An Analysis of Business Organizational Structure

An Analysis of Business Organizational Structure

and Activity from Tax Data

Tom Petska, Michael Parisi, Kelly Luttrell, Lucy Davitian, and Matt Scoffic

Internal Revenue Service

 Introduction

tion are: corporations, partnerships, and nonfarm sole

proprietorships.

Studies of businesses based on tax and information

returns filed with the Internal Revenue Service (IRS)

have generally focused on the financial activities or behaviors of one or more business legal or organizational

types. The motives for these studies have generally been:

(1) to examine and analyze data on one form of business

over time, or (2) to examine the dynamics of shifting

from one organizational form to another based on various factors, including incentives (or disincentives) in the

Internal Revenue Code (IRC). Studies in IRS’s Statistics

of Income (SOI) Division have most often been the first

type. This approach has contributed to the understanding of the effect of taxation on the business sector, but

has not taken into consideration the dynamic and “zero

sum” dimensions of business activity--that businesses

conduct profit-seeking activities in a variety of legal

modes, and that they examine various alternative forms

of organizational structure to optimize growth and aftertax profits. The SOI Integrated Business Database (IBD)

is being developed to provide evidence that businesses

do, in fact, pursue optimal organizational structures. This

initiative is an extension of earlier work in SOI, expanded

to include Tax Years 1980-2002, incorporating the latest

years for which complete SOI data are available. 1- 8

Corporations--Corporations, in this analysis, are

subdivided into those taxed at corporate rates (taxable or

C corporations), and those electing to be taxed through

their shareholders at individual income tax rates. The

latter group includes Subchapter S corporations (or simply S corporations), Regulated Investment Companies

(RICs), and Real Estate Investment Trusts (REITs), all

of which are not taxed at the enterprise level but whose

income similarly flows through to their owners, where it

is subject to tax. C or taxable corporate income is generally taxed directly at the business level, then again at

the shareholder level, at the applicable rates on dividend

income. However, certain provisions in the Federal

tax code lessen this effect. First, the corporate income

potentially taxable at the shareholder level excludes the

taxes paid by the corporation; so, income distributed to

corporate shareholders is only taxable on the after-tax

profits earned by the corporation. Second, the after-tax

income of the corporation is not taxable at the shareholder level until it is paid out in dividends or until the

shareholder realizes capital gains by selling shares that

appreciated in value.

Subchapter S corporations are usually small, closely

held corporations that are not taxed directly. With some

exceptions, their incomes are subject to tax only at the

owner level, much like the flowthrough treatment of

partnerships. Owners of S corporations report their pro

rata shares of income or loss on their own tax returns.

Although S corporations have attractive features, they do

face restrictions, including limitations on the number and

type of shareholders and on the classes of stock permitted, and prohibition of foreign or corporate ownership.

Similar to S corporations, the profits of RICs and REITs

are not taxed at the enterprise level but flow through to

their owners, where they are subject to tax.

This paper is divided into four sections. The first

section briefly provides background information on the

tax treatment of business income. The second section

briefly summarizes major tax law changes that affected

the taxation of business income in the period 1980-2002.

The third section presents and analyzes data from annual

SOI cross-sectional business studies, and the final section

notes some conclusions and plans for future research.

 Taxation of Business Income

The tax treatment of the many organizational forms

is complicated and varies considerably; so, only brief

summaries of Federal taxation of business income are

provided. The major legal forms of economic organiza-

Partnerships--Like an S corporation, a partnership

serves as a conduit between a business and its owners,

--

Petska, Parisi, Luttrell, Davitian, and Scoffic

in this case, its partners. The partnership entity is thus

not taxed directly. Each partnership files an annual information return, which includes an income statement,

balance sheet (in most cases), and a schedule of allocations or distributions made to each partner. Partners are

predominately, though not exclusively, individuals who

report their allocated shares of income and expenses

on their own tax returns. Partnerships may be general

partnerships, limited partnerships, or limited liability

companies (LLCs). General partnerships, and general

partners as well, face personal liability limited only by

their personal resources and the applicable bankruptcy

laws. Limited partners are more like corporate shareholders, with liability limited to the amount invested

and with no active participation in management of the

business.

Summary--While it is generally presumed that all

corporate income is subject to double taxation, at both

the entity and shareholder levels, the profits of S corporations, RICs, and REITs are all untaxed at the entity

level and flow through to the owners or shareholders,

similar to the treatment for partnerships. As a result,

in the third section of the paper, we examine profits for

each organizational type and subsequently aggregate

data from all entities with flowthrough characteristics

(including proprietorships) and compare them to C

corporations that are taxed directly and whose incomes

are potentially subject to double taxation.

 Tax Law Changes

A relative newcomer among for-profit businesses

is the limited liability company, or LLC. These entities

have the limited liability of corporations, but are taxed

in the partnership model--income and expenses flow

through the LLC to the owners, who are taxed on their

pro rata shares. Unlike S corporations, however, LLCs

do not have the extensive restrictions on the number

and composition of owners. LLCs report their financial

activities on their applicable business tax forms, most

commonly the partnership information return (Form

1065), and indicate that they are filing as an LLC. The

SOI partnership program began identifying these entities

for Tax Year 1993. To provide some perspective on their

prevalence and the scope of their financial activities,

summary data on partnership LLCs are included in the

next section.

The Tax Reform Act of 1986 (TRA86), the most

comprehensive revision of the Internal Revenue Code

since 1954, had a major impact on business decisions in

the period after 1986 through broadening of the tax base

of both individuals and corporations, tightening the corporation “alternative minimum tax,” limiting losses from

passive activities, and repealing the long-term capital

gain exclusion. The most marked effect has been on the

changes made to the individual and corporate marginal

tax rates. In pre-TRA86, the highest individual rate

(50 percent) exceeded the highest corporation rate (46

percent) by 4 percentage points. TRA86 reversed this

trend, starting in 1987 and continuing with the phase-in

of lowered rates in 1988-1990 of 34 percent for corporations and 28 percent for individuals. However, for 1991

and 1992, this difference between the corporate and

individual marginal rates was cut in half when the top

rate for the latter was increased to 31 percent.

Sole proprietorships--The profits of nonfarm sole

proprietorships are taxed only at the personal (i.e.,

owner) level. The income statement of sole proprietorships, which summarizes the income and expenses of

the business, is completed on Schedule C (or C-EZ)

of the owner’s individual income tax return. The net

income or loss from the business is added to personal

income from all other sources and taxed at the applicable

individual income tax rates. In effect, the proprietorship

also acts as a conduit through which the income of the

business is passed through to the business owner where

it is subject to tax.

Beginning for Tax Year 1993, the top individual rate

increased to 39.6 percent, surpassing the rate of 35 percent for the highest corporation incomes, and restoring

the pre-TRA relationship where the highest individual

rate exceeded the top corporate rate. In fact, the difference of 4.6 percentage points between the individual

rate and the corporation rate is similar to the pre-TRA86

difference of 4 percentage points, providing a reversal

of the post-TRA incentive to switch to business types

taxed solely at the individual level. However, this incentive declined with the lowering of top individual rates

beginning for 2001.

- 10 -

An Analysis of Business Organizational Structure and Activity from Tax Data

The Small Business Job Protection Act of 1996

(SBJPA) made several noteworthy changes that affected S corporation filings. First, the Act increased

the maximum number of shareholders from 35 to 75.

Second, it enabled financial institutions that did not use

the reserve method of accounting for bad debts to make

an S election. Third, small business trusts electing to

be S corporations were permitted to be shareholders in

an S corporation. Finally, restrictions on the percentage of another corporation’s stock that an S corporation

might hold were eliminated, enabling S corporations to

make an election to treat the assets, liabilities, income,

deductions, and credits of wholly owned subsidiaries as

those of the parent S corporation.

Even though the SBJPA eased restrictions on S

corporations, the number of S corporation entities has

not grown as rapidly as partnership limited liability

companies (LLCs). The IRS ruled in late 1988 (Revenue Ruling 88-76, 1988-2 C.B.360) that any Wyoming

LLC would be treated as a partnership, and the door was

opened for other States to consider LLC legislation. By

1993, 36 States allowed LLCs as a legal entity, and that

number grew to 46 States plus the District of Columbia

a year later. By 1997, all 50 States and the District of

Columbia had enacted LLC legislation. The “checkthe-box” regulations, implemented by IRS in January

1997, relaxed the requirements for LLCs to obtain a

favorable partnership tax classification, leading to a

wider acceptance of LLCs.

 Analysis of Business Data

The SOI Integrated Business Dataset (IBD) has

been compiled at the table level from the annual SOI

cross-sectional studies of corporations (C and S corporations), partnerships, and nonfarm sole proprietorships for

1980-2002.9 Data from these annual statistical studies

are generally publicly available and are published in a

variety of SOI reports. (See the References section.)

They represent weighted estimates of U.S. totals by year

for each legal form or organizational type. The database

combines data from these types of organizations for a

22-year period to enable examination of changes in business composition. The IBD is composed of 3 subsets; (1)

selected financial data on businesses for all industries

for 1980-2002 (Table 1); (2) selected financial data by

- 11 -

size of business receipts for 1998-2002 (Tables 2A-2E);

and selected financial data on businesses for 21 North

American Industrial Classification System (NAICS)

sectors for 1998-2002 (Tables 3A-3E). Although some

of the data in the IBD have already been published, this

is the first time that they have been compiled for this

duration, and work on analysis of significant trends and

findings is just beginning. 10

This section is divided into three parts. First, summary data by organizational type for 1980-2002 are

presented and analyzed. In the next two subsections,

trends in the data between 1998 and 2002 by receipt size

and industrial sector are examined. The period for the

industry data has been restricted since, beginning with

1998, all SOI business studies adopted the new NAICS

industrial classification system. Previously, SOI business studies, and most economic statistics produced by

Federal agencies, used an industry coding system based

on the Standard Industrial Classification (SIC) System.

Although NAICS has substantially improved coverage

on newer, emerging industries, there is a major discontinuity between 1997 and 1998, and, for some industries,

it is difficult or even impossible to derive a consistent

time series.

 Data for All Industries, 1980-2002

The all-industry data compiled and discussed in this

section include: the number of entities, total and business receipts, net income (less deficit), net income, and

deficit. Although this is limited financial detail, these data

comprise a consistent time series for the 22-year period

for all types of businesses. Table 1 presents these data

in its most detailed format, while Figures A-G highlight

some of the most significant trends.11

Number of Business Entities--The number of

businesses doubled between 1980 and 2002, from 13

million in 1980 to over 26 million in 2002. Overall,

the growth was relatively steady, with increases in all

years, including even those with declines in real GDP

(1980-1982, 1990-1991, and 2000-2001). However,

unlike the steady overall growth in the number of entities, the composition of businesses by organizational

type varied considerably. Figure A shows the percent-

Petska, Parisi, Luttrell, Davitian, and Scoffic

age composition in the number of business entities for

C corporations, S corporations, partnerships, and sole

proprietorships.

of business entities in 1980, but their share increased

substantially, particularly in the period following the

1986 Tax Reform, to 11.9 percent in 2002. Partnerships

were also a relatively stable portion of the business entity

types, declining modestly from 10.6 percent in 1980 to

8.5 percent in 2002. While the number of partnerships

increased between 1980 and 1988, their proportion of

the overall number of business entities declined, mainly

due to the higher growth rates of S corporations and

proprietorships.

Sole proprietorships were the largest and most

stable component of business entities, accounting for

between 68.6 percent and 74.5 percent of overall business entities in all years and growing by 3 percentage

points in the 22-year period, from 68.6 percent in 1980

to 71.6 percent in 2002. C corporations, on the other

hand, accounted for 16.6 percent of business entities in

1980, but their percentage fell steadily to 8.0 percent

in 2002. S corporations accounted for only 4.2 percent

Figure B presents annualized growth rates in the

number of business entities with some additional detail

Figure A--Composition of the Number of Businesses, Tax Years 1980-2002

100%

80%

60%

40%

20%

0%

1980

1982

C Corps

1984

1986

1988

S Corps

1990 1992 1994 1996

Tax Year

Partnerships

- 12 -

1998

2000

Sole Props

2002

An Analysis of Business Organizational Structure and Activity from Tax Data

by business organizational type.12 Overall, the number of

businesses increased at a 3.2-percent annual rate for the

22-year period, but this percentage varied by business

type. Although the total number of corporations showed

an annual 3.0-percent increase, this was composed of

a -0.1-percent annual decline for C corporations and a

robust 8.0-percent annual increase by S corporations.

C corporations had 2-percent annual increases in 19801987 and 1993-1997 but declines in both 1987-1993

and 1997-2002. S corporations increased in all periods,

though the annual rate of increase declined steadily from

10.4 percent in the 1980-1987 period, to 6.4 percent for

1993-1997, and 5.0 percent for 1997-2002. Partnerships

had an overall 2.2-percent growth rate for the 22-year

period but declined in number between 1987-1993 before

restoring growth between 4 percent to 5 percent for the

later periods. Complete data for all types of partnerships

are unavailable for years prior to 1993 but indicate a

clear pattern between 1993 and 2002. In these years,

general partnerships declined in number at an increasing

rate, while limited partnerships grew at increasing rates.

However, these data are dominated by the 75.1-increase

for LLC’s in the 1993-1997 period, which slowed

considerably but still grew at a robust 19.9 percent for

1997-2002. As noted, sole proprietorships were the most

stable entity type with an overall rate of growth of 3.4

percent, which was comprised of an annual growth rate

of 5.5 percent for 1980-1987 that steadily declined to

1.9 percent for 1997-2002.

Since most types of business income are essentially

taxed at the individual level, a total for all business types

other than C corporations was computed and is also

shown in Figure B. This aggregation includes the data

for 1120-RICs, 1120-REITs, S corporations, all types of

partnerships, and sole proprietorships--essentially, all

business organizational forms except for C corporations.

Since proprietorships dominate the statistics on the number of business entities and were also a relatively stable

component, it is not surprising that the growth pattern

for the aggregation of businesses less C corporations

mirrored that of proprietorships. These entities grew

at an annual rate of 3.7 percent for the entire period, and

the rate of growth steadily declined from 5.4 percent for

the earliest period (1980-1987) to a low of 2.6 percent

for 1997-2002. However, they avoided the reductions

Figure B--Annual Growth Rates for the Number of Businesses, Tax Years 1980-2002

Annual Growth Rates (Percent)

Form of business

Tax Years

Total

interval,

1980 to 1987

1987 to 1993

1993 to 1997

1997 to 2002

(1)

(2)

(3)

(4)

(5)

All business types...............................

3.2

4.9

2.5

2.6

2.2

Corporations........................................

3.0

4.1

1.6

4.3

2.2

C corporations............................

-0.1

2.0

-3.1

2.2

-1.4

1120-RIC and 1120-REIT............

9.0

11.5

10.6

7.8

4.4

S corporations............................

