,515,382
2,622,480
293,523
551,948
352,718
1,873,225
242,812
1,946,924

(3)
42,613,854
1,759,343
207,744
691,394
367,731
43,230
449,243
645,829
421,847
*9,476
*1,054
102,208
111,244
33,738
7,349,163
1,176,331
349,782
578,359
5,244,691
1,055,869
73,002
*3,556
39,997
*14,954
133,058
*15,628
96,031
*878
19,331
40,230
63,013
*12,171
168,143
186,845
15,326
7,642
12,799
80,182
5,471
67,612

(4)
8,470,304
138,632
15,829
88,667
6,009
*64
28,063
37,462
5,546
*2,228
*6,304
20,544
*2,841
*15,676
1,155,155
201,295
88,293
105,140
760,427
161,769
9,322
*14,583
3,468
*933
19,697
*344
34,317
*28
*54
*9,814
*6,729
*9,035
11,004
7,286
*3,096
*106
*757
10,551
*487
20,159

(5)
27,201,706
128,755
24,154
14,705
43,131
*43
46,721
40,567
31,269
*21
*4
4,902
*4,370
*4,147
1,077,222
134,687
77,240
26,299
838,995
591,205
108,348
*10,156
43,158
*992
27,006
*364
82,073
*45
*2,564
24,774
*2,692
*4,615
58,811
77,072
*14,017
*2,628
*13,638
68,092
*6,205
43,954

(6)
10,581,245
251,618
29,635
112,344
35,084
*8,469
66,085
106,141
72,886
*2,330
*120
16,844
13,961
*7,711
1,308,581
305,690
105,434
111,521
785,936
263,051
25,585
*138
13,744
*2,367
33,543
*614
32,254
*37
*1,013
27,832
3,780
*3,934
38,576
36,312
*3,005
*2,934
*6,268
13,022
*663
17,431

(7)
95,672,919
1,745,576
87,009
670,963
94,142
2,544
890,919
374,235
93,336
*35,120
*11,022
150,290
84,466
-25,048,903
4,759,591
1,304,156
801,577
18,183,579
2,917,233
311,812
*18,787
181,964
*46,469
340,252
*8,261
244,709
*3,017
*28,798
81,111
108,666
*13,574
459,973
416,609
*29,301
*32,706
55,966
221,845
*17,961
295,451

(8)
230,308,100
657,945
-274,353
257,458
359,705
15,849
299,285
874,963
658,453
-7,876
*-4,294
44,421
184,259
15,335
28,912,966
4,336,796
1,024,360
685,069
22,866,741
2,478,123
163,429
100,615
191,349
*72,782
115,311
*-15,068
231,449
*1,912
39,795
18,508
90,102
*18,454
222,529
398,166
62,944
134,960
36,748
319,753
98,520
175,865

288,515
123,829
100,796
63,891

38,308,469
16,964,570
16,967,556
4,376,342

628,515
359,966
171,075
97,473

121,967
42,738
39,794
39,435

447,432
212,311
173,647
61,474

235,417
85,791
123,478
26,148

1,062,830
414,147
513,403
135,280

4,336,931
1,566,413
1,614,670
1,155,849

Retail trade...................................................................................... 2,416,088
Motor vehicle and parts dealers....................................................
140,973
Furniture and home furnishing stores...........................................
54,743
Electronic and appliance stores....................................................
36,626
Building material and garden equipment and suppliers dealers...
44,420
Food and beverage stores............................................................
104,799
Health and personal care stores...................................................
146,564
Gasoline stations..........................................................................
23,912
Clothing and accessories stores...................................................
114,528
Sporting goods, hobby, book, and music stores...........................
134,552
General merchandise stores.........................................................
40,471
Miscellaneous store retailers........................................................
556,969

177,008,693
34,490,901
6,701,463
4,716,102
7,356,324
29,110,360
9,057,745
20,055,555
10,749,583
8,253,520
3,829,407
25,038,424

3,380,881
375,853
214,467
70,817
241,966
336,318
131,938
254,466
156,292
167,819
99,179
723,991

778,379
52,105
23,370
22,914
27,860
140,852
68,664
43,480
73,533
45,776
10,886
180,157

5,513,181
430,695
313,399
169,795
76,334
684,952
274,180
298,686
932,742
461,281
133,929
1,427,158

1,566,891
290,790
73,015
47,415
102,260
184,435
47,268
185,712
65,446
76,942
43,415
275,941

9,895,120
1,268,795
494,557
468,919
654,123
1,637,086
539,564
878,439
824,715
498,200
287,216
1,750,702

7,943,388
1,263,209
462,038
344,208
498,613
1,176,106
557,527
273,267
940,686
256,659
143,784
1,375,577

17,649,309

607,774

88,783

310,030

174,251

592,805

651,713

Industrial sector

Number
of returns

(1)
All nonfarm industries............................................................... 19,710,079
Agriculture, forestry, hunting, and fishing...................................
264,237
Animal production (including breeding of cats and dogs).............
38,066
Forestry and logging (including forest nurseries, timber tracts)....
44,858
Fishing..........................................................................................
59,052
Hunting and trapping.....................................................................
7,583
Support activities for agriculture and forestry...............................
114,678
Mining..............................................................................................
127,358
Oil and gas extraction...................................................................
103,554
Coal mining...................................................................................
2,420
Metal ore mining...........................................................................
*2,014
Nonmetallic mineral mining and quarrying....................................
5,377
Support activities for mining..........................................................
13,992
Utilities............................................................................................
9,528
Construction................................................................................... 2,491,243
Residential building construction..................................................
348,480
Nonresidential building construction.............................................
91,914
Heavy and civil engineering construction ...................................
52,454
Specialty trade contractors........................................................... 1,998,394
Manufacturing.................................................................................
309,082
Food manufacturing......................................................................
26,107
Textile and textile product mills.....................................................
9,175
Apparel..........................................................................................
16,396
Leather and allied products..........................................................
*4,584
Wood products..............................................................................
35,101
Paper products..............................................................................
*37
Printing and related support activities...........................................
34,568
Petroleum and coal products........................................................
*369
Chemical manufacturing...............................................................
12,598
Plastics, rubber, clay, refractory, and glass products...................
18,236
Nonmetallic mineral products........................................................
5,647
Primary metal industries................................................................
*3,479
Fabricated metal products............................................................
25,020
Machinery.....................................................................................
29,656
Computer and electronic products................................................
6,305
Electrical equipment, appliances, and components......................
6,072
Transportation equipment.............................................................
5,482
Furniture and related products......................................................
23,314
Medical equipment and supplies...................................................
6,979
Other miscellaneous manufacturing..............................................
39,958
Wholesale trade (merchant wholesalers).....................................
Durable goods, including machinery, wood, metals, etc...............
Nondurable goods, including food, fiber, chemicals, etc..............
Wholesale electronic markets and agents and brokers................

Nonstore retailers..........................................................................
Footnotes at end of table.

1,017,531

Business
receipts

19

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income

20

20

Business
receipts

Rent paid
Depreciation on machinery
deduction 1,2
and
equipment 1

Rent paid
on other
business
property 1

Industrial sector

Number
of returns

Interest paid
deduction 1,3

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Transportation and warehousing....................................................
Air and rail transportation.................................................................
Water transportation........................................................................
General freight trucking, local..........................................................
General freight trucking, long-distance and specialized freight
trucking.........................................................................................
Urban transit....................................................................................
Interurban and rural bus transportation...........................................
Taxi and limousine service...............................................................
School, employee, and charter bus industry....................................
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..................................................