8.0

10.4

8.7

6.4

5.0

1980 to 2002

Partnerships........................................

2.2

2.5

-1.9

4.5

4.9

General........................................

(¹)

(¹)

(¹)

-2.1

-5.0

Limited........................................

(¹)

(¹)

(¹)

4.3

6.5

LLC..............................................

(¹)

(¹)

(¹)

75.1

19.9

Sole proprietorships...........................

3.4

5.5

3.2

2.0

1.9

Total less C corporations...................

3.7

5.4

3.2

2.7

2.6

- 13 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

in numbers that C corporations had in both 1987-1993

and 1997-2002.

Business Receipts--Unlike data on the numbers

of business entities, the business receipts data include

double counting, since intercompany sales and purchases

are included. However, they are still an important metric

of business activity by organizational type. Data on the

composition and growth of business receipts by type of

entity are presented in Figures C and D, respectively. C

corporations dominated business receipts for the 22-year

period, although their share has declined throughout

the period from a high of 87.5 percent for 1981 to 64.9

percent for 2002.

So, where did this share of C corporation business

receipts go? First, S corporations increased their share of

receipts from about 3 percent for the 1980-1982 period

to 18.5 percent for 2002. Although the rate of growth

was steady for most years, between 1986 and 1987, the

S corporation share jumped from 5.5 percent to 10.1

percent in this one year, with enactment of the 1986 Tax

Reform Act, which lowered the top marginal rate on business income taxed at the individual rate in comparison to

the top marginal tax rate on corporate profits. Although

the share of business receipts accruing to proprietorships

declined from 6.4 percent to 5.0 percent in the period,

the share of partnerships grew from 3 percent - 4 percent

in the earliest years to 11.6 percent for 2002.

As shown in Figure D, overall business receipts grew

at an annual rate of 5.3 percent over the 22-year period,

peaking at 7.5 percent for 1993-1997.12 Similarly, corporation receipts grew at a 5.0-percent annual rate for the

entire period and also peaked in the 1993-1997 period at

7.1 percent. Although C corporations held the dominant

share of receipts, receipts of S corporations grew at a

13.3-percent rate throughout the period, peaking at 21.9

Figure C--Composition of Business Receipts, Tax Years 1980-2002

100%

80%

60%

40%

20%

0%

1980

1982

1984

C Corps

1986

1988

S Corps

1990

1992

Tax Year

1994

Partnerships

- 14 -

1996

1998

Sole Props

2000

2002

An Analysis of Business Organizational Structure and Activity from Tax Data

Figure D--Annual Growth Rates for Business Receipts, Tax Years 1980-2002

Annual Growth Rates (Percent)

Form of business

Tax Years

Total

interval,

1980 to 1987

1987 to 1993

1993 to 1997

1997 to 2002

(1)

(2)

(3)

(4)

(5)

All business types...............................

5.3

5.5

4.3

7.5

4.6

Corporations........................................

5.0

5.5

4.3

7.1

3.6

C corporations............................

4.0

4.3

2.9

6.7

2.9

1980 to 2002

S corporations............................

13.3

21.9

12.1

9.2

6.0

Partnerships........................................

9.9

6.0

5.2

17.8

15.0

General........................................

(¹)

(¹)

(¹)

6.4

0.7

Limited........................................

(¹)

(¹)

(¹)

18.1

15.7

LLC..............................................

(¹)

(¹)

(¹)

90.7

26.7

Sole proprietorships...........................

4.2

5.7

3.6

3.5

3.4

Total less C corporations...................

9.6

11.4

8.5

9.7

8.1

¹ Data not available for all years.

percent between 1980-1987 before steadily declining.

Partnerships had an overall 9.9-percent rate of growth

in business receipts for the 22-year period, which was

led by increases of 17.8 percent and 15.0 percent during

the 1993-1997 and 1997-2002 periods, respectively. As

for the entity data, the growth in partnership data was

led by the increases for LLC’s, which had 90.7-percent

and 26.7-percent annual growth rates for the periods

1993-1997 and 1997-2002, respectively. Proprietorships exhibited the most stable growth, with an overall

rate of 4.2 percent, which started at 5.7 percent in the

1980-1987 period and declined steadily to 3.4 percent

in the latest years. Unlike for the number of entities,

proprietorships do not dominate the receipts data; so, the

pattern for the total excluding C corporations was much

more like those for S corporations and partnerships,

with 9.6-percent growth throughout, ranging from 11.4

percent in the earliest period and staying above 8 percent

for all later periods.

Net Income (Less Deficit)--Figures E and F show

data on the composition and growth of net income (less

deficit), respectively.13 Overall, as for business receipts,

data for net income (less deficit) show the dominance of

C corporations, although their share of the total declined

precipitously, plummeting from 80 percent for 1980-

1981 to 39.1 percent for 2002. This is a very significant

turn of events since revenue from the corporation income

tax has been a significant component of overall tax collections.14 This phenomenon is even more noteworthy

considering the relative stability of corporate statutory

tax rates in the post-TRA period.

Once again, profits of proprietorships were the most

stable of any entity type, increasing from 18.2 percent for

1980 to 20.9 percent for 2002; however, the proprietorship share had increased to 25.6 percent for 1982 and

stayed above 20 percent through 1994 before bottoming

out in 1997. The flowthrough entities, S corporations and

partnerships, together accounted for less than 2 percent

of net income (less deficit) for 1981-1986, partly because

partnerships had losses in all of these years. However,

beginning with 1987, their combined net income (less

deficit) grew rapidly from about 4 percent for 1987 to

nearly 40 percent for 2002, a tenfold increase in just

15 years.

Concerning the growth rates for net income (less

deficit), overall business had profits increasing at increasing rates in all of the pre-1997 periods before falling at a

3.7-percent annual rate in the 1997-2002 period, largely

due to corporate profit declines in the 2001-2002 eco-

- 15 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Figure E--Composition of Business Net Income (Less Deficit), Tax Years 1980-2002

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

-10%

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

Tax Year

C Corps

S Corps

Partnerships

nomic downturn.12 C corporation profits had a similar,

though more prominent trend, with steady increases

peaking at 12.5 percent for the 1993-1997 period before

falling at an annual 17.1-percent rate for 1997-2002.

The flowthrough entities, S corporations and partnerships, both had substantial growth in profitability, with

overall 19.5-percent and 15.9-percent annual rates of

growth throughout the 22-year period, respectively. S

corporation profits increased at over 32 percent for the

1980-1987 period and stayed in the double-digit range,

until dropping to a modest 3.6-percent rate of increase

for 1997-2002. Partnership had overall losses from

1981 through 1987, became profitable in 1988, and then

had increases of over a 20-percent level for 1993-1997,

before dropping to 9.5 percent for 1997-2002.

Once again, proprietorships were the most stable

component experiencing overall growth in profits of

Sole Props

6.3 percent for the entire period, with growth of 9.3

percent for 1980-1987 that steadily declined to 3.4 percent for the 1997-2002 period. For entities excluding

C corporations, profitability growth patterns mirrored

a combination of the rapid profit growth in the earlier

periods of the flowthrough entities with the greater stability of proprietorships. Overall, profit growth was 11.5

percent for the entire 22-year period, with double-digit

growth through 1997 before declining to 3.3 percent for

1997-2002.15

Deficits--Information on business losses or deficits

is shown in Figures G and H for all entity types. C

corporation losses ranged from about 48 percent to just

under 63 percent for the entire period, substantially lower

than the percentages for receipts and profits. The only

years that C corporation losses exceeded 60 percent of

the total were for the last 3 years, 2000-2002, a period

- 16 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Figure F--Annual Growth Rates for Business Net Income (Less Deficit), Tax Years 1980-2002

Annual Growth Rates (Percent)

Tax Years

Total

Form of business

interval,

1980 to 1987

1987 to 1993

1993 to 1997

1997 to 2002

(1)

(2)

(3)

(4)

(5)

All business types...............................

5.8

5.8

8.0

14.5

-3.7

Corporations........................................

4.2

4.5

7.4

15.7

-9.4

C corporations............................

0.4

0.8

6.4

12.5

-17.1

1120-RIC and 1120-REIT............

10.7

18.4

5.7

24.0

-4.8

1980 to 2002

S corporations............................

19.5

32.3

16.8

20.9

3.6

Partnerships........................................

15.9

(²)

(²)

23.1

9.5

General........................................

(¹)

(¹)

(¹)

11.8

2.7

Limited........................................

(¹)

(¹)

(¹)

42.8

13.1

LLC..............................................

(¹)

(¹)

(¹)

104.3

20.9

Sole proprietorships...........................

6.3

9.3

6.6

4.4

3.4

Total less C corporations...................

11.5

11.7

14.9

16.5

3.3

¹ Data not available for all years.

² Value not computed due to negative values.

Figure G--Composition of Business Losses, Tax Years 1980-2002

100%

80%

60%

40%

20%

0%

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

Tax Year

C Corps

S Corps

Partnerships

- 17 -

Sole Props

2000

2002

Petska, Parisi, Luttrell, Davitian, and Scoffic

Figure H--Annual Growth Rates for Business Losses, Tax Years 1980-2002

Annual Growth Rates (Percent)

Form of business

Tax Years

Total

interval,

1980 to 1987

1987 to 1993

1993 to 1997

1997 to 2002

(2)

(3)

(4)

(5)

1980 to 2002

(1)

All business types...............................

8.5

8.7

4.2

5.4

15.7

Corporations........................................

9.7

12.3

2.6

5.4

18.0

C corporations............................

9.5

11.4

1.5

5.4

19.4

1120-RIC and 1120-REIT............

23.6

15.0

29.7

15.8

34.5

S corporations............................

11.0

18.9

7.3

4.7

9.6

Partnerships........................................

6.9

13.3

-4.6

7.1

11.7

General........................................

(¹)

(¹)

(¹)

-4.6

-0.2

Limited........................................

(¹)

(¹)

(¹)

3.6

4.3

LLC..............................................

(¹)

(¹)

(¹)

83.7

26.7

Sole proprietorships...........................

4.6

4.8

4.2

0.3

8.4

Total less C corporations...................

7.3

5.6

7.4

5.4

11.1

¹ Data not available for all years.

that included three quarters of decline in real GDP. Other

recessionary periods seemed to have had less effect on

the C corporation share of losses. S corporation losses

grew starting after 1980, peaking in 1995 at 14.6 percent,

before beginning a steady decline to around 9 percent

for 2001 and 2002.

Interestingly, partnerships have had a substantial

share of deficits throughout the 22-year period, growing

from the mid-30 percents in the pre-TRA period, peaking at 47 percent for 1987 and 1988, before beginning a

gradual decline to the low 20-percent range in the 20002002 period. Clearly, the TRA passive loss limitations

had an effect. Proprietorships once again held a stable

but small share of losses, which peaked for 1980, and

gradually declined throughout the period to about 5

percent for the 2000-2002 period.

From a growth perspective, overall losses, which

increased at nearly 9 percent in the 1980-1987 period,

declined to around 5 percent from 1987-1997, then

jumped to over 15 percent in the 1997-2002 period.12

C corporations had a similar pattern, though growth in

deficits was larger in periods of large deficit growth and

smaller in periods when deficits grew at slower rates, im-

plying more stability for the other types of entities. For

businesses other than C corporations, losses averaged 7.3

percent over the entire period, ranging between 5 percent

and 7 percent during 1980-1997 before increasing to

11.1 percent for the 1997-2002 period. S corporations

had an 18.9-percent increase for 1980-1987, but the

growth in losses dropped for 1987-1993 and again for

1997-1997 before increasing to nearly a 10-percent rate

for 1997-2002. For partnerships, losses increased in all

periods, with the exception of the 1987-1993 period,

where the post-TRA passive loss limitations disallowed

an increasing share of partnership losses to offset other

(positive) income.

 Data by Size of Business Receipts,

1998-2002

In this section, we focus on business activity during the period of 1998 through 2002 by size of business

receipts. As noted, selected financial data by size of

business receipts for 1998-2002 are included in Tables

2A-2E. 11 When the data are segmented by size of business receipts, some notable characteristics of business

composition are apparent. Composition percentages on

the number of businesses by size of business receipts

- 18 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Figure I--Composition of Number of Businesses by Size of Business Receipts, Tax

Year 2002

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

under $25,000

$25,000 under

$250,000

$250,000 under

$1,000,000

$1,000,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000 or

more

Business receipts

C corporations

S corporations

Partnerships

Sole proprietorships

are shown for Tax Year 2002 in Figure I, while business

receipts and net income (less deficit) by size of business

receipts are shown in Figure J.

of entities for all classes between $250,000 and $50 million, and partnerships also have their largest composition

percentages in these midsized receipt classes.

Overall, the numbers of business entities are dominated by small proprietorships, particularly those with

receipts under $1 million. C corporations, on the other

hand, comprise less than 25 percent of business entities

for each size-class under $1 million, but their share grows

from 37 percent to nearly 58 percent with increasingly

larger receipt size-classes. The flowthrough entities, S

corporations and partnerships, show their largest composition shares in the middle receipt size-classes. S

corporations account for between 35 percent-41 percent

From Figure J, and as previously discussed, C corporations dominate activity in business receipts, accounting

for nearly 65 percent of receipts for 2002. However,

their share of receipts is strongly associated with size

of receipts. The smallest C corporations account for

only 2 percent of receipts, but this share grows rapidly

to nearly 81 percent for businesses with $50 million or

more in business receipts. As with data on the numbers

of entities, the flowthrough businesses show their largest

composition shares in the middle size-classes, with their

- 19 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Figure J--Business Receipts and Net Income (Less Deficit) by Size of Business Receipts, Tax Year 2002

[Money amounts are in billions of dollars]

Business Receipts

Income item and

type of business

under

Total

(1)

$25,000

$25,000

$250,000

$1,000,000

$5,000,000

under

$10,000,000 $50,000,000

under

under

under

$250,000

$1,000,000

$5,000,000

under

(2)

(3)

(4)

(5)

(6)

(7)

(8)

94.6

641.8

1,070.8

1,876.7

908.3

2,311.6

13,837.2

$10,000,000 $50,000,000

or

more

Business receipts:

All businesses.......................... 20,741.0

C corporations..................... 13,455.8

2.3

72.3

275.5

732.0

378.9

930.3

11,064.5

S corporations.....................

3,841.3

3.5

123.1

402.3

775.7

389.1

1,028.6

1,119.0

Partnerships........................

2,414.2

1.7

34.2

97.1

216.4

114.6

325.0

1,625.1

Sole proprietorships............

1,029.7

87.2

412.2

295.8

152.5

25.7

27.7

28.5

Net income (less deficit):

All businesses..........................

1,055.4

-46.2

142.9

97.0

73.2

36.9

117.2

646.9

C corporations.....................

413.0

-19.1

-8.4

-11.2

-10.4

-0.2

21.9

440.6

S corporations.....................

150.6

-8.4

9.4

24.1

33.3

16.3

37.6

38.4

Partnerships........................

270.7

-34.9

13.6

25.1

35.7

19.5

50.8

161.0

Sole proprietorships............

221.1

16.4

128.3

59.0

14.6

1.3

1.0

0.5

largest composition percentages in receipt size-classes

between $250,000 and $50 million. Proprietorships, as

would be expected, comprise the majority of small organizations, accounting for 92 percent of businesses with

receipts under $25,000 but with a rapidly diminishing

share with increases in receipt size. For the largest size

receipt size-class ($50 million or more), proprietorships

comprise only 0.2 percent of the total.

The composition of net income (less deficit) or

profits among receipt sizes also shows some interesting

and well-defined patterns. First, for the under $25,000

receipt size-class, there was an overall $46-billion loss

for all types of businesses, and only proprietorships had

positive net income. Although C corporations accounted

for 39 percent of business profits for 2002, they show

losses in all receipt size-classes below $10 million.

However, C corporations become profitable for sizeclasses over $10 million, and those with receipts above

$50 million earned over $440 billion in profits, nearly 42

percent of the total. S corporations once again show their

largest composition shares in the middle receipt sizeclasses, with composition shares ranging from nearly 25

percent to almost 46 percent for businesses with receipts

between $250,000 and $50 million. Partnerships had

nearly $35 billion in losses for the smallest size-class,

but were profitable for all larger receipt size-classes. For

receipt sizes above $25,000, partnerships had profits of

at least $13 billion and accounted for 22 percent to 55

percent of total profits. Proprietorships, which include

nearly 21 percent of overall profits, are the only business

type with profitability in the under $25,000 receipt sizeclass. Above $25,000, proprietorships show a rapidly

decreasing share of profits, with nearly 90 percent in the

$25,000-$250,000 receipt size-class but only $0.5 billion

and 0.1 percent for the largest class.

 Data by Industrial Sector, 1998-2002

In this section, we focus on specific sectors that

showed significant activity during the period 1998

through 2002. During this timeframe, a number of

national and international events impacted economic

activity, including the end of the uninterrupted GDP

growth of the 1990’s; the technology boom and bust;

the September 11, 2001, attacks; real estate volatility;

- 20 -

An Analysis of Business Organizational Structure and Activity from Tax Data

accounting scandals; and enactment of the Small Business Job Protection Act of 1996. All of these potentially

impacted business activity in specific sectors. As noted,

selected financial data for 21 NAICS sectors for 19982002 are included in Tables 3A-3E and summary data

for eight key sectors are presented in Figures K, L, and

M and discussed below.

Figure K--Number of Entities as Percent of Total by Selected

Sector, Tax Year 2002

Utilities

0.1%

All Other

53.8%

Utilities--As shown in Tables 3A-3E, the number of

business entities in the Utilities sector decreased by 2.1

percent from 17,662 for 1998 to 17,283 for 2002. The

most notable aspect of the decline was the 19.3-percent

decrease in S corporation returns, from 2,124 to 1,715.

The number of C corporations and partnerships classified

as Utilities increased slightly, with only the large decline

in S corporations and a slight decline in proprietorship

Utilities, reducing the total for all businesses. The large

decline in S corporation Utilities was mostly attributable

to the smallest business receipt class, those returns with

less than $25,000 in business receipts.

The Utilities sector experienced a large decline in

net income (less deficit) over the period, most of which

was attributable to the largest receipt size-class for C

corporations. C corporations reporting $50 million or

more in business receipts saw their net income (less

deficit) decline from $30.7 billion for 1998 to a loss of

$95.4 million for 2002. S corporations and partnership

net income (less deficit) increased slightly both overall

and in the largest receipt size-class.

Construction

11.6%

Manufacturing

2.4%

Transportation

and

Warehousing

4.4%

Finance

4.3%

Real

Estate

9.8%

Management of

Companies

0.3%

Professional,

Scientific,

Technical

Services

13.4%

Figure L--Number of Entities as Percent of Total, by Selected

Sector, Tax Year 2002

Construction--The Construction industry accounted

for roughly 12 percent of the total number of business entities. The number of businesses in this sector

increased 4.8 percent over the 5-year period, from 2.9

million to 3.1 million. However, over the 1998–2002

period, the number of C corporations declined from

246,404 to 229,765 (6.8 percent), while the number of

S corporations increased from 305,531 to 418,770 (37.1

percent).

Between 1998 and 2002, businesses showed significant increases in all data items, with the largest increases

in S corporations, partnerships, and proprietorships.

Business receipts of S corporations increased by 46.0

percent, from $391.9 billion to $572.1 billion; those

of partnerships increased by 59.5 percent from $106.3

- 21 -

Utilities

0.1%

Construction

11.6%

Manufacturing

2.4%

Transportation

and

Warehousing

4.4%

Finance

4.3%

Other

53.8%

Real Estate

9.8%

Management of

Companies

0.3%

Professional,

Scientific,

Technical

Services

13.4%

Petska, Parisi, Luttrell, Davitian, and Scoffic

Figure M--Business Receipts as Percent of Total by Selected

Sector, Tax Year 2002

Utilities

3.3%

Construction

6.8%

All Others

45.1%

Management of

Companies

0.9%

Professional,

Scientific,

Technical

Services

4.8%

Manufacturing

25.7%

Finance

8.8%

Transportation

and

Warehousing

3.0%

Real Estate

1.6%

billion to $169.6 billion; and those of proprietorships

increased by 17.0 percent, from $143.9 billion to $168.5

billion. Significant increases were also seen in salaries

and wages of these entities, as well as in depreciation.

Manufacturing--For 1998, 706,002 businesses

classified themselves in the Manufacturing sector. By

2002, the number had dropped to 628,868, a 10.9-percent decrease in business return filers for this sector.

Of the four entity types, all declined in number with

the exception of partnerships, which showed a 10.1percent increase to 38,364. The increase in number of

partnerships did little, however, to alter the distribution

of partnerships among receipt size-classes. For 1998,

47.1 percent of partnerships classified in Manufacturing reported business receipts under $100,000. For

2002, 45.2 percent of manufacturers still fell under this

threshold.

C corporations and sole proprietorships accounted

for most of the decline in the number of manufacturers.

C corporations dropped by 27,141 (16.6 percent), and

proprietorships dropped by 50,935 (14.1 percent). The

distribution of C corporation manufacturers across business receipt classes changed little from 1998 to 2002,

with all classes but one ($100,000 under $250,000)

showing decreases. Despite a decreasing number of

sole proprietorships engaged in manufacturing, the

period 1998–2002 saw growth in the number of large

manufacturing proprietorships, with those reporting

between $5 million and $50 million in business receipts

increasing by 52.6 percent from 116 for 1998 to 177

for 2002. These changes in the manufacturing sector

did little to change the composition of the sector, with

each entity type making up roughly the same share of

all Manufacturing for 1998 as for 2002.

Growth in business receipts for partnerships in

Manufacturing exceeded that of partnerships in all sectors. Partnership business receipts in Manufacturing

grew by 96 percent to $485.0 million between 1998

and 2002. This growth could be traced to partnerships

with $50 million or more in business receipts. For 1998,

73.6 percent, or $182.2 million, of business receipts of

manufacturing partnerships were in the $50 million or

more business receipt size-class, while, for 2002, 81.4

percent, or $394.9 million, were in this class.

Transportation and Warehousing--Growth in the

overall number of business filers in this sector outpaced

the growth of all sectors. The number of business entities

classified in Transportation and Warehousing increased

from 969,104 to 1,153,198, an increase of 19.0 percent.

The number of each separate entity type increased over

the period 1998–2002, but the largest percentage increases were seen in partnerships, S corporations, and

proprietorships. Partnerships increased by 35.5 percent,

or 6,814 returns; S corporations by 21.3 percent, or

17,290 returns; and proprietorships by 20.1 percent, or

159,181 returns. Although C corporations did show positive growth, their numbers increased by only 1 percent,

from 78,342 for 1998 to 79,150 for 2002.

Well over half of all growth in Transportation and

Warehousing partnerships can be traced to the smallest

two receipt size-classes. The number of partnerships

reporting $100,000 or less in business receipts accounted

for 59.5 percent, or 4,051, of new partnership returns in

this sector. Sole proprietorships showed increases in all

receipt size-classes, but growth was concentrated on the

- 22 -

An Analysis of Business Organizational Structure and Activity from Tax Data

lower end, with 99.3 percent, or 157,999, of new returns

reporting less than $250,000 in business receipts. S

corporation growth was more evenly distributed among

the various receipt size-classes. As with Manufacturing,

the composition of the Transportation and Warehousing sector changed little. Of the 5 years studied, each

entity’s share of this sector remained relatively constant.

Business receipts increased 13.6 percent to $617.9 billion across all entities, while net income (less deficit)

decreased 91.9 percent to $2.5 billion over this period.

Both C corporations and S corporations were responsible

for the decrease in net income (less deficit).

Finance and Insurance--C corporations represent

the majority of business income for the Finance and Insurance sector, while all other business entities combined

represent 88.8 percent of all businesses in the sector. The

number of C corporations declined over the period 19982002 by 12.0 percent, from 115,309 to 101,495. This

decline was particularly noticeable in the smallest receipt

size-classes. C corporations reporting less than $25,000

in business receipts declined from 30,440 to 22,464.

Partnerships reported the largest increase in number of

businesses from 209,150 for 1998 to 263,024 for 2002, or

25.8 percent. Growth in the number of partnerships was

also concentrated in smaller receipt size-classes, with the

number of returns reporting less than $25,000 in business

receipts, increasing from 152,559 to 176,425.

Although net income (less deficit) for the Finance

and Insurance sector declined from 1998 to 2002, partnerships were an exception. Net income (less deficit)

for partnerships in this sector increased by 41.1 percent,

from $63.3 billion to $89.3 billion. However, partnership

net income (less deficit) represented only 25.2 percent

of the $354.8 billion in net income (less deficit) for all

entity types for 2002.

Real Estate--The overall number of business entities

in Real Estate increased 17.2 percent to 2,585,914 between 1998 and 2002. With this increase in the number of

entities, there was also an increase of business receipts,

which increased by 25.3 percent to $326.4 billion. For

all businesses, interest paid increased until 2002, when

the overall interest paid declined by 26.0 percent from

2001 to $19.6 billion.

The number of partnerships in Real Estate grew by

23.1 percent to 999,786 entities during the period 1998

through 2002, faster than any other entity type. Partnerships also displayed the largest amount of net income

(less deficit) ($55 billion) for the same time period,

representing 68.0 percent of net income (less deficit)

for all business entities. This growth could be traced

to the $5 million to under $10 million class of business

receipts, where net income (less deficit) increased from

$4.1 billion to $8.0 billion, a 95.5-percent increase. C

corporations were the only entity type in Real Estate

to experience a decline in numbers. C corporation net

income (less deficit) declined for the period 1998-2002,

decreasing from $4.9 billion in 1998 to almost -$0.9

billion in 2002. Nearly all this decline was found in the

C corporations reporting business receipts with $50.0

million or more.

Professional, Scientific, and Technical Services-Overall, the number of businesses in the Professional,

Scientific, and Technical Services sector showed a 12percent increase, from 3.2 million for 1998 to 3.6 million for 2002. The increase was due to a 29.4-percent

increase in S corporations, from 371,152 to 480,120,

and a 9.9-percent increase for proprietorships, from 2.4

million to 2.7 million. Most of the growth for both S corporations and proprietorships could be traced to smaller

receipt size-classes rather than to a single class.

For 2001, partnerships surpassed proprietorships

as the leader in net income (less deficit), accounting

for $49.9 billion of the nearly $93.2 billion reported

for all business entities. Beginning for 1999, total net

income (less deficit) for C corporations decreased to a

$4.5-billion loss and has remained negative for each

year through 2002 when C corporations reported -$19.7

billion. Despite this decline, C corporations continued

to show the largest total receipts, business receipts, and

total business deductions for this sector.

Since 1999, all entities excluding C corporations

have displayed positive amounts for the total net income

(less deficit), while C corporations displayed negative

amounts for total net income (less deficit) during the

same time period. Entities other than C corporations

represented over 50 percent of all total receipts and

business receipts for all business entities.

- 23 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Management of Companies--The number of business entities in the Management of Companies (holding

companies) sector increased 55.7 percent over the period

1998-2002, from 42,918 to 66,826 entities. However,

one entity type, proprietorships, is not represented in this

sector. S corporations displayed the largest percentage

increase in number of businesses for this industry, 89.9

percent, an increase from 11,471 for 1998 to 21,779 for

2002. The largest increases were in smaller receipt sizeclasses, i.e., entities with business receipts under $25,000

grew from 9,460 entities to 17,729 entities. This growth

of S corporations can be attributed partly to the Small

Business Job Protection Act of 1996, which permitted financial institutions that use the specific chargeoff method

of Section 166 to account for the writeoff of bad debts

to elect Subchapter S status. This provision has also led

to a significant increase in the number of bank holding

companies, which are also included in this sector.

Cost of goods sold for all Management of Companies

more than tripled over the 5-year period of 1998-2002.

C corporations nearly tripled their cost of goods sold for

this period with an increase of $7.2 billion, from nearly

$3.8 billion for 1998 to $11.1 billion for 2002. Almost all

of this growth was concentrated in C corporations with

$50 million or more in business receipts. C corporations

in this class alone saw cost of goods sold rise from $3.5

billion for 1998 to $10.9 billion for 2002. Partnerships

accounted for the largest percentage increase for cost

of goods sold during this 5-year span, increasing 576.9

percent, to $6.5 billion.

 Conclusions and Plans for Future

Research

The most significant findings for the 22-year period

are the shift in overall business activity away from C corporations to those organizations whose profits are taxed

at the individual level. Overall, the data for net income

(less deficit) show the dominance of C corporations,

although their share of the total declined precipitously,

plummeting from 80 percent for 1980-1981 to 39 percent

for 2002. This is a very significant development since

revenue from the corporation income tax has been a

significant source of overall tax collections. This phenomenon is even more noteworthy considering the relatively stable corporation statutory tax rates, especially

in the post-TRA period. C corporations accounted for

nearly 17 percent of business entities in 1980, but their

percentage fell steadily to 8 percent in 2002. Although

C corporations dominated business receipts, their share

likewise declined throughout the period from a high of

87 percent in 1981 to 65 percent in 2002. Sole proprietorships were the largest and most stable component of

business entities for this period, accounting for between

69 percent and 74 percent of overall business entities in

all years. When the data are classified by size of business

receipts, the largest number of entities fell into the smallest receipt size-class, but the vast majority of business

receipts for most entity types generally accrued to those

in the largest receipt class. C corporations dominated

the receipts data in the largest class, accounting for approximately 80 percent of business receipts and nearly

72 percent of profits.