944,618
13,712
4,040
198,134

58,142,450
566,734
326,235
15,257,867

5,143,722
269,918
33,211
1,379,391

1,702,761
7,079
*7
258,113

461,288
11,903
*1,249
74,545

981,989
29,229
13,706
265,681

3,781,910
28,900
*3,270
1,601,411

8,213,357
-102,017
127,891
1,926,286

303,382
*108
*1,337
126,216
19,278
19,615
**
**1,963

29,452,124
*4,792
*89,417
3,666,553
841,389
654,221
**
**262,690

2,830,192
*3,503
*9,655
179,299
100,437
40,731
**
**24,429

874,062
-*8,483
388,574
*22,714
*3,036
**
**614

167,256
*375
-65,409
*15,938
*6,625
**
**13,680

536,071
*797
*2,520
44,561
26,687
*11,164
**
**5,008

1,400,094
*62
*7,725
52,499
61,818
*187,656
**
**20,509

3,096,589
*-3,412
*13,113
1,065,695
160,190
90,342
**
**777,450

35,793
214,397
6,643

1,507,045
5,094,195
419,187

132,210
115,548
25,198

34,580
104,872
*626

61,531
35,228
7,550

19,897
19,721
*6,947

175,912
219,350
22,704

206,064
1,464,730
90,135

Information.........................................................................................
Publishing industries (except Internet).............................................
Motion picture and sound recording................................................
Broadcasting (except Internet) and telecommunications.................
Internet publishing and broadcasting...............................................
Internet service providers, Web search portals, and
data processing.............................................................................

266,914
67,748
73,322
37,523
18,218

7,160,599
2,333,972
1,937,208
823,095
247,671

484,197
57,812
277,339
46,043
*12,746

127,828
7,940
98,681
4,920
*500

209,538
28,913
87,094
28,946
*288

42,827
19,163
10,818
7,015
*644

539,201
206,146
91,257
83,503
*4,535

1,918,658
840,453
426,777
177,190
117,181

70,103

1,818,653

90,257

15,786

64,296

5,187

153,760

357,058

Finance and insurance.....................................................................
Credit intermediation and related activities......................................
Securities, commodity contracts, and other financial investments...
Investment bankers and securities dealers...................................
Securities brokers.........................................................................
Commodity contracts brokers and dealers....................................
Securities and commodity exchanges...........................................
Other financial investment activities (investment advice).............
Insurance agents, brokers, and related activities............................
Insurance agencies and brokerages.............................................
Other insurance related activities.................................................

659,042
106,399
148,529
9,105
18,293
10,945
1,418
108,769
404,113
321,632
82,481

64,367,096
6,209,948
30,191,751
2,676,549
3,657,882
645,822
819,284
22,392,215
27,965,397
24,039,818
3,925,579

1,297,546
229,421
228,254
42,524
20,176
17,433
222
147,898
839,870
740,185
99,686

280,294
44,741
59,238
*3,752
11,827
1,950
*54
41,655
176,315
145,177
31,139

1,406,047
128,491
417,350
5,273
69,222
76,891
*3,269
262,695
860,207
787,969
72,238

512,269
77,089
197,777
5,065
3,936
11,475
859
176,442
237,403
189,920
47,484

3,289,650
164,933
636,319
40,554
93,690
37,522
*2,205
462,347
2,488,398
2,274,469
213,929

16,258,749
1,783,240
3,112,504
319,901
713,783
-38,285
-9,437
2,126,541
11,363,005
9,468,600
1,894,405

Real estate and rental and leasing.................................................. 1,074,079
Real estate....................................................................................... 1,019,611
Lessors of real estate (including miniwarehouses and
self storage)...............................................................................
37,962
Offices of real estate agents, brokers, property managers,
and appraisers...........................................................................
826,818
Other activities related to real estate............................................
154,831
Rental and leasing services.............................................................
54,468
Automotive equipment rental and leasing.....................................
9,510
Consumer electronics and appliances rental................................
*59
-Formal wear and costume rental...................................................
Videotape and disc rental.............................................................
8,788
12,387
General rental centers and other consumer goods rental.............
Commercial and industrial machinery
and equipment rental and leasing..............................................
23,724

62,689,853
58,785,679

3,510,816
2,409,837

482,789
413,428

929,162
753,081

1,065,539
893,814

1,814,804
1,528,766

25,548,413
25,562,013

1,658,342

180,396

21,620

15,864

222,251

102,896

305,854

46,572,884
10,554,453
3,904,174
826,801
*70,358
-710,333
473,938

1,876,529
352,913
1,100,979
172,593
*5,000
-67,751
156,211

351,216
40,592
69,362
32,275
*18
-*4,117
2,329

612,914
124,303
176,081
21,404
*367
-101,108
23,207

394,051
277,512
171,725
35,384
*1,589
-*19,730
19,420

1,095,831
330,039
286,038
32,204
*7,197
-94,505
67,184

22,528,807
2,727,352
-13,600
-6,238
*-787
-4,054
-38,698

1,822,745

699,424

30,623

29,995

95,602

84,948

28,068

Professional, scientific, and technical services............................. 2,752,846
Legal services..................................................................................
345,072
Office of certified public accountants...............................................
52,910
Other accounting services...............................................................
328,180
282,455
Architectural, engineering, and related services..............................
103,056
Architectural services....................................................................
Engineering services....................................................................
101,625
Drafting, building inspections, and geophysical surveying...........
55,649
Surveying and mapping (except geophysical) services................
17,984
Testing laboratories......................................................................
*4,141
205,766
Specialized design services.............................................................
Footnotes at end of table.

128,503,788
34,334,811
4,133,890
7,548,470
13,670,388
6,800,013
4,706,997
1,456,290
549,189
*157,899
6,942,671

4,562,310
696,271
160,792
334,883
604,693
281,515
221,902
48,972
34,425
*17,878
328,388

848,677
195,963
34,754
54,956
84,749
46,020
23,314
*8,894
*3,419
*3,101
46,661

3,305,240
1,478,810
192,690
191,422
245,977
132,059
74,112
26,082
*9,657
*4,068
114,661

911,011
191,879
76,733
133,810
76,910
48,445
17,002
5,047
*5,258
*1,159
51,728

10,710,271
3,938,884
632,327
781,459
1,408,453
878,330
334,492
128,336
*57,572
*9,723
268,533

52,073,389
14,719,359
1,567,869
2,912,291
4,389,795
1,610,610
1,789,066
740,402
207,110
*42,606
1,899,401

Payroll 1,4

Net income
less deficit

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with and without net income
Rent paid
on other
business
property 1

Interest paid
deduction 1,3

Payroll 1,4

Net income
less deficit

(4)

(5)

(6)

(7)

(8)

381,629
2,055,656
993,127
41,500
177,607
33,223
810,199

60,583
371,012
172,669
3,681
42,157
12,913
139,591

96,612
985,067
387,063
20,474
100,696
18,655
458,179

24,254
355,697
150,661
6,076
17,559
4,028
177,374

275,578
3,405,037
1,326,427
134,130
304,508
91,256
1,548,716

4,094,351
22,490,323
14,361,672
264,854
1,553,383
443,441
5,866,972

46,673,130
45,319,360
1,353,770

2,722,264
2,565,521
156,743

398,231
379,512
18,719

577,020
553,076
23,944

346,043
315,387
30,655

5,199,152
5,033,754
165,398

13,011,493
12,852,063
159,430

452,532
1,762,787
830,997
196,229
35,984
89,087
44,788
9,381
158,119
8,361

5,399,729
99,432,106
84,162,289
30,766,264
2,727,351
28,122,145
4,750,398
2,815,646
6,798,594
785,230

207,871
3,230,851
2,561,674
725,690
79,873
1,071,090
164,955
99,113
151,409
21,722

61,697
677,682
559,356
242,713
18,978
106,674
60,948
17,169
42,777
12,216

311,957
4,155,192
3,691,179
1,158,606
157,526
1,041,924
332,202
172,060
404,035
84,327

55,406
902,531
634,948
112,096
17,885
300,689
80,744
24,978
32,706
4,978

208,456
13,966,739
12,456,902
3,879,463
198,341
6,135,416
533,538
489,285
324,551
91,670

1,959,651
39,824,870
35,046,842
14,858,097
1,386,790
9,877,619
1,768,403
776,851
3,652,154
187,397

89,493
23,192
144,453

2,918,059
1,438,981
2,363,476

94,491
39,909
94,645

35,053
12,046
8,168

228,017
45,846
51,330

24,113
11,304
21,409

193,163
228,156
321,885

1,019,360
488,716
837,393

31,910
14,619
62,262
133,467
721,443

676,146
347,418
3,085,477
2,054,352
9,782,571

18,777
*4,392
127,174
107,852
429,759

*2,615
*5,910
16,609
18,156
77,650

15,306
*10,802
87,330
102,712
263,169

*4,046
*1,527
141,865
14,162
110,029

61,434
*73,224
673,945
136,197
626,471

194,063
146,867
457,877
715,983
3,457,300

Arts, entertainment, and recreation.............................................
Performing arts, spectator sports, and related industries............
Museums, historical sites, and similar institutions.......................
Amusement, gambling, and recreation industries........................

1,098,464
937,668
*3,181
157,615

24,098,623
17,906,973
*75,367
6,116,283

1,741,959
1,201,825
*2,491
537,643

242,129
151,395
*939
89,795

758,412
434,780
*4,576
319,056

239,872
112,648
-127,224

1,108,401
574,478
*2,359
531,564

5,454,139
5,215,604
*12,427
226,109

Accommodation, food services, and drinking places...............
Accommodation………….............................................................
Travel accommodation (including hotels, motels, and bed
and breakfast inns)………………...........................................
RV (recreational vehicle) parks and recreational camps..........
Rooming and boarding houses.................................................
Food services and drinking places..............................................

394,921
53,092

40,021,000
4,987,599

1,704,837
557,140

267,169
28,278

2,586,718
180,961

887,245
496,301

7,219,940
641,776

1,378,624
156,982

32,744
10,004
10,343
341,829

3,849,405
616,555
521,640
35,033,401

432,139
91,035
33,966
1,147,697

21,972
5,180
*1,127
238,890

144,943
23,673
*12,344
2,405,757

407,107
49,681
39,514
390,944

545,841
26,255
69,681
6,578,164

131,956
9,273
15,754
1,221,642

Other services...............................................................................
Auto repair and maintenance.......................................................
Automotive mechanical and electrical repair and
maintenance..........................................................................
Automotive body shops.............................................................
Other auto repair and maintenance (including oil change,

1,994,967
358,007

70,168,424
23,261,429

2,993,982
1,171,703

921,449
204,236

4,654,787
889,354

853,862
342,963

6,709,410
2,751,495

15,951,142
3,129,008

183,147
99,152

11,696,511
7,935,849

578,035
368,002

90,820
42,254

495,257
222,696

143,983
106,299

1,437,437
868,840

1,430,969
1,263,981

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

75,708
397,472
1,239,488

3,629,070
14,970,683
31,936,311

225,666
641,418
1,180,861

71,162
208,150
509,063

171,402
348,072
3,417,361

92,681
179,638
331,261

445,219
1,218,487
2,739,428

434,059
3,040,245
9,781,889

268,044
253,600

3,452,032
3,111,079

75,777
84,385

15,396
35,162

20,403
23,433

20,320
22,919

*29,159
51,927

2,030,350
1,465,615

Industrial sector

Rent paid
Depreciation on machinery
1,2
deduction
and
equipment 1

Number
of returns

Business
receipts

(1)

(2)

(3)

--Continued
Computer systems design services.............................................
Other professional, scientific, and technical services..................
Management, scientific, and technical consulting services.......
Scientific research and development services...........................
Advertising and related services................................................
Market research and public opinion polling...............................
Other miscellaneous services....................................................

270,230
1,268,234
659,139
39,993
110,935
36,800
421,367

7,909,031
53,964,526
28,296,203
1,079,663
5,533,570
1,156,679
17,898,411

Administrative and support and waste management
and remediation services..........................................................
Administrative and support services............................................
Waste management and remediation services............................

1,881,215
1,854,638
26,577

Educational services....................................................................
Health care and social assistance...............................................
Ambulatory health care services..................................................
Offices of physicians (except mental health specialist)............
Offices of physicians, mental health specialist.........................
Offices of dentists.....................................................................
Offices of chiropractors.............................................................
Offices of optometrists..............................................................
Offices of mental health practitioners and social therapists.....
Offices of podiatrists.................................................................
Outpatient care centers and
other miscellaneous health practitioners...............................
Medical and diagnostic laboratories.........................................
Home health care services.......................................................
Other ambulatory health care services
(including ambulance services, blood and organ banks).......
Hospitals……………....................................................................
Nursing and residential care facilities..........................................
Social assistance…………….......................................................
Child day care services................................................................

Professional, scientific, and technical service

21

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Rent paid
Depreciation on machinery
1,2
deduction
and
equipment 1

Rent paid
on other
business
property 1

Interest paid
deduction 1,3

Payroll 1,4

Net income

(10)
901,239,184
11,685,118
878,055
4,868,431
1,626,759
*232,025
4,079,849

(11)
28,804,060
922,170
28,507
497,383
195,208
*8,561
192,511

(12)
6,406,136
78,597
*1,686
55,653
*394
-20,863

(13)
21,250,791
92,978
*22,144
11,623
37,061
-22,151

(14)
6,728,243
145,936
10,831
64,167
19,859
*6,889
44,191

(15)
77,746,711
1,344,053
*72,485
524,804
*42,707
*563
703,493

(16)
269,089,168
1,978,910
165,902
456,053
552,054
*49,378
755,523

94,727
78,985
*2,312
*7
4,215
9,207

6,385,141
4,581,508
*99,928
*32,214
675,151
996,340

395,763
236,660
*4,216
*861
93,370
60,656

15,315
1,415
*881
*1,462
8,974
*2,584

26,413
19,266
*21
*4
*4,128
*2,993

60,807
38,240
*794
*120
15,506
6,147

307,481
60,784
*12,275
*11,022
145,735
77,664

1,720,321
1,417,691
*12,253
*5,922
69,806
214,650

5,799
Utilities............................................................................................
Construction................................................................................... 2,059,160
278,418
Residential building construction..................................................
71,509
Nonresidential building construction.............................................
39,102
Heavy and civil engineering construction ...................................
Specialty trade contractors........................................................... 1,670,131

169,101
153,962,181
33,959,186
7,375,667
5,445,552
107,181,777

*20,398
5,703,561
933,460
274,135
377,840
4,118,126

*11,097
932,908
172,382
59,382
92,725
608,420

*2,354
842,995
97,774
66,386
12,947
665,888

*272
971,388
209,719
67,041
67,719
626,908

-20,757,213
3,874,361
899,955
646,299
15,336,598

55,972
32,452,557
5,156,049
1,245,650
923,420
25,127,438

Manufacturing................................................................................
Food manufacturing......................................................................
Textile and textile product mills....................................................
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.......................................................
Primary metal industries...............................................................
Fabricated metal products............................................................
Machinery.....................................................................................
Computer and electronic products................................................
Electrical equipment, appliances, and components......................
Transportation equipment.............................................................
Furniture and related products.....................................................
Medical equipment and supplies..................................................
Other miscellaneous manufacturing.............................................