Although economic events affected different industrial sectors in very different ways, the data showed

a particularly substantial trend in the 1998-2002 period. The data by industrial sector illustrated that the

trend of shifting overall business activity away from C

corporations to those organizations whose profits are

taxed at the individual level was prevalent throughout

all sectors of the economy. The most notable trend by

industrial sector was the rapid growth in the number

of businesses organized as flowthrough entities. In

many industrial sectors, the number of C corporations

grew very slightly or even declined. Across industrial

sectors, almost without exception, S corporations and

partnerships showed rapid growth in number of entities.

S corporations showed large nominal increases, while

partnerships typically grew at the fastest rates. In almost

all sectors, the most notable growth in net income (less

deficit) was also isolated in businesses organized as

flowthrough entities.

Finally, opinions expressed in this paper are those of

the authors and should not be attributed to the Internal

Revenue Service or the U.S. Department of the Treasury

although comments are welcome.

 Endnotes

1

- 24 -

Legel, Ellen; Bennett, Kelly; and Parisi, Michael (2004), The Effects of Tax Reform on the

An Analysis of Business Organizational Structure and Activity from Tax Data

Structure of U.S. Business, 2003 Proceedings of

the American Statistical Association, Section on

Government Statistics.

2

3

4

5

6

Petska, Tom (1998), Taxes and Business Organizational Choice: Deja Vu All Over Again? 1997 Pro‑

ceedings of the American Statistical Association,

Section on Business and Economic Statistics.

Wittman, Susan M. and Gill, Amy, S Corporation

Elections After the Tax Reform Act of 1986, presented at the 1996 Allied Social Science Meetings

and published in Statistics of Income Bulletin,

Spring 1998, Volume 17, Number 4.

Data on financial activity by size of business

receipts by NAICS sectors are included in an

extended version of Tables 2A-2E for this paper

on the SOI Tax Stats Web site at http://www.irs.gov/

taxstats/bustaxstats/article/0,,id=152029,00.html.

11

In Table 1, Regulated Investment Companies

(RIC’s) and Real Estate Investment Trusts (REIT’s), which are not taxed at the enterprise level

but whose income similarly flows through to their

owners, are excluded from C corporations and

shown separately. However, in all other tables and

figures, they are included with C corporations.

12

Annual growth rates were computed as follows:

Nutter, Sarah E.; Young, Jim; and Wilkie, Patrick,

Tax Legislation and Business Form Choice: C

Corporation Behavior Before and After TRA86,

presented at the 1996 Allied Social Science Meetings and published in Statistics of Income Bulletin,

Winter 1995-96, Volume 15, Number 3.

Gt = (lnXt - lnXt-n) 100 / n

where Gt = the annual growth rate in the value of

X between periods t and n,

lnXt = the natural logarithm of the value of X for

period t,

Petska, Tom, Taxes and Organizational Choice: An

Analysis of Trends, 1985-1992, Statistics of Income

Bulletin, Spring 1996, Volume 15, Number 4.

Petska, Tom, Do Taxes Affect Business Legal

Structure? An Analysis of IRS Data, presented at

the 1996 Allied Social Science Meetings.

7

Petska, Tom and Wilson, Robert, Trends in Business Structure and Activity, 1980-1990, Statistics

of Income Bulletin, Spring 1994, Volume 13,

Number 4.

8

Petska, Tom (1994), The Effects of Tax Reform on

the Structure of U.S. Business, 1993 Proceedings

of the American Statistical Association, Section on

Business and Economic Statistics.

9

10

As noted, the Integrated Business Dataset is a

compilation of table level data from SOI crosssectional business studies. Future plans are to

construct a true Integrated Business Database

consisting of microdata from SOI C and S

corporations, partnerships, and nonfarm sole

proprietorships.

lnXt-n = the natural logarithm of the value of X for

period t-n, and

n = the number of years on which the computation

is based.

13

Unlike data in the SOI Corporation Income Tax

Returns and Source Book of Corporation Income

Tax Returns, net income (less deficit) used in this

paper includes the more comprehensive “total net

income” for S corporations. This item includes

trade or business income plus portfolio income,

as well as real estate and rental activity incomes

distributed directly to shareholders.

14

From Table 7 in the IRS 2004 Data Book, for 1980,

the corporation income tax accounted for nearly

14 percent of total Internal Revenue collections.

For 2002, this share had declined to about 10.5

percent.

15

In this paper, we assume that all partnership profits

and losses accrue to individuals. However, from

the Partnership Schedule K, data are available on

distributions by type of partner. For 2002, $156.1

billion, or 54.2 percent, of allocated income was

- 25 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

distributed to nonindividual partners (which

include corporate, partnership, tax-exempt, and

nominees). The SOI Bulletin article, Partnership

Returns, 2002, referenced below, has additional

information.

 References

Internal Revenue Service, Statistics of Income‑‑Cor‑

poration Income Tax Returns, Publication 16,

1980-2002.

Internal Revenue Service, Statistics of Income‑‑In‑

dividual Income Tax Returns, Publication 1304,

1980-2002.

Internal Revenue Service, Statistics of Income--Source

Book of Corporation Income Tax Returns, Publication 1053, 1980-2002.

Internal Revenue Service, Statistics of Income--Spe‑

cial Studies in Federal Tax Statistics, various years.

Luttrell, Kelly, S Corporation Returns, 2002, Statis‑

tics of Income Bulletin, Spring 2005, Volume 24,

Number 4. (See http://www.irs.gov/taxstats/productsandpubs/article/0,,id=130681,00.html for SOI

Bulletin articles and data on additional years.)

Nelson, Susan C., S Corporations: The Record of

Growth After Tax Reform, Journal of S Corpora‑

tion Taxation, Fall 1993, Volume 5, Number 2.

Nelson, Susan, and Petska, Tom (1990), Partnerships,

Passive Losses, and Tax Reform, 1989 Proceed‑

ings of the American Statistical Association, Sec‑

tion on Survey Research Methods.

Pierce, Kevin, Sole Proprietorship Returns, 2003,

Statistics of Income Bulletin, Summer 2005, Volume 25, Number 1. (See http://www.irs.gov/taxstats/productsandpubs/article/0,,id=130681,00.

html for SOI Bulletin articles and data on additional years.)

Petska, Tom, Partnerships, Partners, and Tax Shelters

After Tax Reform, 1987‑1989, Statistics of Income

Bulletin, Summer 1992, Volume 12, Number 1.

Petska, Tom and Nelson, Susan (1991), Partnerships

and Tax Shelters: An Analysis of the Impact of the

1986 Tax Reform, 1990 Proceedings of the Ameri‑

can Statistical Association, Section on Survey

Research Methods.

Plesko, George A., Corporation Taxation and the

Financial Characteristics of Firms, Public Finance

Quarterly, July 1994.

Scholes, Myron S., and Wolfson, Mark A. (1992),

Taxes and Business Strategy: A Planning Approach.

Wheeler, Timothy and Parsons, Maureen, Partnership Returns, 2002, Statistics of Income Bulletin,

Fall 2004, Volume 24, Number 2. (See http://

www.irs.gov/taxstats/productsandpubs/article/

0,,id=130681,00.html for Bulletin articles and data

on additional years.)

- 26 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Table 1.--Number of Businesses, Business Receipts, Net Income, and Deficit, by Form of Business,

Tax Years 1980-2002

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Tax Year

Form of business, item

All Businesses

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

Corporations

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit)( ¹ )...................................

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

Deficit.....................................................................

C Corporations

Number of businesses.....................................

Total receipts...................................................

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

Net income (less deficit) ..................................

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

Deficit...............................................................

1120-RIC and 1120-REIT

Number of businesses.....................................

Total receipts...................................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

S Corporations

Number of businesses.....................................

Total receipts...................................................

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

Total net income (less deficit) ( ² )....................

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

Deficit...............................................................

Partnerships

Number of businesses...........................................

Total receipts ( ³ )...................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

General ( 4 )

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

Limited ( 5 )

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

LLC

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

Nonfarm Sole Proprietorships

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

1980

1981

1982

1983

1984

1985

1986

1987

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

13,021,904

7,064,487,840

6,413,930,882

316,874,165

424,569,277

107,695,112

13,857,712

7,725,544,701

6,901,768,455

263,985,693

420,560,759

156,575,064

14,545,660

7,754,452,966

6,842,267,893

197,592,719

396,557,182

198,964,461

15,244,531

7,891,981,399

7,043,019,718

246,063,040

435,858,670

189,795,629

16,076,714

8,751,940,681

7,782,861,217

300,167,182

508,725,907

208,558,725

16,919,395

9,305,441,171

8,212,317,757

310,007,924

539,687,640

229,679,718

17,525,167

9,626,065,304

8,422,295,127

342,583,143

599,572,585

256,989,442

18,351,297

10,634,345,667

9,436,817,505

434,130,755

680,068,330

245,937,575

2,710,538

6,361,284,012

5,731,616,337

253,678,291

311,497,470

57,819,180

2,812,420

7,026,351,839

6,244,678,064

213,648,962

301,440,778

87,791,816

2,925,933

7,024,097,766

6,156,994,009

154,334,143

274,352,942

120,018,799

2,999,071

7,135,494,059

6,334,602,711

188,313,928

296,932,146

108,618,218

3,170,743

7,860,711,226

6,948,481,893

232,900,596

349,179,415

116,278,819

3,277,219

8,398,278,426

7,369,538,953

240,119,020

363,867,384

123,748,365

3,428,515

8,669,378,501

7,535,482,221

269,530,240

408,860,760

139,330,520

3,612,133

9,580,720,701

8,414,537,647

334,089,233

468,631,779

134,542,546

2,163,458

6,133,036,929

5,526,725,253

236,487,630

288,701,762

52,214,132

2,268,966

6,782,602,310

6,038,269,090

185,868,913

266,981,510

81,112,597

2,359,272

6,746,286,554

5,921,937,283

120,180,204

232,171,007

111,990,802

2,348,162

6,801,022,254

6,043,788,300

154,156,433

253,219,429

99,062,994

2,465,843

7,440,141,155

6,575,574,080

196,435,483

300,847,319

104,411,836

2,549,091

7,920,235,884

6,953,447,173

192,991,940

303,127,497

110,135,558

2,598,271

8,115,394,384

7,068,730,197

203,018,630

326,576,008

123,557,378

2,480,440

8,538,869,502

7,463,209,264

250,706,247

366,764,203

116,057,956

1,691

17,924,659

3,716

14,671,749

14,710,269

38,521

1,965

31,235,499

51,060

25,909,303

26,005,246

95,943

2,442

34,754,643

45,971

31,105,996

31,189,913

83,918

2,642

34,223,383

49,473

29,082,144

29,137,568

55,426

3,561

35,543,228

175,374

29,558,446

29,625,752

67,306

3,379

47,400,761

50,592

39,524,630

39,580,022

55,392

4,030

69,997,816

39,187

58,218,369

58,342,246

123,877

3,788

69,604,933

22,551

53,365,950

53,476,411

110,461

545,389

210,322,424

204,887,368

2,518,912

8,085,439

5,566,527

541,489

212,514,030

206,357,914

1,870,746

8,454,022

6,583,276

564,219

243,056,569

235,010,755

3,047,943

10,992,022

7,944,079

648,267

300,248,422

290,764,938

5,075,351

14,575,149

9,499,798

701,339

385,026,843

372,732,439

6,906,667

18,706,344

11,799,677

724,749

430,641,781

416,041,188

7,602,450

21,159,865

13,557,415

826,214

483,986,301

466,712,837

8,293,241

23,942,506

15,649,265

1,127,905

972,246,266

951,305,832

30,017,036

48,391,165

18,374,129

1,379,654

291,998,115

271,108,832

8,248,655

45,061,756

36,813,100

1,460,502

272,129,807

230,027,336

-2,734,897

50,567,190

53,302,086

1,514,212

296,690,303

251,608,987

-7,314,587

53,556,856

60,871,442

1,541,539

291,318,703

243,248,370

-2,610,041

60,308,114

62,918,155

1,643,581

375,192,511

318,342,380

-3,500,024

69,696,922

73,196,946

1,713,603

367,117,315

302,733,374

-8,883,674

77,044,693

85,928,367

1,702,952

397,302,544

327,428,647

-17,370,860

80,214,873

97,585,733

1,648,032

442,802,234

411,457,126

-5,419,105

87,654,011

93,073,116

1,209,318

n.a.

n.a.

n.a.

n.a.

n.a.

1,252,298

n.a.

n.a.

n.a.

n.a.

n.a.

1,288,328

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

1,429,876

n.a.

n.a.

n.a.

n.a.

n.a.

1,385,824

n.a.

n.a.

n.a.

n.a.

n.a.

170,336

n.a.

n.a.

n.a.

n.a.

n.a.

208,204

n.a.

n.a.

n.a.

n.a.

n.a.

225,886

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

273,076

n.a.

n.a.

n.a.

n.a.

n.a.

262,210

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

8,931,712

411,205,713

411,205,713

54,947,219

68,010,051

13,062,832

9,584,790

427,063,055

427,063,055

53,071,628

68,552,791

15,481,162

10,105,515

433,664,897

433,664,897

50,573,163

68,647,384

18,074,220

10,703,921

465,168,637

465,168,637

60,359,153

78,618,410

18,259,256

11,262,390

516,036,944

516,036,944

70,766,610

89,849,570

19,082,960

11,928,573

540,045,430

540,045,430

78,772,578

98,775,563

20,002,986

12,393,700

559,384,259

559,384,259

90,423,763

110,496,952

20,073,189

13,091,132

610,822,732

610,822,732

105,460,627

123,782,540

18,321,913

Footnotes at end of table.

- 27 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Table 1.--Number of Businesses, Business Receipts, Net Income, and Deficit, by Form of Business,

Tax Years 1980-2002--Continued

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Tax Year

Form of business, item

All Businesses

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

Corporations

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit)( ¹ )...................................

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

Deficit.....................................................................

C Corporations

Number of businesses.....................................

Total receipts...................................................

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

Net income (less deficit) ..................................

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

Deficit...............................................................

1120-RIC and 1120-REIT

Number of businesses.....................................

Total receipts...................................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

S Corporations

Number of businesses.....................................

Total receipts...................................................

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

Total net income (less deficit) ( ² )....................

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

Deficit...............................................................

Partnerships

Number of businesses...........................................

Total receipts ( ³ )...................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

General ( 4 )

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

Limited ( 5 )

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

LLC

Number of businesses.....................................

Total receipts ( ³ ).............................................

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

Net income (less deficit)...................................

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

Deficit...............................................................

Nonfarm Sole Proprietorships

Number of businesses...........................................

Total receipts.........................................................

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

Net income (less deficit).........................................

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

Deficit.....................................................................