197,047
16,915
*7,165
11,340
*4,236
17,719
*3
20,307
*365
6,586
12,470
4,919
*2,535
14,854
23,007
5,548
5,709
*3,020
14,236
4,332
21,780

18,683,742
2,801,357
*372,168
1,085,611
*297,401
1,568,813
*18,928
1,849,543
*198,867
317,506
519,990
686,271
*204,075
2,096,965
2,217,849
271,820
524,035
*225,748
1,809,829
213,417
1,403,548

721,742
47,824
*2,228
35,457
*14,841
62,210
*1,502
66,960
*853
*9,534
31,136
56,729
*8,306
118,142
144,109
*14,808
6,857
*5,874
57,219
*4,548
32,605

107,097
5,536
*14,552
*3,389
*61
16,389
*344
29,611
*28
*54
*1,732
*5,781
*9,035
8,510
*460
*225
*98
*646
9,058
*427
*1,164

469,232
73,758
*9,097
40,457
*992
*19,475
*364
66,924
*45
*932
10,178
*2,263
*4,615
45,507
68,064
*13,862
*2,589
*8,226
66,513
*5,825
29,544

161,677
14,279
-9,539
*2,367
15,011
*278
25,161
*37
*770
*23,807
*2,948
*154
22,821
20,088
*2,854
*2,869
*2,207
9,904
*108
6,475

2,342,701
255,813
*13,683
169,775
*46,469
230,087
*2,829
178,946
*3,017
*18,694
79,298
102,743
*13,574
408,014
331,894
*24,278
*31,978
*32,738
216,324
*7,709
174,836

3,310,097
235,398
*126,667
215,930
*75,029
247,415
*58
325,261
*1,923
79,923
81,427
95,591
*25,486
297,026
458,465
67,298
139,415
*54,833
396,809
113,318
272,825

Wholesale trade (merchant wholesalers)....................................
Durable goods, including machinery, wood, metals, etc...............
Nondurable goods, including food, fiber, chemicals, etc..............
Wholesale electronic markets and agents and brokers................

213,749
81,624
81,063
51,062

32,439,358
14,425,134
13,961,488
4,052,736

479,362
258,956
127,594
92,812

96,178
24,814
35,094
36,269

279,201
125,424
108,043
45,734

194,136
66,435
102,390
25,311

779,493
301,952
352,166
125,375

5,176,201
2,066,679
1,850,576
1,258,946

Retail trade..................................................................................... 1,229,365
Motor vehicle and parts dealers...................................................
90,525
33,141
Furniture and home furnishing stores...........................................
23,405
Electronic and appliance stores....................................................
33,337
Building material and garden equipment and suppliers dealers...
73,882
Food and beverage stores............................................................
60,857
Health and personal care stores...................................................
Gasoline stations..........................................................................
17,735
71,112
Clothing and accessories stores...................................................
64,628
Sporting goods, hobby, book, and music stores...........................
25,565
General merchandise stores.........................................................
Miscellaneous store retailers........................................................
284,764
Nonstore retailers.........................................................................
450,414
Footnotes at end of table.

143,765,706
28,479,958
5,690,419
4,099,237
6,199,386
25,566,515
8,248,134
16,198,307
8,769,575
6,128,178
3,027,173
18,943,039
12,415,784

1,918,078
263,886
102,066
60,676
178,129
255,651
94,635
152,401
100,065
73,255
43,038
357,758
236,518

549,203
38,429
20,493
12,692
21,506
126,122
63,461
38,371
64,640
27,041
8,072
90,245
38,131

3,893,016
287,540
257,445
146,753
64,177
535,127
224,969
247,214
690,476
263,116
83,934
921,377
170,888

958,569
200,052
49,625
30,668
68,938
138,752
24,103
133,173
36,480
39,182
19,288
143,355
74,953

7,473,968
1,015,538
397,749
405,007
453,203
1,374,280
482,803
655,835
576,624
322,514
205,258
1,173,543
411,613

14,878,164
1,845,618
791,953
456,877
664,582
1,569,236
849,493
453,261
1,318,497
683,596
289,071
3,185,793
2,770,187

Industrial sector

Number
of returns

(9)
All nonfarm industries............................................................... 14,447,889
153,496
Agriculture, forestry, hunting, and fishing...................................
11,759
Animal production (including breeding of cats and dogs).............
25,379
Forestry and logging (including forest nurseries, timber tracts)...
39,146
Fishing..........................................................................................
*5,404
Hunting and trapping....................................................................
71,807
Support activities for agriculture and forestry...............................
Mining.............................................................................................
Oil and gas extraction...................................................................
Coal mining...................................................................................
Metal ore mining...........................................................................
Nonmetallic mineral mining and quarrying...................................
Support activities for mining.........................................................

22

22

Business
receipts

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Businesses with net income
Business
receipts

Rent paid
Depreciation on machinery
deduction 1,2
and
equipment 1

Rent paid
on other
business
property 1

Industrial sector

Number
of returns

Interest paid
deduction 1,3

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

Transportation and warehousing...................................................
Air and rail transportation...............................................................
Water transportation.......................................................................
General freight trucking, local.........................................................
General freight trucking, long-distance and specialized freight
trucking........................................................................................
Urban transit...................................................................................
Interurban and rural bus transportation..........................................
Taxi and limousine service.............................................................
School, employee, and charter bus industry...................................
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................................................

758,447
8,367
2,653
153,869

49,145,098
411,403
313,929
12,128,886

3,483,658
18,897
*813
936,441

1,353,314
*1,854
*5
161,765

385,430
*5,177
*1,082
52,075

673,002
3,876
*803
169,427

2,895,112
*15,069
*2,709
1,227,433

10,198,691
177,593
201,607
2,397,360

236,979
*107
*1,337
115,039
16,564
13,835
**
*1,765

24,815,813
*4,404
*89,417
3,386,493
658,915
622,568
**
*238,883

2,061,248
*2,385
*9,655
145,450
62,818
*38,766
**
*6,855

651,226
-*8,483
385,467
*3,388
*2,768
**
**327

145,079
--61,277
*11,876
*6,625
**
**13,245

399,847
-*2,520
40,806
12,041
*11,164
**
**701

991,549
-*7,725
*36,441
*45,497
*187,656
**
**18,738

3,771,018
*217
*13,113
1,124,141
221,164
118,919
**
**109,828

28,404
174,098
5,429

1,389,124
4,800,841
284,422

97,928
85,165
17,237

33,710
103,837
*484

57,182
27,473
*4,340

13,813
15,395
*2,607

159,432
193,442
*9,421

302,259
1,654,020
107,451

Information.......................................................................................
Publishing industries (except Internet)...........................................
Motion picture and sound recording...............................................
Broadcasting (except Internet) and telecommunications................
Internet publishing and broadcasting..............................................
Internet service providers, Web search portals, and
data processing...........................................................................

173,022
52,684
47,156
22,177
9,819

5,902,176
2,081,813
1,506,253
677,311
232,175

245,351
33,922
163,553
13,858
*7,531

63,598
6,777
39,844
*4,388
*491

111,631
22,491
44,834
*347
--

19,651
12,109
2,918
*1,681
*488

361,290
127,050
69,363
*63,108
*1,205

2,624,470
956,533
636,585
307,993
152,504

41,186

1,404,624

26,486

12,099

43,959

*2,455

100,565

570,855

Finance and insurance....................................................................
Credit intermediation and related activities....................................
Securities, commodity contracts, and other financial investments..
Investment bankers and securities dealers.................................
Securities brokers........................................................................
Commodity contracts brokers and dealers..................................
Securities and commodity exchanges.........................................
Other financial investment activities (investment advice)............
Insurance agents, brokers, and related activities...........................
Insurance agencies and brokerages............................................
Other insurance related activities................................................

475,173
81,891
95,649
8,189
13,772
3,964
*98
69,626
297,632
238,066
59,566

47,236,411
5,611,058
15,411,609
1,374,314
2,603,358
328,447
*441,519
10,663,971
26,213,744
22,499,459
3,714,285

984,611
150,859
145,156
31,478
18,362
1,786
*95
93,436
688,596
607,770
80,825

242,442
29,347
52,461
*3,391
9,954
*120
*7
38,990
160,634
137,146
23,489

1,250,329
117,376
333,520
4,772
64,213
43,265
*1,562
219,707
799,433
730,512
68,921

291,462
36,940
71,579
*424
2,745
1,137
*143
67,130
182,943
165,636
17,307

2,951,343
135,001
507,694
*37,160
87,259
*17,296
*1,004
364,976
2,308,648
2,103,728
204,920

18,378,639
2,019,770
4,158,299
381,233
780,463
144,478
*3,569
2,848,556
12,200,570
10,139,543
2,061,027

Real estate and rental and leasing.................................................
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.................................................
Videotape and disc rental............................................................
General rental centers and other consumer goods rental...........
Commercial and industrial machinery
and equipment rental and leasing............................................

780,417
754,747

56,363,616
53,825,115

2,267,682
1,847,828

360,522
308,621

707,030
603,692

422,458
381,497

1,353,799
1,208,708

28,295,949
27,709,341

20,164

1,122,786

81,383

19,496

9,366

66,425

55,639

530,167

630,362
104,221
25,670
5,752
*42
-3,776
4,461

43,909,513
8,792,816
2,538,501
552,920
*51,819
-398,154
416,707

1,537,956
228,489
419,854
62,584
*1,255
-*47,681
78,865

265,887
23,238
51,901
*29,861
*18
-*68
*2,280

499,799
94,527
103,339
*16,943
*292
-54,825
*14,416

221,870
93,202
40,962
10,826
*521
-*2,218
*3,856

948,480
204,589
145,092
*21,628
*5,864
-*42,737
*49,008

23,778,658
3,400,516
586,608
76,375
*3,658
-56,033
67,733

Payroll 1,4

Net income

11,639

1,118,901

229,469

19,674

16,863

23,540

25,854

382,809

Professional, scientific, and technical services............................ 2,074,465
Legal services.................................................................................
272,849
41,712
Office of certified public accountants..............................................
Other accounting services..............................................................
269,118
Architectural, engineering, and related services............................
216,408
Architectural services..................................................................
77,329
Engineering services...................................................................
73,492
Drafting, building inspections, and geophysical surveying..........
45,407
Surveying and mapping (except geophysical) services...............
16,039
Testing laboratories.....................................................................
*4,141
Specialized design services...........................................................
149,006
Footnotes at end of table.

118,750,151
32,727,847
3,859,354
7,270,766
12,362,462
6,108,292
4,228,938
1,342,304
525,029
*157,899
6,489,087

3,364,363
577,630
131,564
292,910
448,255
216,194
149,739
30,616
33,827
*17,878
248,442

668,087
167,065
30,689
52,636
66,778
41,274
18,122
*862
*3,419
*3,101
37,897

2,819,990
1,355,130
175,915
166,780
216,158
122,133
62,117
23,510
*4,330
*4,068
99,398

669,658
157,487
48,926
113,451
56,205
36,204
11,089
*2,495
*5,258
*1,159
44,886

8,980,812
3,477,537
585,731
734,905
1,201,080
769,243
277,081
*87,460
*57,572
*9,723
235,861

56,352,518
15,271,250
1,647,591
3,145,001
4,682,004
1,741,455
1,917,508
762,106
218,328
*42,606
2,137,908

23

Sole Proprietorship Returns, 2003

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors Classified with the North American Industry Classification System-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

(9)

(10)

Rent paid
Depreciation on machinery
1,2
deduction
and
equipment 1
(11)

(12)

Rent paid
on other
business
property 1

Interest paid
deduction 1,3

Payroll 1,4

Net income

(13)

(14)

(15)

(16)

Professional, scientific, and technical service
--Continued
Computer systems design services.................................................

202,291

7,378,454

298,474

53,006

69,077

16,885

232,505

4,374,347

Other professional, scientific, and technical services.....................
Management, scientific, and technical consulting services...........

923,081
482,960

48,662,182
24,969,847

1,367,088
642,646

260,017
105,864

737,533
261,052

231,817
92,656

2,513,192
611,400

25,094,417
15,773,203

Scientific research and development services..............................
Advertising and related services...................................................

27,505
84,581

982,032
5,165,798

27,044
120,430

2,893
25,706

16,673
86,216

*3,042
11,292

123,647
291,066

374,131
1,735,877

Market research and public opinion polling..................................
Other miscellaneous services.......................................................

28,524
299,511

1,134,165
16,410,340

27,585
549,382

12,652
112,902

17,470
356,121

4,028
120,800

87,135
1,399,944

487,066
6,724,140

and remediation services............................................................. 1,544,033
Administrative and support services............................................... 1,528,741
Waste management and remediation services...............................
15,292

41,468,980
40,319,533
1,149,448

1,764,789
1,670,542
94,247

301,517
289,906
11,611

413,295
400,352
12,943

243,912
221,315
22,596

4,128,466
3,988,922
139,544

15,181,985
14,946,360
235,625

Administrative and support and waste management

359,621

4,915,646

121,044

27,365

252,305

16,383

175,305

2,422,059

Health care and social assistance.................................................. 1,440,163
Ambulatory health care services.....................................................
674,911
Offices of physicians (except mental health specialist)................
164,168

93,525,106
80,714,718
29,583,891

2,658,692
2,220,460
635,614

534,776
459,855
207,147

3,660,225
3,341,502
1,058,551

697,429
528,487
101,732

12,863,719
11,784,370
3,655,464

41,780,242
36,281,898
15,163,300

Offices of physicians, mental health specialist.............................
Offices of dentists........................................................................

30,036
79,689

2,575,235
27,461,289

68,663
975,058

10,990
102,255

143,145
978,509

2,273
270,421

154,712
5,952,661

1,419,987
10,000,749

Offices of chiropractors................................................................
Offices of optometrists.................................................................

35,636
8,770

4,565,997
2,675,511

145,693
95,734

43,443
16,377

297,205
157,941

62,153
24,230

502,898
470,438

1,905,740
784,979

Offices of mental health practitioners and social therapists.........
Offices of podiatrists....................................................................

125,974
3,312

6,510,277
743,533

131,998
16,015

31,913
5,099

375,124
74,004

31,293
*3,462

301,832
87,992

3,765,071
273,371

Outpatient care centers and
other miscellaneous health practitioners...................................

62,358

2,495,960

62,111

26,312

160,511

16,054

138,567

1,209,672

Medical and diagnostic laboratories............................................
Home health care services...........................................................