1988

1989

1990

1991

1992

1993

1994

1995

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

18,896,336

11,435,215,490

10,085,772,195

563,932,180

818,548,839

254,616,660

19,560,585

12,133,006,886

10,585,040,288

548,157,101

829,704,453

281,547,353

20,052,917

12,659,120,980

11,074,465,157

541,253,496

n.a.

n.a.

20,498,855

12,664,503,877

11,161,361,183

523,452,364

818,176,732

294,724,370

20,849,195

13,030,765,631

11,612,337,830

611,007,348

877,227,604

266,220,258

21,280,315

13,633,127,677

12,183,757,092

733,369,871

987,904,144

254,534,273

21,990,203

14,854,464,587

13,330,403,562

843,984,176

1,095,275,051

251,290,875

22,478,939

16,161,117,843

14,353,779,041

1,012,514,546

1,270,904,560

258,390,016

3,562,789

10,264,867,461

8,949,846,244

423,115,815

561,646,539

138,530,724

3,627,863

10,934,973,405

9,427,277,533

401,320,146

563,402,110

162,081,965

3,716,650

11,409,520,074

9,860,441,633

383,213,763

n.a.

n.a.

3,802,788

11,436,474,767

9,965,628,799

360,529,974

542,341,802

181,811,828

3,869,024

11,742,134,728

10,360,428,795

414,130,453

581,920,697

167,790,244

3,964,629

12,269,721,709

10,865,542,520

510,258,780

670,480,179

160,221,400

4,342,369

13,360,007,157

11,883,614,940

595,002,432

756,502,169

161,499,736

4,474,167

14,539,050,115

12,785,797,708

736,423,014

900,524,657

164,101,644

2,299,896

8,929,061,395

7,712,940,028

327,131,666

445,141,000

118,009,334

2,199,081

9,381,129,704

7,992,750,467

289,721,555

425,910,498

136,188,943

2,136,032

9,689,007,338

8,272,370,751

270,925,138

416,617,439

145,692,301

2,098,641

9,656,969,832

8,310,147,728

248,113,316

401,582,120

153,468,803

2,077,518

9,821,791,797

8,569,591,965

291,866,888

426,078,044

134,211,156

2,055,982

10,154,952,821

8,897,605,783

368,912,105

496,151,930

127,239,826

2,310,703

11,020,933,534

9,710,160,635

426,082,290

554,083,672

128,001,382

2,312,382

11,955,289,941

10,419,343,855

514,751,182

641,753,805

127,002,623

5,702

71,817,689

-52,447,631

52,596,709

149,078

5,815

89,877,386

-66,819,244

67,087,163

267,920

5,526

99,810,072

-67,457,384

67,983,981

526,597

5,876

96,520,359

-67,671,565

68,188,117

516,553

6,135

98,459,970

-63,933,826

64,704,531

770,705

7,142

117,172,085

-75,113,178

75,770,157

656,979

7,912

128,128,279

-77,243,699

78,447,581

1,203,881

8,666

178,686,713

-122,543,160

123,812,233

1,269,074

1,257,191

1,263,988,377

1,236,906,216

43,536,518

63,908,830

20,372,312

1,422,967

1,463,966,315

1,434,527,066

44,779,347

70,404,449

25,625,102

1,575,092

1,620,702,664

1,588,070,882

44,831,241

n.a.

n.a.

1,698,271

1,682,984,576

1,655,481,071

44,745,093

72,571,565

27,826,472

1,785,371

1,821,882,961

1,790,836,830

58,329,739

91,138,122

32,808,383

1,901,505

1,997,596,803

1,967,936,737

66,233,497

98,558,092

32,324,595

2,023,754

2,210,945,344

2,173,454,305

91,676,443

123,970,916

32,294,473

2,153,119

2,405,073,461

2,366,453,853

99,128,672

134,958,619

35,829,947

1,654,245

498,378,098

463,956,020

14,493,114

111,384,545

96,891,431

1,635,164

505,222,543

464,951,817

14,099,275

113,885,966

99,786,691

1,553,529

518,994,886

483,417,504

16,609,540

116,317,801

99,708,261

1,515,345

515,461,121

483,164,395

21,406,607

113,408,221

92,001,615

1,484,752

551,548,871

514,827,003

42,916,649

121,834,358

78,917,710

1,467,567

606,190,516

560,999,120

66,652,288

137,440,684

70,788,396

1,493,963

703,827,410

656,158,602

82,183,076

150,927,743

68,744,668

1,580,900

814,704,090

760,617,695

106,829,196

178,650,950

71,821,755

1,369,093

n.a.

n.a.

38,503,534

n.a.

n.a.

1,341,527

n.a.

n.a.

35,660,018

n.a.

n.a.

1,267,760

349,839,034

334,184,309

37,770,771

81,903,253

44,132,482

1,244,665

349,793,551

333,189,600

38,108,885

78,330,522

40,221,637

1,214,004

354,750,145

336,912,510

46,194,340

81,313,616

35,119,276

1,174,395

369,030,331

348,350,203

55,028,590

85,128,982

30,100,391

1,161,800

394,825,973

375,032,602

58,721,349

87,680,812

28,959,463

1,163,376

417,535,888

395,396,396

63,625,642

92,586,762

28,961,119

285,152

n.a.

n.a.

-24,010,711

n.a.

n.a.

293,637

n.a.

n.a.

-21,560,743

n.a.

n.a.

285,769

169,155,852

149,233,195

-21,161,231

34,414,548

55,575,779

270,681

165,667,570

149,974,795

-16,702,278

35,077,700

51,779,978

270,748

196,799,726

177,914,493

-3,277,692

40,520,742

43,798,434

275,837

229,703,974

205,554,303

11,360,424

51,238,208

39,877,784

284,346

284,624,411

257,887,113

21,410,503

59,544,970

38,134,467

298,965

330,681,486

302,336,684

38,319,799

76,029,542

37,709,743

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

17,335

7,456,210

7,094,614

263,274

1,073,495

810,221

47,816

24,377,026

23,238,886

2,051,224

3,701,961

1,650,737

118,559

66,486,715

62,884,616

4,883,755

10,034,647

5,150,892

13,679,302

671,969,931

671,969,931

126,323,251

145,517,755

19,194,505

14,297,558

692,810,938

692,810,938

132,737,680

152,416,377

19,678,697

14,782,738

730,606,020

730,606,020

141,430,193

161,657,252

20,227,059

15,180,722

712,567,989

712,567,989

141,515,783

162,426,709

20,910,927

15,495,419

737,082,032

737,082,032

153,960,246

173,472,549

19,512,304

15,848,119

757,215,452

757,215,452

156,458,803

179,983,281

23,524,477

16,153,871

790,630,020

790,630,020

166,798,668

187,845,139

21,046,471

16,423,872

807,363,638

807,363,638

169,262,336

191,728,953

22,466,617

Footnotes at end of table.

- 28 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Table 1.--Number of Businesses, Business Receipts, Net Income, and Deficit, by Form of Business,

Tax Years 1980-2002--Continued

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Tax Year

Form of business, item

All Businesses

Number of businesses.....................................................

Total receipts....................................................................

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

Net income (less deficit)...................................................

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

Deficit...............................................................................

Corporations

Number of businesses.....................................................

Total receipts....................................................................

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

Net income (less deficit)( ¹ ).............................................

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

Deficit...............................................................................

C Corporations

Number of businesses...............................................

Total receipts..............................................................

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

Net income (less deficit) ............................................

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

Deficit.........................................................................

1120-RIC and 1120-REIT

Number of businesses...............................................

Total receipts..............................................................

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

Net income (less deficit).............................................

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

Deficit.........................................................................

S Corporations

Number of businesses...............................................

Total receipts..............................................................

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

Total net income (less deficit) ( ² )..............................

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

Deficit.........................................................................

Partnerships

Number of businesses.....................................................

Total receipts ( ³ ).............................................................

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

Net income (less deficit)...................................................

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

Deficit...............................................................................

General ( 4 )

Number of businesses...............................................

Total receipts ( ³ ).......................................................

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

Net income (less deficit).............................................

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

Deficit.........................................................................

Limited ( 5 )

Number of businesses...............................................

Total receipts ( ³ ).......................................................

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

Net income (less deficit).............................................

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

Deficit.........................................................................

LLC

Number of businesses...............................................

Total receipts ( ³ ).......................................................

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

Net income (less deficit).............................................

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

Deficit.........................................................................

Nonfarm Sole Proprietorships

Number of businesses.....................................................

Total receipts....................................................................

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

Net income (less deficit)...................................................

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

Deficit...............................................................................

1996

1997

1998

1999

2000

2001

2002

(17)

(18)

(19)

(20)

(21)

(22)

(23)

23,240,648

17,371,531,836

15,418,548,555

1,160,565,585

1,444,416,590

283,851,005

23,645,197

18,729,888,900

16,473,284,387

1,311,621,607

1,628,080,417

316,458,810

24,113,044

19,717,102,456

17,285,188,902

1,284,131,816

1,668,090,251

383,959,436

24,448,466

21,616,705,144

18,899,080,667

1,421,748,416

1,864,354,418

442,606,001

25,007,504

23,845,405,224

20,719,272,866

1,470,658,335

2,046,212,168

575,553,831

25,605,898

23,752,254,090

20,799,323,834

1,142,478,029

1,851,745,212

709,267,183

26,434,293

23,361,178,481

20,741,003,999

1,088,304,478

1,781,234,413

692,929,934

4,631,369

15,525,718,006

13,659,470,309

838,591,644

1,016,135,059

177,543,415

4,710,083

16,609,707,302

14,460,928,696

956,736,971

1,155,242,666

198,505,695

4,848,887

17,323,955,004

15,010,264,802

895,152,469

1,144,026,382

248,873,914

4,935,904

18,892,385,693

16,313,971,384

985,363,334

1,282,481,469

297,118,135

5,045,273

20,605,808,071

17,636,551,348

986,952,279

1,391,008,755

404,056,474

5,135,591

20,272,957,625

17,504,288,630

648,758,089

1,155,497,718

506,739,630

5,266,607

19,749,426,052

17,297,125,146

596,524,023

1,084,179,817

487,655,794

2,317,886

12,709,004,468

11,087,481,313

574,553,924

714,272,006

139,718,081

2,248,065

13,445,458,022

11,620,304,753

607,541,446

765,753,475

158,212,028

2,249,970

13,996,499,545

12,006,145,868

532,246,228

736,810,215

204,563,988

2,198,740

15,238,422,201

13,071,173,955

535,289,061

783,499,456

248,210,395

2,172,705

16,607,287,993

14,078,901,182

517,937,235

859,530,894

341,593,657

2,136,756

16,214,520,589

13,813,168,479

270,774,336

709,003,929

438,229,593

2,100,074

15,582,601,688

13,455,844,040

258,673,938

676,337,238

417,663,300

9,067

198,619,366

-138,792,224

139,966,673

1,174,450

9,764

269,011,761

-196,132,514

197,367,117

1,234,604

10,829

266,322,290

-181,117,938

183,243,257

2,125,319

11,389

353,094,730

-256,317,862

258,420,380

2,102,518

12,090

381,042,973

-270,479,156

277,261,656

6,782,500

12,349

296,924,686

-190,296,836

197,629,943

7,333,108

12,156

255,897,663

-154,371,152

161,308,952

6,937,800

2,304,416

2,618,094,172

2,571,988,996

125,245,496

161,896,380

36,650,884

2,452,254

2,895,237,519

2,840,623,943

153,063,011

192,122,074

39,059,063

2,588,088

3,061,133,169

3,004,118,934

181,788,303

223,972,910

42,184,607

2,725,775

3,300,868,762

3,242,797,429

193,756,411

240,561,633

46,805,222

2,860,478

3,617,477,105

3,557,650,166

198,535,888

254,216,205

55,680,317

2,986,486

3,761,512,350

3,691,120,151

187,686,917

248,863,846

61,176,929

3,154,377

3,910,926,701

3,841,281,106

183,478,933

246,533,627

63,054,694

1,654,256

1,002,579,987

915,844,403

145,218,248

228,157,635

82,939,388

1,758,627

1,249,789,312

1,141,963,405

168,240,726

262,373,206

94,132,480

1,855,348

1,474,879,256

1,356,655,904

186,704,627

297,874,299

111,170,672

1,936,919

1,754,972,413

1,615,762,245

228,438,105

348,467,958

120,029,853

2,057,500

2,218,639,870

2,061,764,235

268,990,758

409,972,787

140,982,029

2,132,117

2,462,461,787

2,278,200,526

276,334,824

446,069,172

169,734,347

2,242,169

2,582,060,669

2,414,187,093

270,667,169

439,761,741

169,094,572

1,121,195

458,690,125

430,892,523

77,446,760

106,074,272

28,627,513

1,081,363

482,362,036

451,004,863

88,235,026

113,264,997

25,029,971

1,015,678

428,936,952

399,306,152

82,766,449

107,709,809

24,943,359

950,608

414,879,711

382,760,263

85,767,233

108,487,666

22,720,432

936,564

460,800,631

425,752,004

101,786,779

127,059,152

25,272,374

885,457

508,569,485

464,251,886

101,830,079

128,591,551

26,761,472

841,299

506,554,952

467,422,866

100,914,057

125,748,798

24,834,741

311,563

386,373,126

338,916,079

55,458,035

97,721,530

42,263,496

328,210

474,480,710

423,968,766

62,946,099

109,035,802

46,089,703

369,012

585,636,689

534,248,684

79,328,818

131,493,455

52,164,637

396,907

701,845,221

644,246,861

107,937,194

157,244,765

49,307,571

402,232

884,397,372

830,429,874

119,512,213

170,929,457

51,417,244

437,968

935,891,900

876,234,279

127,448,902

187,146,566

59,697,664

454,741

987,064,490

931,055,315

121,126,936

178,135,683

57,008,747

221,498

157,516,736

146,035,802

12,313,453

24,361,833

12,048,379

349,054

292,946,566

266,989,776

17,059,601

40,072,407

23,012,806

470,657

460,305,616

423,101,069

24,609,360

58,672,036

34,062,676

589,403

638,247,481

588,755,121

34,733,678

82,735,527

48,001,849

718,704

873,441,868

805,582,357

47,691,767

111,984,178

64,292,411

808,692

1,018,000,402

937,714,361

47,055,843

130,331,055

83,275,212

946,130

1,088,441,226

1,015,708,912

48,626,175

135,877,260

87,251,084

16,955,023

843,233,843

843,233,843

176,755,693

200,123,896

23,368,202

17,176,487

870,392,286

870,392,286

186,643,910

210,464,545

23,820,635

17,408,809

918,268,196

918,268,196

202,274,720

226,189,570

23,914,850

17,575,643

969,347,038

969,347,038

207,946,977

233,404,991

25,458,013

17,904,731

1,020,957,283

1,020,957,283

214,715,298

245,230,626

30,515,328

18,338,190

1,016,834,678

1,016,834,678

217,385,116

250,178,322

32,793,206

18,925,517

1,029,691,760

1,029,691,760

221,113,286

257,292,855

36,179,568

n.a. - not available.

1

For Tax Years beginning in 1987, Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

2

Prior to Tax Year 1987, "Total net income (less deficit)" from S Corporations only includes "Net income (less deficit)" from S Corporations and is not as comprehensive as data in future years.

3

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

4

For Tax Years 1980-1995 General Partnerships include Partnerships listed on the tax return as General and not reported. For Tax Years 1996-1999 General Partnerships include Partnerships listed on the

tax return as General, Other and not reported. For Tax Years 2000-2002 General Partnerships include Partnerships listed on the tax return as General, Foreign, Other and not reported.

5

For Tax Years 1980-1992 Limited Partnerships include Partnerships listed on the tax return as Limited Partnerships. For Tax Years 1993-1995 Limited Partnerships include Partnerships listed on the

tax return as Limited Partnerships, General Limited Liability Partnerships, and Limited Liability Partnerships. For Tax Years 1996-1997 Limited Partnerships include Partnerships listed on the tax return

as Limited Partnerships. For Tax Years 1998-1999 Limited Partnerships include Partnerships listed on the tax return as Limited Partnerships and Limited Liability Partnerships. For Tax Years 2000-2002

Limited Partnerships include Partnerships listed on the tax return as Domestic Limited Partnerships and Domestic Limited Liability Partnerships.

NOTE: Detail may not add to totals due to rounding.

- 29 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Table 2A.--Number of Businesses, Business Receipts, Net Income, Deficit, and Other Selected Items,

by Form of Business, Industry, and Business Receipt Size, Tax Year 1998

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Form of business, item

All Businesses

Number of businesses........................

Total receipts......................................

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

Total business deductions..................

Costs of goods sold............................

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

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

Interest paid........................................

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

Net income (less deficit).....................

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

Deficit..................................................

Corporations

Number of businesses........................

Total receipts......................................

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

Total business deductions..................

Costs of goods sold............................

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

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

Interest paid........................................

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

Net income (less deficit)( ¹ )................

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

Deficit

Total

Under

$25,000

$25,000

under

$100,000

$100,000

under

$250,000

$250,000

under

$500,000

All industries

$500,000

under

$1,000,000

$1,000,000

under

$2,500,000

$2,500,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000

or

more

(1)

(2 )

(3 )

(4 )

(5 )

(6)

(7)

(8 )

(9 )

(10)

(11)

24,113,044

19,717,102,456

17,285,188,902

18,591,694,169

10,440,760,907

1,842,782,787

392,122,646

1,051,224,941

614,850,813

1,284,131,816

1,668,091,252

383,959,436

13,974,466

145,339,982

85,639,587

155,884,135

11,029,952

12,727,121

3,693,573

8,451,747

10,060,618

-3,653,627

80,919,485

84,573,112

4,764,739

246,322,213

240,382,492

183,938,754

45,206,264

13,789,306

4,508,918

4,647,506

11,850,625

68,583,858

86,299,688

17,715,830

2,281,237

358,333,168

349,657,141

299,717,900

99,084,131

39,623,419

9,533,042

6,673,745

12,590,142

69,311,628

85,829,167

16,517,539

1,209,764

422,586,745

412,604,563

380,718,555

149,492,786

59,375,350

12,204,453

7,441,285

12,049,870

54,164,474

68,956,178

14,791,704

804,946

563,180,360

549,320,085

528,827,085

234,496,702

80,619,370

16,303,360

8,696,842

13,433,911

44,141,002

60,519,836

16,378,834

587,772

912,928,460

884,928,347

878,482,933

453,722,764

120,138,290

24,973,128

15,346,138

19,989,400

46,483,727

69,185,361

22,701,634

227,203

800,598,575

768,825,657

774,074,954

445,908,980

92,978,628

19,578,789

14,420,702

16,210,411

37,507,870

54,528,990

17,021,120

125,237

873,218,257

826,613,784

840,548,353

512,174,772

95,136,901

18,747,658

20,333,600

16,648,705

44,552,749

63,068,635

18,515,886

110,594

2,266,633,395

2,096,136,446

2,157,081,858

1,429,001,070

209,767,332

39,635,950

62,471,555

42,525,385

129,836,572

173,540,405

43,703,835

27,086

13,127,961,301

11,071,080,801

12,392,419,644

7,060,643,487

1,118,627,067

242,943,776

902,741,822

459,491,746

793,203,564

925,243,507

132,039,943

4,848,888

17,323,955,004

15,010,264,802

16,489,425,015

9,362,392,237

1,613,559,231

354,578,692

966,659,473

542,490,397

895,152,469

1,144,026,383

248,873,914

1,169,591

39,623,284

5,300,644

54,731,670

1,885,708

7,809,413

2,370,314

4,681,406

2,298,498

-910,825

26,222,152

27,132,977

748,636

48,941,501

43,751,193

48,616,050

9,502,361

4,724,016

2,140,059

1,761,072

2,672,944

1,702,940

8,629,334

6,926,394

840,006

145,033,825

137,548,602

140,187,075

39,239,176

17,648,108

5,600,640

3,260,359

4,845,891

7,161,929

15,901,949

8,740,020

644,396

236,229,500

228,043,316

229,891,774

78,685,074

33,476,727

8,449,897

4,388,991

6,718,133

10,775,691

20,293,561

9,517,870

553,217

398,875,148

386,956,560

388,472,729

162,112,523

56,928,888

13,135,995

6,022,030

9,472,406

12,972,958

24,228,279

11,255,320

467,642

740,658,271

717,709,500

721,740,000

365,234,999

97,605,030

21,782,476

11,828,246

16,057,327

22,109,880

38,628,136

16,518,256

193,800

691,966,841

664,080,283

673,104,667

389,020,858

79,260,362

17,687,538

11,719,663

13,809,655

22,492,339

34,678,078

12,185,739

110,302

776,786,140

735,051,410

751,274,323

463,572,404

83,821,262

17,200,808

17,321,956

14,213,582

28,983,818

42,972,894

13,989,076

97,757

2,018,310,740

1,864,328,275

1,925,953,257

1,300,437,747

184,327,501

36,236,540

52,631,514

35,166,394

90,719,519

122,108,029

31,388,511

23,542

12,227,529,752

10,227,495,018

11,555,453,469

6,552,701,386

1,047,957,925

229,974,425

853,044,236

437,235,565

699,144,220

810,363,971

111,219,751

63,741

452,086,050

415,277,551

441,210,912

262,788,953

47,199,391

10,275,254

13,275,774

8,769,602

8,616,383

20,029,156

11,412,773

54,310

1,127,121,724

985,996,990

1,067,676,214

663,093,941

106,876,525

21,732,303

43,168,291

22,909,846

48,709,017

75,865,733

27,156,716

16,878

11,436,870,768

9,449,370,004

10,793,018,563

5,951,014,842

992,647,716

219,049,880

844,962,899

426,899,067

663,134,394

772,266,900

109,132,506

46,561

324,700,090

319,773,859

310,063,412

200,783,451

36,621,871

6,925,554

4,046,183

5,443,980

20,367,435

22,943,738

2,576,303

43,447

891,189,016

878,331,285

858,277,043

637,343,806

77,450,976

14,504,238

9,463,224

12,256,549

42,010,502

46,242,296

4,231,795

6,664

790,658,985

778,125,014

762,434,906

601,686,544

55,310,209

10,924,546

8,081,336

10,336,498

36,009,826

38,097,071

2,087,245

12,217

78,474,189

73,604,446

72,509,511

35,733,664

9,877,000

1,366,728

2,808,954

2,223,844

14,391,407

18,755,679

4,364,272

11,696

227,575,321

211,060,836

211,233,618

111,683,919

24,329,514

3,278,105

9,656,507

7,225,713

38,264,385

50,371,059

12,106,674

3,443

879,292,195

822,446,430

815,903,837

488,763,575

70,139,667

12,952,121

49,681,662

22,220,998

93,982,338

114,769,455

20,787,117

2,718

17,957,928

17,957,928

16,764,518

12,868,704

1,438,639

180,122

202,690

211,279

1,177,524

1,340,061

162,538

1,141

20,747,334

20,747,334

19,894,983

16,879,404

1,110,317

121,304

183,534

133,277

852,668

1,061,317

208,650

101

21,139,354

21,139,354

21,062,338

19,178,526

529,475

17,230

15,925

35,182

77,006

110,081

33,075

C Corporations ( 2 )

Number of businesses..................

2,260,799

470,111

329,244

362,513

313,723

280,738

260,136

109,405

Total receipts................................ 14,262,821,835

29,249,069

22,437,425

64,782,917

117,893,376

205,782,983

412,764,768

393,832,755

Business receipts......................... 12,006,145,868

2,275,358

18,743,409

58,884,625

111,843,093

197,067,452

395,248,776

371,438,609

Total business deductions............ 13,554,140,784

39,762,936

23,869,740

65,662,274

118,618,761

205,965,971

410,061,999

388,293,413

7,428,465,189

861,989

4,140,648

16,719,545

37,439,053

79,976,046

196,040,981

216,389,192

Costs of goods sold......................

1,308,886,018

6,479,696

2,260,393

7,897,407

16,224,492

30,136,317

54,216,388

44,947,695

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

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

291,957,071

1,705,661

1,183,724

2,840,967

4,496,637

7,233,702

12,897,239

10,541,705

Interest paid..................................

929,505,767

3,715,329

1,037,833

1,801,328

2,442,550

3,339,876

7,668,306

8,093,580

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

491,004,497

1,440,500

1,344,518

2,455,012

3,702,106

5,408,595

9,725,130

8,350,120

713,364,166

-10,319,604

-1,450,902

-911,784

-762,586

-284,015

2,247,725

4,385,537

Net income (less deficit)...............

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

920,053,473

6,426,278

2,346,378

4,086,802

4,835,441

6,815,357

13,679,620

13,701,808

Deficit............................................

206,689,307

16,745,882

3,797,280

4,998,586

5,598,027

7,099,371

11,431,895

9,316,271

S Corporations

Number of businesses..................

2,588,088

699,480

419,392

477,493

330,673

272,479

207,505

84,395

Total receipts................................

3,061,133,169

10,374,216

26,504,076

80,250,908

118,336,124

193,092,165

327,893,502

298,134,086

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

3,004,118,934

3,025,287

25,007,785

78,663,977

116,200,223

189,889,107

322,460,724

292,641,674

Total business deductions............

2,935,284,231

14,968,734

24,746,310

74,524,801

111,273,014

182,506,758

311,678,001

284,811,254

1,933,927,048

1,023,719

5,361,714

22,519,631

41,246,021

82,136,476

169,194,018

172,631,666

Costs of goods sold......................

304,673,212

1,329,717

2,463,623

9,750,701

17,252,235

26,792,571

43,388,642

34,312,668

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

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

62,621,621

664,652

956,335

2,759,674

3,953,260

5,902,294

8,885,236

7,145,833

Interest paid..................................

37,153,706

966,077

723,239

1,459,030

1,946,442

2,682,154

4,159,939

3,626,083

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

51,485,899

857,999

1,328,426

2,390,879

3,016,027

4,063,811

6,332,197

5,459,535

181,788,303

9,408,779

3,153,842

8,073,713

11,538,277

13,256,973

19,862,155

18,106,802

Total net income (less deficit).......

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

223,972,910

19,795,874

6,282,956

11,815,147

15,458,120

17,412,922

24,948,516

20,976,270

Deficit............................................

42,184,607

10,387,095

3,129,114

3,741,434

3,919,843

4,155,949

5,086,361

2,869,468

Partnerships

Number of businesses........................

1,855,348

1,037,571

314,120

206,432

113,816

76,622

56,792

22,638

26,723,342

9,234,457

22,587,046

32,041,217

45,937,124

80,480,503

72,533,863

Total receipts ( ³ )................................ 1,474,879,256

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

1,356,655,904

1,345,587

8,485,044

21,396,242

30,245,219

43,995,438

75,429,160

68,647,503

Total business deductions..................

1,386,111,725

42,155,084

10,514,909

21,657,153

29,327,138

41,783,909

73,947,653

67,078,913

737,235,839

599,393

2,330,873

7,047,658

11,076,713

16,722,295

31,427,483

31,850,267

Costs of goods sold............................

142,910,961

3,844,711

723,649

2,141,603

3,957,195

6,656,976

11,262,534

9,978,110

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

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

23,813,223

594,961

234,092

480,318

729,413

1,010,086

1,730,346

1,437,053

Interest paid........................................

73,406,067

2,642,013

503,273

729,857

1,004,563

1,412,735

2,569,823

2,396,681

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

42,579,701

2,883,828

541,827

880,804

916,074

1,429,159

2,334,977

1,922,477

186,704,627

-22,949,829

3,538,893

9,308,886

10,584,311

11,400,164

15,379,479

12,804,592

Net income (less deficit).....................

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

297,875,299

20,084,633

9,807,102

15,056,844

14,679,860

15,852,414

21,078,876

17,419,377

Deficit..................................................

111,170,672

43,034,462

6,268,209

5,747,958

4,095,549

4,452,250

5,699,397

4,614,785

Nonfarm Sole Proprietorships

Number of businesses........................

17,408,809

11,767,304

3,701,983

1,234,799

451,552

175,107

63,338

10,765

Total receipts......................................

918,268,196

78,993,356

188,146,255

190,712,297

154,316,028

118,368,087

91,789,686

36,097,871

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

918,268,196

78,993,356

188,146,255

190,712,297

154,316,028

118,368,087

91,789,686

36,097,871

Total business deductions..................

716,157,430

58,997,381

124,807,795

137,873,672

121,499,642

98,570,447

82,795,280

33,891,374

341,132,831

8,544,851

33,373,029

52,797,297

59,730,999

55,661,884

57,060,283

25,037,855

Costs of goods sold............................

86,312,596

1,072,998

8,341,642

19,833,708

21,941,428

17,033,506

11,270,726

3,740,156

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

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

13,730,731

728,299

2,134,767

3,452,083

3,025,143

2,157,279

1,460,306

454,198

Interest paid........................................

11,159,400

1,128,328

2,383,161

2,683,529

2,047,731

1,262,076

948,069

304,358

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

29,780,715

4,878,291

8,635,854

6,863,448

4,415,663

2,532,346

1,597,096

478,279

202,274,720

20,207,027

63,342,025

52,840,813

32,804,472

19,767,880

8,994,368

2,210,938

Net income (less deficit).....................

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

226,189,570

34,612,700

67,863,252

54,870,374

33,982,757

20,439,144

9,478,348

2,431,535

Deficit..................................................

23,914,850

14,405,673

4,521,227

2,029,562

1,178,285

671,264

483,981

220,596

1

Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

2

For this table, the computations for C Corporations also include 1120-RIC and 1120-REIT returns.