20,974
119,386

1,404,069
2,154,880

30,936
48,749

11,691
4,248

44,681
43,362

8,897
7,305

218,021
269,756

496,501
997,661

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

24,607

544,068

9,891

*378

8,469

*668

32,028

264,863

Hospitals…………….......................................................................
Nursing and residential care facilities.............................................

12,299
43,250

335,754
2,281,551

*4,389
87,024

*5,910
8,369

*8,711
63,300

*1,527
103,417

*71,831
423,121

150,359
558,380

Social assistance……………..........................................................
Child day care services...................................................................

101,459
608,244

1,740,164
8,452,920

58,303
288,516

12,232
48,410

71,214
175,498

10,326
53,672

114,249
470,148

863,724
3,925,882

Arts, entertainment, and recreation................................................
Performing arts, spectator sports, and related industries...............

648,795
538,178

19,854,120
15,518,451

735,844
540,004

126,189
98,293

451,348
268,206

93,707
53,284

697,373
382,044

8,559,437
7,630,323

Museums, historical sites, and similar institutions..........................
Amusement, gambling, and recreation industries...........................

*1,306
109,311

*45,796
4,289,873

*522
195,318

*830
27,066

-183,142

-40,423

*2,359
312,971

*19,291
909,822

Accommodation, food services, and drinking places..................
Accommodation…………................................................................

244,293
26,632

29,707,352
3,212,028

894,839
270,106

177,984
18,352

1,703,697
67,404

446,824
244,236

4,882,413
360,327

3,420,365
646,235

Travel accommodation (including hotels, motels, and bed
and breakfast inns)………………..............................................

17,903

2,403,718

192,530

13,091

33,245

209,139

299,412

510,920

RV (recreational vehicle) parks and recreational camps.............
Rooming and boarding houses....................................................

4,219
4,510

395,309
413,001

60,801
16,776

*4,475
*785

*22,135
*12,024

*13,264
*21,833

*11,070
49,845

59,693
75,622

Food services and drinking places..................................................

217,662

26,495,324

624,733

159,632

1,636,293

202,588

4,522,086

2,774,130

Other services.................................................................................. 1,568,389
Auto repair and maintenance..........................................................
274,374
Automotive mechanical and electrical repair and maintenance...
139,513

61,344,289
19,692,849
9,783,588

2,059,536
830,918
391,392

722,996
171,562
71,253

3,853,502
689,477
387,744

639,151
262,545
112,705

5,383,163
2,159,651
1,141,743

18,375,200
3,801,599
1,770,618

Educational services........................................................................

24

Automotive body shops................................................................
Other auto repair and maintenance (including oil change,

74,599

6,786,002

295,664

33,991

162,548

78,057

700,754

1,415,354

lubrication, and car washes).....................................................
Miscellaneous repairs.....................................................................

60,262
299,530

3,123,259
13,333,515

143,861
454,945

66,319
164,585

139,185
252,562

71,783
134,272

317,154
998,932

615,627
3,603,479

Personal and laundry services........................................................
Religious, grantmaking, civic, professional

994,485

28,317,925

773,674

386,849

2,911,462

242,334

2,224,580

10,970,122

and similar organizations.............................................................

210,974

3,251,159

36,697

*8,286

*17,862

*13,641

*20,726

2,219,867

216,753
2,684,730
25,879
Unclassified establishments...........................................................
* 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 information for specific taxpayers.

28,664

17,959

8,181

48,281

1,707,524

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.

24

³ Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.
Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.

4

NOTES: Detail may not add to totals because of rounding. (Z) is less than $500.

Sole Proprietorship Returns, 2003

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors
Classified with the North American Industry Classification System
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agriculture, forestry, hunting and fishing
Animal
All
Net income status, item

nonfarm

Total

industries

Mining

Forestry

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Support
Hunting
Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH AND
WITHOUT NET INCOME
19,710,079

264,237

38,066

44,858

59,052

7,583

114,678

127,358

Business receipts, total ¹..................................... 1,050,202,446

15,441,274

1,217,264

6,284,284

2,040,490

263,732

5,635,504

8,133,416

Income from sales and operations ¹.................... 1,033,934,376

7,774,988

Number of returns ¹..............................................

15,153,229

1,145,147

6,243,888

1,986,969

259,904

5,517,320

16,268,071

288,045

72,118

40,395

53,520

*3,828

118,184

358,429

Business deductions, total .................................

820,206,714

14,811,902

1,491,763

6,026,825

1,680,784

247,883

5,364,647

7,262,974

Cost of sales and operations, total......................

338,376,959

4,817,631

348,401

2,337,191

266,179

53,273

1,812,587

1,615,698

Inventory, beginning of year.............................

34,924,642

446,063

54,792

195,124

*25,631

*27,824

142,691

170,382

Cost of labor.....................................................

28,032,070

352,253

*31,740

181,147

*52,410

--

86,956

126,023

Purchases........................................................

218,445,328

3,097,868

235,053

1,113,494

110,114

*21,078

1,618,128

433,673

Materials and supplies.....................................

46,554,634

316,214

31,169

139,965

84,040

*114

60,926

213,198

Other costs.......................................................

47,331,624

1,010,410

46,768

864,981

*17,823

*30,816

50,022

852,388
179,966

Other business income.......................................
1,2

Inventory, end of year......................................

36,911,339

405,177

51,121

157,520

*23,840

*26,559

146,136

Advertising expenses..........................................

12,340,084

85,933

15,003

19,801

14,337

4,343

32,449

28,011

Car and truck expenses......................................

53,466,645

672,137

87,450

134,872

134,863

18,143

296,810

220,108

Commissions.......................................................

13,502,446

115,164

9,045

61,240

*871

*3,194

40,814

6,856

Contract labor.....................................................

16,977,798

334,429

42,424

158,766

41,268

*556

91,415

133,375

Depletion.............................................................

639,008

4,920

*552

*4,362

*(Z)

*4

*1

566,614

Depreciation........................................................

41,754,963

1,752,345

205,855

690,842

364,159

42,876

448,614

644,651

Employee benefit programs................................

2,421,673

15,914

3,464

5,936

*4,085

*5

2,424

9,805

Insurance............................................................

17,489,210

421,614

34,662

206,905

56,701

3,375

119,970

105,846

Legal and professional services..........................

8,284,557

84,962

14,695

22,776

17,522

2,949

27,020

108,162

Meals and entertainment deducted.....................

5,524,213

58,045

4,792

11,270

28,011

*1,365

12,607

20,909

Mortgage interest................................................

4,762,929

91,182

10,797

39,831

11,807

*7,510

21,236

24,520

Other interest paid on business indebtedness....

5,818,316

160,436

18,838

72,514

23,276

*959

44,849

81,622

Office expenses..................................................

11,849,079

58,055

9,856

15,421

7,849

487

24,443

46,093

Pension and profit-sharing plans........................

1,182,019

2,331

*12

2,054

--

--

*265

3,088

Rent paid on machinery and equipment.............

8,470,304

138,632

15,829

88,667

6,009

*64

28,063

37,462

Rent paid on other business property.................

27,201,706

128,755

24,154

14,705

43,131

*43

46,721

40,567

Repairs................................................................

13,221,220

600,030

25,936

328,764

78,826

18,132

148,372

155,295

Salaries and wages.............................................

67,640,849

1,393,323

55,269

489,816

41,732

2,544

803,963

248,212

Supplies..............................................................

25,507,159

408,513

37,435

86,959

103,362

11,039

169,717

101,738

Taxes paid...........................................................