3

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

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

- 30 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Table 2B.--Number of Businesses, Business Receipts, Net Income, Deficit, and Other Selected Items,

by Form of Business, Industry, and Business Receipt Size, Tax Year 1999

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Form of business, item

All Businesses

Number of businesses............................

Total receipts...........................................

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

Total business deductions......................

Costs of goods sold................................

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

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

Interest paid............................................

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

Net income (less deficit)..........................

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

Deficit......................................................

Corporations

Number of businesses............................

Total receipts...........................................

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

Total business deductions......................

Costs of goods sold................................

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

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

Interest paid............................................

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

Net income (less deficit)( ¹ )....................

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

Deficit......................................................

Total

Under

$25,000

$25,000

under

$100,000

$100,000

under

$250,000

$250,000

under

$500,000

All industries

$500,000

under

$1,000,000

$1,000,000

under

$2,500,000

$2,500,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000

or

more

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

24,448,466

21,616,705,144

18,899,080,668

20,375,890,789

11,556,334,280

2,042,858,325

412,079,823

1,104,625,540

666,721,794

1,421,748,416

1,864,354,417

442,606,001

14,045,632

153,000,907

86,911,643

163,641,493

12,144,724

14,487,290

3,947,901

8,415,095

11,566,406

-262,352

91,122,770

91,385,122

4,925,838

251,787,730

245,278,507

190,720,264

45,596,195

14,045,130

4,543,953

4,533,570

12,229,006

70,508,986

90,552,915

20,043,930

2,279,078

357,382,981

348,987,172

299,558,909

93,002,502

39,670,637

9,221,743

6,701,759

13,044,327

68,968,646

87,778,675

18,810,028

1,260,910

442,443,531

432,862,629

400,262,479

156,771,916

63,039,835

12,867,658

7,539,017

12,658,547

52,863,279

69,838,682

16,975,404

812,137

570,557,969

556,233,812

535,158,804

231,109,602

84,119,734

16,696,108

9,142,672

14,114,750

45,701,921

63,077,928

17,376,005

611,773

949,707,439

924,781,255

915,231,457

468,547,249

127,909,401

25,569,657

14,628,875

20,846,207

48,581,874

75,083,080

26,501,205

240,694

844,241,774

813,294,007

816,280,898

468,567,517

100,809,447

19,779,595

14,573,912

17,197,829

38,327,547

57,534,265

19,206,718

129,061

899,797,960

853,876,284

866,494,625

519,234,963

102,175,772

19,085,301

19,011,899

17,735,800

43,318,053

64,421,776

21,103,724

114,155

2,355,160,627

2,174,985,391

2,241,316,628

1,468,827,054

224,847,037

40,637,428

61,970,647

47,019,748

138,731,743

191,281,206

52,549,462

29,189

14,792,624,228

12,461,869,970

13,947,225,232

8,092,532,557

1,271,754,043

259,730,481

958,108,093

500,309,173

915,008,716

1,073,663,121

158,654,404

4,935,904

18,892,385,693

16,313,971,385

17,966,972,060

10,284,098,039

1,783,025,584

371,183,229

1,018,972,484

583,799,586

985,363,333

1,282,481,469

297,118,135

1,188,676

41,690,487

5,320,054

58,065,223

2,526,763

8,436,138

2,570,791

4,284,267

2,684,792

1,800,919

33,088,241

31,287,322

783,455

51,608,391

46,336,764

52,863,919

10,536,416

4,997,985

2,151,175

1,748,137

2,696,629

1,295,110

10,191,580

8,896,470

823,942

142,551,136

135,409,300

139,219,322

36,001,808

17,960,931

5,405,983

3,076,147

5,022,993

5,870,499

16,237,884

10,367,385

676,133

249,595,329

241,723,679

243,501,542

83,293,982

36,019,144

9,052,334

4,651,184

7,086,316

7,870,261

18,522,833

10,652,572

546,171

396,870,550

385,772,814

386,818,661

157,029,884

58,272,613

13,160,400

6,159,057

9,850,040

11,611,525

23,788,385

12,176,859

478,601

760,349,543

739,541,842

742,977,358

372,638,094

102,652,390

22,074,901

10,837,164

16,538,625

21,284,660

40,701,750

19,417,089

202,646

721,490,198

695,125,280

702,199,592

403,704,309

85,166,178

17,728,081

11,729,534

14,414,944

21,298,855

35,373,742

14,074,887

111,873

789,324,352

749,373,499

765,043,705

464,077,146

89,189,063

17,335,095

15,743,969

14,896,667

24,603,836

40,443,551

15,839,716

99,380

2,069,063,871

1,909,148,657

1,971,734,403

1,320,832,938

194,446,549

36,818,322

51,026,577

36,684,895

96,093,707

132,416,595

36,322,888

25,026

13,669,841,835

11,406,219,496

12,904,548,335

7,433,456,697

1,185,884,593

244,886,146

909,716,449

473,923,686

793,633,962

931,716,911

138,082,949

62,635

444,172,775

409,382,461

435,190,488

253,435,981

50,149,397

10,143,624

11,391,036

8,976,255

6,450,674

19,361,933

12,911,260

53,605

1,129,134,158

983,094,514

1,069,025,467

660,354,022

110,075,850

21,305,174

40,986,576

23,400,267

49,448,455

81,561,530

32,113,075

17,555

12,781,120,842

10,531,309,356

12,046,862,715

6,764,387,173

1,121,193,406

232,828,751

900,109,121

461,868,092

753,693,512

888,435,017

134,741,505

49,238

345,151,577

339,991,038

329,853,217

210,641,165

39,039,666

7,191,471

4,352,933

5,920,412

18,153,162

21,081,618

2,928,456

45,775

939,929,713

926,054,143

902,708,936

660,478,916

84,370,699

15,513,148

10,040,002

13,284,628

46,645,252

50,855,065

4,209,813

7,471

888,720,993

874,910,141

857,685,619

669,069,524

64,691,186

12,057,395

9,607,328

12,055,594

39,940,450

43,281,894

3,341,444

14,375

91,715,629

85,744,805

84,175,045

42,362,235

11,368,460

1,556,255

3,030,913

2,616,705

17,241,255

22,282,030

5,040,775

13,437

261,383,977

241,123,955

245,974,396

127,850,796

29,092,877

3,693,307

10,786,371

10,162,868

41,529,671

57,600,793

16,071,122

3,981

1,080,706,229

1,013,574,310

1,001,232,643

619,955,153

85,398,582

14,807,224

48,375,422

26,365,144

120,738,837

141,261,009

20,522,172

2,813

18,757,979

18,757,979

17,275,875

12,795,582

1,618,249

193,951

237,017

222,429

1,472,962

1,696,195

223,233

1,338

24,712,779

24,712,779

23,607,828

20,143,320

1,307,611

125,799

157,699

171,986

1,108,366

1,263,818

155,452

182

42,076,163

42,076,163

41,444,255

39,120,706

470,868

37,111

16,222

20,343

635,917

685,201

49,284

C Corporations ( 2 )

Number of businesses......................

2,210,129

473,987

322,385

343,211

304,663

264,643

257,151

110,294

Total receipts..................................... 15,591,516,931

31,119,510

22,350,928

61,313,454

115,034,275

195,517,231

415,023,993

396,729,766

Business receipts.............................. 13,071,173,955

2,308,441

18,691,583

55,835,226

109,397,822

187,234,409

398,979,937

374,940,207

Total business deductions................ 14,804,802,646

42,283,764

25,351,909

63,896,939

117,099,156

197,336,398

415,817,327

391,938,482

8,224,778,365

1,700,022

4,117,351

14,198,913

37,954,085

74,122,799

197,282,132

217,225,887

Costs of goods sold..........................

1,447,235,089

6,796,789

2,462,164

8,094,401

15,907,701

29,157,499

56,935,202

46,462,681

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

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

304,321,709

1,802,407

1,161,487

2,638,037

4,460,985

6,918,740

12,775,553

10,286,950

Interest paid......................................

978,621,092

3,288,315

1,023,522

1,606,183

2,319,301

3,364,961

6,709,858

7,822,220

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

526,925,540

1,610,292

1,425,281

2,471,795

3,591,522

5,399,831

9,678,254

8,503,951

791,606,922

-10,740,380

-2,979,824

-2,630,113

-2,132,368

-1,918,054

-1,262,008

3,677,030

Net income (less deficit)....................

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

1,041,919,836

8,179,895

2,422,338

3,620,136

4,457,317

6,440,613

12,915,929

14,525,130

Deficit................................................

250,312,913

18,920,275

5,402,162

6,250,249

6,589,685

8,358,667

14,177,937

10,848,100

S Corporations

Number of businesses......................

2,725,775

714,689

461,070

480,730

371,471

281,528

221,450

92,352

Total receipts.....................................

3,300,868,762

10,570,977

29,257,463

81,237,683

134,561,054

201,353,320

345,325,550

324,760,432

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

3,242,797,429

3,011,613

27,645,182

79,574,074

132,325,857

198,538,404

340,561,905

320,185,073

Total business deductions................

3,162,169,414

15,781,458

27,512,010

75,322,383

126,402,386

189,482,263

327,160,031

310,261,111

2,059,319,673

826,740

6,419,065

21,802,895

45,339,897

82,907,086

175,355,962

186,478,422

Costs of goods sold..........................

335,790,494

1,639,349

2,535,821

9,866,530

20,111,443

29,115,114

45,717,189

38,703,497

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

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

66,861,519

768,384

989,687

2,767,946

4,591,350

6,241,660

9,299,349

7,441,131

Interest paid......................................

40,351,393

995,952

724,615

1,469,964

2,331,883

2,794,096

4,127,306

3,907,313

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

56,874,046

1,074,500

1,271,347

2,551,198

3,494,794

4,450,209

6,860,371

5,910,993

193,756,411

12,541,299

4,274,934

8,500,612

10,002,629

13,529,579

22,546,668

17,621,825

Total net income (less deficit)...........

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

240,561,633

24,908,346

7,769,242

12,617,748

14,065,516

17,347,772

27,785,821

20,848,612

Deficit................................................

46,805,222

12,367,047

3,494,308

4,117,136

4,062,887

3,818,192

5,239,152

3,226,787

Partnerships

Number of businesses............................

1,936,919

1,036,339

356,913

212,438

125,787

83,799

64,757

25,094

1,754,972,413

31,042,309

10,391,869

23,471,292

34,875,981

50,555,407

91,042,927

79,786,794

Total receipts ( ³ )....................................

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

1,615,762,245

1,323,477

9,154,272

22,217,320

33,166,729

47,328,987

86,924,445

75,203,945

Total business deductions......................

1,647,491,152

44,613,112

12,262,491

23,283,924

32,366,753

45,779,823

83,689,916

74,113,049

902,157,018

980,414

2,623,624

7,320,780

12,087,758

17,778,260

36,388,551

34,809,446

Costs of goods sold................................

169,905,010

5,002,752

887,756

2,425,227

4,427,127

7,125,707

13,000,939

11,175,584

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

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

26,896,235

646,924

236,070

550,037

817,543

1,109,282

1,955,513

1,524,080

Interest paid............................................

74,428,567

2,937,392

411,785

997,477

994,215

1,577,263

2,851,744

2,465,984

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

51,730,335

3,557,058

655,798

900,880

1,162,038

1,472,709

2,656,720

2,180,415

228,438,105

-21,404,559

5,070,087

8,782,761

11,406,100

13,512,509

17,538,266

14,023,177

Net income (less deficit)..........................

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

348,467,958

23,041,871

11,826,153

15,120,849

16,411,103

17,982,694

24,066,610

18,874,845

Deficit......................................................

120,029,853

44,446,430

6,756,067

6,338,088

5,005,003

4,470,185

6,528,344

4,851,668

Nonfarm Sole Proprietorships

Number of businesses............................

17,575,643

11,820,617

3,785,470

1,242,698

458,990

182,167

68,415

12,953

Total receipts...........................................

969,347,038

80,268,111

189,787,470

191,360,552

157,972,221

123,132,011

98,314,968

42,964,782

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

969,347,038

80,268,111

189,787,470

191,360,552

157,972,221

123,132,011

98,314,968

42,964,782

Total business deductions......................

761,427,577

60,963,158

125,593,854

137,055,663

124,394,184

102,560,320

88,564,183

39,968,256

370,079,223

8,637,547

32,436,154

49,679,914

61,390,176

56,301,458

59,520,604

30,053,763

Costs of goods sold................................

89,927,731

1,048,400

8,159,390

19,284,479

22,593,564

18,721,414

12,256,072

4,467,685

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

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

14,000,359

730,186

2,156,708

3,265,723

2,997,780

2,426,426

1,539,242

527,434

Interest paid............................................

11,224,488

1,193,436

2,373,648

2,628,135

1,893,618

1,406,352

939,967

378,394

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

31,191,872

5,324,555

8,876,579

7,120,454

4,410,193

2,792,001

1,650,863

602,471

207,946,977

19,341,288

64,143,789

54,315,387

33,586,918

20,577,888

9,758,948

3,005,515

Net income (less deficit)..........................

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

233,404,991

34,992,658

68,535,182

56,419,942

34,904,747

21,306,849

10,314,721

3,285,678

Deficit......................................................

25,458,013

15,651,370

4,391,393

2,104,555

1,317,829

728,962

555,772

280,163

1

Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

2

For this table, the computations for C Corporations also include 1120-RIC and 1120-REIT returns.

3

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

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

- 31 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Table 2C.-- Number of Businesses, Business Receipts, Net Income, Deficit, and Other Selected Items,

by Form of Business, Industry, and Business Receipt Size, Tax Year 2000

[All figures are estimates based on samples--money amounts are in thousands of dollars]

All industries

Form of business, item

All Businesses

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Net income (less deficit)....................

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

Deficit................................................

Corporations

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Net income (less deficit)( ¹ )..............

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

Deficit................................................