15,179,639

271,182

11,588

88,286

39,564

6,131

125,613

228,780
24,092

Travel..................................................................

9,313,708

108,603

33,712

13,600

31,268

4,239

25,784

Utilities................................................................

21,661,093

212,283

36,407

64,196

29,445

13,349

68,886

81,661

Other business deductions.................................

89,092,512

2,834,921

436,541

1,060,740

325,524

51,086

961,029

2,704,972

Home office business deductions.......................

7,047,483

33,441

*9,009

5,122

*10,279

*2,216

6,815

7,922

Depreciation, Form 8829..................................

858,891

6,998

*1,890

*552

*3,572

*355

*630

1,178

Casualty loss, Form 8829................................

22,675

--

--

--

--

--

--

--

Excess--casualty losses and depreciations,
Form 8829.....................................................

567,371

*5,969

*1,509

*66

*3,337

--

*1,057

*56

1,2
Net income less deficit........................................

230,308,100

657,945

-274,353

257,458

359,705

15,849

299,285

874,963

Net income1,2 ......................................................

269,089,168

1,978,910

165,902

456,053

552,054

*49,378

755,523

1,720,321

Deficit ²................................................................

38,781,068

1,320,965

440,255

198,594

192,348

33,529

456,238

845,359

Footnotes at end of table.

25

Sole Proprietorship Returns, 2003

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors
Classified with the North American Industry Classification System--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Agriculture, forestry, hunting and fishing
Animal
All
Net income status, item

nonfarm

Total

industries

Mining

Forestry

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Support
Hunting
Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH NET INCOME
Number of returns ¹..............................................

14,447,889

153,496

11,759

25,379

39,146

*5,404

71,807

94,727

Business receipts, total ¹.....................................

901,239,184

11,685,118

878,055

4,868,431

1,626,759

*232,025

4,079,849

6,385,141

Income from sales and operations ¹....................

887,733,548

11,533,387

850,756

4,860,988

1,577,028

*228,283

4,016,332

6,086,330

Other business income.......................................

13,505,636

151,732

27,299

7,443

49,731

*3,741

63,517

298,812

..............................

632,155,833

9,706,259

712,203

4,412,378

1,074,705

*182,646

3,324,326

4,668,298

Cost of sales and operations, total......................

265,759,515

3,440,714

305,337

1,781,800

198,998

*51,404

1,103,175

1,105,238

Inventory, beginning of year.............................

22,344,135

232,817

*42,067

102,346

*11,776

*27,824

48,803

89,463

Cost of labor.....................................................

23,412,057

268,848

*29,053

126,207

*42,527

--

*71,061

97,308
315,386

Business deductions, total

26

1,2

Purchases........................................................

168,773,986

2,126,730

205,569

846,926

*107,773

*19,780

946,682

Materials and supplies.....................................

39,890,462

215,770

*27,104

99,044

*33,418

--

56,204

172,565

Other costs.......................................................

34,816,178

789,058

*40,528

671,958

*13,552

*30,359

32,661

512,841
82,325

Inventory, end of year......................................

23,477,302

192,508

*38,982

64,681

*10,049

*26,559

52,237

Advertising expenses..........................................

9,501,306

54,185

5,643

12,345

12,678

*2,382

21,137

17,419

Car and truck expenses......................................

41,280,004

452,102

59,327

97,395

61,956

*16,528

216,896

172,968

Commissions.......................................................

11,236,625

73,961

*4,742

27,961

--

*1,123

40,135

5,194

Contract labor.....................................................

14,186,286

228,350

*39,571

134,998

*12,887

--

40,895

120,618

Depletion.............................................................

473,040

*4,352

--

*4,352

--

--

--

411,974

Depreciation........................................................

28,184,392

920,306

28,507

496,885

194,366

*8,206

192,341

394,598

Employee benefit programs................................

2,036,077

13,127

*2,819

5,324

*3,891

--

1,094

7,432

Insurance............................................................

14,004,080

294,100

20,209

157,515

33,563

*2,468

80,346

88,167

Legal and professional services..........................

6,184,806

51,375

8,497

12,663

11,234

*2,595

16,386

58,012

Meals and entertainment deducted.....................

4,432,826

42,845

2,318

6,030

23,482

*737

10,277

17,536

Mortgage interest................................................

2,979,847

44,055

*2,652

13,065

*7,750

*6,017

14,572

13,729

Other interest paid on business indebtedness....

3,748,396

101,881

*8,179

51,102

12,109

*872

29,619

47,079

Office expenses..................................................

9,458,836

39,365

5,518

9,247

4,940

*247

19,412

31,381

Pension and profit-sharing plans........................

1,108,390

2,042

--

2,042

--

--

--

2,166

Rent paid on machinery and equipment.............

6,406,136

78,597

*1,686

55,653

*394

--

20,863

15,315

Rent paid on other business property.................

21,250,791

92,978

*22,144

11,623

37,061

--

22,151

26,413

Repairs................................................................

9,648,392

356,936

10,959

212,062

52,429

*16,578

64,908

117,141

Supplies..............................................................

20,015,429

279,469

7,117

54,266

86,116

*9,639

122,331

89,886

Salaries and wages.............................................

54,334,654

1,075,205

*43,433

398,598

*180

*563

632,432

210,173
171,391

Taxes paid...........................................................

11,821,821

180,166

8,043

50,344

28,888

*5,342

87,548

Travel..................................................................

6,836,303

58,369

12,356

4,756

24,331

*68

16,859

11,690

Utilities................................................................

16,357,487

125,699

17,173

35,878

18,452

*7,818

46,379

62,884
1,446,978

Other business deductions.................................

63,967,002

1,669,232

95,935

769,365

240,914

*47,842

515,176

Home office business deductions.......................

5,500,490

19,802

--

4,920

*7,376

*2,216

5,290

6,004

Depreciation, Form 8829..................................

619,668

1,865

--

*498

*842

*355

*170

1,165

Casualty loss, Form 8829................................

11,275

--

--

--

--

--

--

--

Excess--casualty losses and depreciations,
Form 8829.....................................................

80,226

*62

--

*11

--

--

*51

*12

Net income 1,2 ........................................................
Returns with Schedule C-EZ:

269,089,168

1,978,910

165,902

456,053

552,054

*49,378

755,523

1,720,321

Number of returns...............................................

2,958,957

28,524

*2,837

*1,887

*5,850

*943

17,006

21,603

Business receipts................................................

17,939,050

123,657

*3,404

*16,412

*35,715

*9,717

58,408

75,829

Business deductions...........................................

1,481,143

7,122

*37

*2,189

*715

--

4,181

16,917

Net income..........................................................

16,457,907

116,535

*3,367

*14,223

*35,000

*9,717

54,227

58,913

Footnotes at end of table.

26

Sole Proprietorship Returns, 2003

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors
Classified with the North American Industry Classification System--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Mining--continued

Oil
Net income status, item

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Construction

Total

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH AND
WITHOUT NET INCOME
Number of returns ¹..............................................

103,554

2,420

*2,014

5,377

13,992

9,528

2,491,243

Business receipts, total ¹.....................................

6,008,778

*247,100

*32,214

722,173

1,123,150

241,921

175,820,397

Income from sales and operations ¹....................

5,725,432

*243,487

*32,214

718,706

1,055,148

241,576

174,607,481

Other business income.......................................

283,346

*3,613

--

*3,467

*68,003

*345

1,212,916

..............................

5,351,625

258,197

*36,509

677,752

938,892

226,603

146,916,810

Cost of sales and operations, total......................

915,554

*139,495

*4,347

187,313

368,990

*30,424

76,720,899

Inventory, beginning of year.............................

77,935

*9,450

--

49,127

*33,871

*524

3,354,379

Cost of labor.....................................................

26,053

*19,914

--

*78,505

*1,552

--

15,496,193

Purchases........................................................

159,595

*33,500

--

63,364

177,214

*4,537

22,082,747

Materials and supplies.....................................

13,078

*114

*4,137

*12,770

*183,099

*25,247

27,594,802

Other costs.......................................................

738,024

*81,088

*210

26,912

*6,154

*570

12,190,908

Inventory, end of year......................................

99,131

*4,571

--

43,364

*32,900

*454

3,998,129

Advertising expenses..........................................

19,527

*243

*21

2,683

5,537

*397

952,238

Car and truck expenses......................................

148,442

*4,026

*2,921

25,276

39,444

*56,341

10,231,799

Business deductions, total

1,2

Commissions.......................................................

5,270

*174

*39

*1,352

*21

*291

925,979

Contract labor.....................................................

67,730

*2,875

*1,308

*10,516

*50,946

*11,642

6,127,572

Depletion.............................................................

554,299

*2,493

--

*8,083

*1,738

*29

26,754

Depreciation........................................................

421,561

*9,476

*1,054

102,206

110,354

33,738

7,259,533

Employee benefit programs................................

4,508

*2,535

*455

*1,259

*1,049

--

309,926

Insurance............................................................

44,027

*3,924

*796

17,715

39,383

4,686

3,841,496

Legal and professional services..........................

94,107

*1,899

*67

7,930

4,159

1,060

751,993

Meals and entertainment deducted.....................

11,410

*15

*2

1,461

8,021

*4,521

434,490

Mortgage interest................................................

18,031

*39

--

*2,830

*3,620

*112

532,750

Other interest paid on business indebtedness....

54,855

*2,291

*120

14,014

10,341

*7,599

775,831

Office expenses..................................................

29,099

*189

*18

2,348

14,439

*3,527

878,719

Pension and profit-sharing plans........................

2,006

*338

*80

*43

*621

--

60,712

Rent paid on machinery and equipment.............

5,546

*2,228

*6,304

20,544

*2,841

*15,676

1,155,155

Rent paid on other business property.................

31,269

*21

*4

4,902

*4,370

*4,147

1,077,222

Repairs................................................................

71,499

*6,779

*3,470

40,981

32,566

3,519

1,633,048

Salaries and wages.............................................

67,283

*15,206

*11,022

71,786

82,914

--

9,552,710

Supplies..............................................................

61,643

*5,176

*1,384

7,831

25,704

*6,085

6,272,211

Taxes paid...........................................................

184,354

*5,821

*1,542

19,708

17,356

489

1,895,813

Travel..................................................................

17,228

*248

*61

3,482

*3,073

*9,314

511,460

Utilities................................................................

49,127

*4,490

*90

13,370

14,584

7,115

2,219,343

Other business deductions.................................

2,453,152

*48,215

*1,404

110,102

92,098

25,386

11,788,849

Home office business deductions.......................

3,182

--

--

*17

*4,723

*505

830,161

Depreciation, Form 8829..................................

286

--

--

*2

*890

--

89,630

Casualty loss, Form 8829................................

--

--

--

--

--

--

*181

Excess--casualty losses and depreciations,
Form 8829.....................................................

*56

--

--

--

--

--

27,844

....................................

658,453

-7,876

*-4,294

44,421

184,259

15,335

28,912,966

......................................................

1,417,691

*12,253

*5,922

69,806

214,650

55,972

32,452,557

Deficit ²................................................................

759,238

*20,129

*10,217

25,385

*30,391

40,637

3,539,591

Net income less deficit
1,2

Net income

1,2

Footnotes at end of table.

27

Sole Proprietorship Returns, 2003

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors
Classified with the North American Industry Classification System--Continued
[All figures are estimates based on samples--money amounts are in thousands of dollars]
Mining--continued

Oil
Net income status, item

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Construction

Total

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH NET INCOME
Number of returns ¹..............................................

78,985

*2,312

*7

4,215

9,207

5,799

2,059,160

Business receipts, total ¹.....................................

4,581,508

*99,928

*32,214

675,151

996,340

169,101

153,962,181

Income from sales and operations ¹....................

4,355,202

*97,780

*32,214

672,715

928,418

168,885

152,894,795

Other business income.......................................

226,306

*2,148

--

*2,436

*67,921

*216

1,067,386

..............................

3,164,074

*90,897

*26,292

605,345

781,690

113,129

121,512,038

Cost of sales and operations, total......................

596,555

*8,351

*4,137

169,620

326,575

*3,352

64,435,672

Inventory, beginning of year.............................

21,198

*6,784

--

*32,567

*28,914

*524

2,374,533

Cost of labor.....................................................

*19,948

--

--

*77,360

--

--

13,119,040

Business deductions, total

28

1,2

Purchases........................................................

99,155

*96

--

53,851

*162,285

*137

18,287,977

Materials and supplies.....................................

1,574

*106

*4,137

*8,452

*158,296

*2,574

24,174,781

Other costs.......................................................

480,281

*1,365

--

25,143

*6,051

*570

9,225,769

Inventory, end of year......................................

25,601

--

--

*27,753

*28,971

*454

2,746,429

Advertising expenses..........................................

9,973

*243

*21

2,327

4,855

*349

723,505

Car and truck expenses......................................

110,420

*4,026

*40

24,396

34,087

*38,515

8,519,315

Commissions.......................................................

3,798

--

*39

*1,351

*6

*98

817,534

Contract labor.....................................................

60,137

*2,751

*1,308

*5,496

*50,925

*9,377

5,327,882

Depletion.............................................................

402,250

*625

--

*7,846

*1,253

--

*23,971

Depreciation........................................................

236,387

*4,216

*861

93,368

59,766

*20,398

5,626,420

Employee benefit programs................................

2,808

*1,886

*455

*1,234

*1,049

--

242,196

Insurance............................................................

35,608

*3,215

*796

16,595

31,953

*181

3,186,556

Legal and professional services..........................

47,649

*1,509

*67

4,951

3,836

*762

571,054

Meals and entertainment deducted.....................

8,452

*1

*2

*1,171

7,910

*3,784

353,582

Mortgage interest................................................

10,779

*39

--

*2,664

*247

*112

406,398

Other interest paid on business indebtedness....

27,461

*755

*120

12,842

5,900

*159

564,990

Office expenses..................................................

15,072

*137

*18

2,219

13,935

*1,656

694,277

Pension and profit-sharing plans........................

1,466

--

*80

--

*621

--

55,351

Rent paid on machinery and equipment.............

1,415

*881

*1,462

8,974

*2,584

*11,097

932,908

Rent paid on other business property.................

19,266

*21

*4

*4,128

*2,993

*2,354

842,995

Repairs................................................................

46,711

*6,686

*3,470

38,152

22,123

*63

1,292,088

Supplies..............................................................

53,588

*5,148

*2

7,179

23,969

*2,491

5,202,441

Salaries and wages.............................................

40,837

*12,275

*11,022

68,375

77,664

--

7,638,173

Taxes paid...........................................................

133,211

*4,690

*835

18,106

14,549

*9

1,543,597

Travel..................................................................

5,972

*175

*61

*2,409

*3,072

*7,314

394,777

Utilities................................................................

34,337

*4,298

*88

12,716

11,445

*1,926

1,772,9

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A3eb97595890597b7. Public record. Not legal advice.