Total

Under

$25,000

$25,000

under

$100,000

$100,000

under

$250,000

$250,000

under

$500,000

$500,000

under

$1,000,000

$1,000,000

under

$2,500,000

$2,500,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000

or

more

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

25,007,504

23,845,405,223

20,719,272,866

22,597,449,332

12,748,297,892

2,251,927,584

435,168,334

1,376,663,337

706,107,104

1,470,658,334

2,046,212,168

575,553,833

14,323,761

157,049,812

89,207,037

181,945,234

11,274,422

17,949,521

4,133,603

9,050,941

11,907,931

-15,047,369

94,696,194

109,743,562

5,044,551

258,732,605

252,373,284

196,815,975

43,898,992

14,359,720

4,418,811

4,872,806

12,662,894

69,578,410

93,436,476

23,858,065

2,339,518

367,481,725

358,161,770

311,124,577

96,361,476

40,975,312

9,380,045

7,272,703

13,878,648

67,673,841

90,469,148

22,795,306

1,261,215

443,025,048

432,215,830

402,389,404

150,568,425

64,401,650

12,743,848

7,737,944

12,758,995

51,430,798

72,872,893

21,442,095

863,856

601,296,628

587,639,402

565,292,207

234,887,831

92,135,775

17,618,060

10,055,255

15,493,569

47,117,312

68,945,708

21,828,397

631,317

976,329,999

949,118,435

945,806,680

474,583,770

135,667,511

26,167,996

16,229,234

21,853,826

45,585,699

78,614,695

33,028,997

256,111

898,103,068

865,986,458

874,005,483

487,221,982

112,347,486

20,790,089

16,173,654

18,382,838

37,423,472

63,620,215

26,196,744

134,946

941,224,209

894,354,516

915,105,217

536,289,847

110,038,621

19,909,885

20,435,409

18,627,208

38,259,307

67,867,370

29,608,064

121,005

2,485,556,859

2,295,267,190

2,390,301,738

1,544,581,653

243,242,680

42,711,239

71,629,925

47,744,527

123,941,181

196,641,163

72,699,981

31,226

16,716,605,269

13,994,948,943

15,814,662,818

9,168,629,496

1,420,809,312

277,294,761

1,213,205,467

532,796,667

1,004,695,686

1,219,048,308

214,352,622

5,045,274

20,605,808,070

17,636,551,348

19,691,591,726

11,135,287,909

1,957,812,570

390,067,115

1,271,678,744

614,372,700

986,952,279

1,391,008,755

404,056,476

1,220,003

44,380,488

5,491,907

70,783,003

1,799,913

11,705,836

2,763,938

4,618,482

3,216,011

-9,843,613

32,784,125

42,627,738

782,747

51,077,677

45,779,274

53,932,571

9,711,853

5,547,031

2,166,809

1,849,778

2,792,121

-1,130,701

9,499,059

10,629,760

837,072

146,174,039

138,446,952

143,619,156

36,293,813

19,064,459

5,450,593

3,374,102

5,183,637

3,563,967

16,613,183

13,049,216

677,480

250,539,810

241,515,388

246,273,323

83,003,692

37,236,221

8,862,929

4,601,284

7,099,495

5,989,908

19,777,917

13,788,008

581,940

418,959,740

407,815,578

410,164,819

160,966,315

64,933,511

14,038,073

6,816,168

10,723,382

10,827,328

26,185,419

15,358,092

487,533

770,734,628

748,446,965

757,604,529

373,506,201

107,329,549

22,333,620

11,654,376

16,744,022

16,598,640

40,208,246

23,609,607

212,496

754,821,357

727,755,456

738,909,494

411,062,657

94,499,429

18,498,477

12,906,464

14,703,544

19,667,017

38,736,118

19,069,101

115,106

814,040,211

773,334,342

795,091,119

470,727,263

94,297,994

17,779,674

16,780,821

15,157,154

20,005,711

41,677,076

21,671,366

104,524

2,164,472,050

1,996,366,609

2,086,976,141

1,374,616,895

209,222,591

38,379,106

60,085,625

38,661,334

77,528,687

131,662,989

54,134,301

26,372

15,190,608,071

12,551,598,878

14,388,237,571

8,213,599,305

1,313,975,949

259,793,897

1,148,991,644

500,091,999

843,745,335

1,033,864,623

190,119,288

61,995

442,057,984

406,823,175

438,678,408

244,905,415

52,333,629

10,323,869

11,710,569

8,780,380

964,384

19,164,422

18,200,038

55,334

1,156,040,424

1,002,716,239

1,115,030,793

666,289,369

117,502,107

21,522,265

48,010,138

24,454,335

30,140,109

78,191,379

48,051,270

18,073

14,155,575,002

11,530,441,375

13,383,162,430

7,425,825,217

1,238,759,014

245,752,274

1,137,152,020

486,276,141

801,905,897

987,574,486

185,668,589

53,112

371,982,227

366,511,167

356,412,711

225,821,848

41,964,365

7,455,805

5,070,252

6,376,774

19,041,327

22,512,654

3,471,328

49,190

1,008,431,626

993,650,369

971,945,348

708,327,526

91,720,484

16,856,841

12,075,487

14,206,999

47,388,578

53,471,610

6,083,031

8,298

1,035,033,069

1,021,157,503

1,005,075,141

787,774,088

75,216,934

14,041,623

11,839,624

13,815,858

41,839,438

46,290,137

4,450,699

16,277

103,605,325

97,441,501

98,039,798

49,228,313

13,485,353

1,913,773

3,387,853

3,166,059

16,609,437

24,272,086

7,662,649

14,907

291,579,200

269,394,972

275,222,986

146,672,108

32,600,848

4,180,375

11,271,315

8,863,705

45,006,046

63,183,837

18,177,791

4,610

1,471,495,219

1,388,848,085

1,372,338,256

906,232,751

105,191,239

17,457,111

64,174,743

32,669,241

160,530,472

184,647,077

24,116,605

3,563

23,578,673

23,578,673

21,974,300

16,334,270

2,255,274

216,438

266,735

303,995

1,644,159

1,918,207

274,048

1,574

29,505,610

29,505,610

28,102,611

23,292,650

1,419,242

151,758

272,985

219,488

1,406,447

1,794,336

387,889

244

54,501,979

54,501,979

54,086,991

48,797,440

1,642,124

43,753

39,080

35,427

419,879

536,607

116,729

C Corporations ( 2 )

Number of businesses.................

2,184,795

473,111

312,248

343,804

290,666

262,547

255,443

111,573

Total receipts............................... 16,988,330,966

34,802,542

21,564,795

62,482,405

109,589,610

193,014,491

412,749,259

400,454,455

Business receipts........................ 14,078,901,182

2,197,494

17,986,624

56,691,627

103,297,434

184,552,959

395,726,244

378,468,011

Total business deductions........... 16,214,559,976

53,510,760

26,472,510

66,914,698

114,415,388

197,305,969

418,621,397

400,447,623

Costs of goods sold.....................

8,870,607,003

947,771

4,080,571

14,747,835

35,015,985

72,510,542

193,038,476

213,245,821

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

1,586,268,656

9,342,167

3,103,803

8,714,694

16,396,073

30,422,948

58,991,593

50,702,628

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

318,150,036

1,964,909

1,166,774

2,689,827

4,302,065

6,926,143

12,869,057

10,632,853

Interest paid.................................

1,224,269,431

3,494,625

1,002,169

1,731,712

2,417,073

3,381,109

6,895,199

8,474,815

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

552,820,948

1,986,320

1,446,096

2,650,532

3,446,940

5,438,385

9,751,529

8,590,291

Net income (less deficit)..............

788,416,391

-18,618,635

-4,948,454

-4,463,713

-4,870,710

-4,374,969

-6,336,624

-980,895

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

1,136,792,550

8,982,412

2,073,206

4,236,412

4,316,944

6,343,904

11,907,151

14,002,234

Deficit..........................................

348,376,159

27,601,047

7,021,660

8,700,125

9,187,653

10,718,873

18,243,775

14,983,129

S Corporations

Number of businesses.................

2,860,478

746,892

470,499

493,268

386,814

319,392

232,090

100,923

3,617,477,105

9,577,946

29,512,882

83,691,635

140,950,200

225,945,249

357,985,369

354,366,903

Total receipts...............................

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

3,557,650,166

3,294,413

27,792,650

81,755,325

138,217,954

223,262,619

352,720,721

349,287,445

Total business deductions...........

3,477,031,750

17,272,243

27,460,061

76,704,458

131,857,936

212,858,849

338,983,132

338,461,871

Costs of goods sold.....................

2,264,680,905

852,142

5,631,282

21,545,978

47,987,707

88,455,773

180,467,725

197,816,835

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

371,543,914

2,363,670

2,443,228

10,349,765

20,840,148

34,510,564

48,337,956

43,796,801

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

71,917,080

799,030

1,000,035

2,760,765

4,560,864

7,111,930

9,464,563

7,865,624

Interest paid.................................

47,409,313

1,123,857

847,608

1,642,389

2,184,211

3,435,059

4,759,177

4,431,649

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

61,551,752

1,229,691

1,346,026

2,533,105

3,652,555

5,284,997

6,992,492

6,113,254

Total net income (less deficit)......

198,535,888

8,775,022

3,817,753

8,027,680

10,860,618

15,202,297

22,935,264

20,647,912

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

254,216,205

23,801,713

7,425,853

12,376,771

15,460,973

19,841,515

28,301,095

24,733,884

Deficit..........................................

55,680,317

15,026,691

3,608,100

4,349,091

4,600,355

4,639,219

5,365,832

4,085,972

Partnerships

Number of businesses.......................

2,057,500

1,105,074

370,358

225,771

127,043

92,392

71,489

29,579

Total receipts ( ³ )..............................

2,218,639,870

30,495,031

10,392,827

24,480,295

34,710,820

56,037,004

99,920,879

95,923,270

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

2,061,764,235

1,540,837

9,331,909

22,887,427

32,926,025

53,523,939

94,996,978

90,872,562

Total business deductions.................

2,099,471,504

46,629,590

12,896,766

25,086,596

33,393,537

51,552,439

93,386,157

90,925,380

Costs of goods sold...........................

1,225,628,897

1,097,008

2,188,370

7,655,273

11,683,062

19,332,549

38,313,145

43,226,319

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

201,350,844

5,247,107

1,102,352

2,645,448

4,793,832

8,426,283

14,917,390

12,940,994

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

31,145,304

626,327

306,887

593,011

845,209

1,212,790

2,252,245

1,757,577

Interest paid.......................................

92,751,748

3,088,369

652,403

1,079,794

1,071,594

1,741,748

3,469,457

2,814,473

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

58,912,624

3,317,587

816,377

1,094,159

1,076,331

1,655,762

3,216,287

3,037,116

Net income (less deficit)....................

268,990,758

-22,936,889

3,454,060

9,692,339

10,380,367

13,569,499

18,119,607

14,565,822

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

409,972,787

25,584,756

11,862,617

16,704,693

16,644,791

19,150,083

26,570,557

21,352,290

Deficit................................................

140,982,029

48,521,645

8,408,557

7,012,354

6,264,424

5,580,584

8,450,950

6,786,469

Nonfarm Sole Proprietorships

Number of businesses.......................

17,904,731

11,998,684

3,891,446

1,276,675

456,691

189,524

72,294

14,035

Total receipts.....................................

1,020,957,283

82,174,294

197,262,101

196,827,391

157,774,417

126,299,885

105,674,492

47,358,440

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

1,020,957,283

82,174,294

197,262,101

196,827,391

157,774,417

126,299,885

105,674,492

47,358,440

Total business deductions.................

806,386,102

64,532,642

129,986,638

142,418,824

122,722,543

103,574,949

94,815,994

44,170,609

Costs of goods sold...........................

387,381,087

8,377,501

31,998,769

52,412,390

55,881,671

54,588,967

62,764,424

32,933,006

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

92,764,170

996,577

7,710,337

19,265,405

22,371,597

18,775,981

13,420,572

4,907,062

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

13,955,915

743,338

1,945,115

3,336,441

3,035,710

2,367,197

1,582,130

534,035

Interest paid.......................................

12,232,846

1,344,090

2,370,625

2,818,807

2,065,066

1,497,339

1,105,402

452,717

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

32,821,780

5,374,333

9,054,396

7,600,851

4,583,169

3,114,425

1,893,518

642,178

Net income (less deficit)....................

214,715,298

17,733,133

67,255,051

54,417,536

35,060,523

22,720,485

10,867,452

3,190,633

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

245,230,626

36,327,313

72,074,800

57,151,272

36,450,185

23,610,206

11,835,892

3,531,808

Deficit................................................

30,515,328

18,594,179

4,819,749

2,733,736

1,389,663

889,721

968,440

341,174

1

Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

2

For this table, the computations for C Corporations also include 1120-RIC and 1120-REIT returns.

3

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

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

- 32 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Table 2D.--Number of Businesses, Business Receipts, Net Income, Deficit, and Other Selected Items,

by Form of Business, Industry, and Business Receipt Size, Tax Year 2001

[All figures are estimates based on samples--money amounts are in thousands of dollars]

All industries

Form of business, item

Total

Under

$25,000

$25,000

under

$100,000

$100,000

under

$250,000

$250,000

under

$500,000

$500,000

under

$1,000,000

$1,000,000

under

$2,500,000

$2,500,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000

or

more

All Businesses

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

25,605,897

23,752,254,089

20,799,323,834

22,830,860,232

12,743,003,300

2,291,598,628

441,299,097

1,312,833,856

756,298,215

1,142,478,028

1,851,745,212

709,267,183

14,723,359

155,030,082

92,938,069

190,442,838

14,128,405

17,028,803

4,133,318

9,278,832

14,083,334

-32,154,371

90,989,291

123,143,662

5,098,349

262,947,981

256,574,208

198,314,117

43,283,117

13,875,078

4,204,103

4,650,049

12,667,160

72,739,997

96,276,474

23,536,477

2,430,206

379,486,354

369,920,033

319,436,008

93,869,907

40,658,938

9,495,149

7,259,948

14,530,796

73,153,340

96,036,319

22,882,980

1,251,739

440,619,886

427,758,387

402,547,429

144,764,697

61,816,869

12,490,157

10,991,405

13,143,511

48,445,392

71,257,796

22,812,404

902,086

633,667,554

617,312,718

598,204,439

243,022,579

99,864,817

18,518,100

10,156,970

16,192,247

48,128,875

72,636,715

24,507,840

660,467

1,022,436,632

995,886,086

995,149,387

481,365,303

147,622,542

28,184,526

16,900,300

24,259,084

43,051,010

81,092,988

38,041,979

253,212

886,318,474

855,124,273

864,930,664

479,919,667

112,150,757

21,309,786

15,222,860

18,819,327

34,130,677

62,065,111

27,934,434

135,936

950,524,043

904,232,340

927,849,625

534,659,586

116,305,869

20,252,822

19,437,678

20,012,177

36,657,969

67,068,196

30,410,227

119,490

2,458,059,014

2,276,128,145

2,377,854,832

1,516,622,647

246,366,804

43,492,401

65,808,414

52,241,879

109,446,591

185,195,531

75,748,942

31,054

16,563,164,070

14,003,449,576

15,956,130,892

9,191,367,393

1,435,908,151

279,218,736

1,153,127,400

570,348,699

708,878,551

1,029,126,790

320,248,239

Corporations

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)( ¹ ).....................

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

Deficit.......................................................

5,135,591

20,272,957,624

17,504,288,630

19,682,982,949

11,041,533,030

1,968,876,180

392,458,475

1,203,045,923

649,988,724

648,758,089

1,155,497,718

506,739,630

1,248,183

40,603,449

5,727,667

69,345,468

2,134,165

10,937,615

2,695,707

4,947,715

3,763,369

-15,097,850

28,574,988

43,672,838

780,365

51,621,782

46,329,927

53,946,305

9,715,098

5,213,590

2,034,139

1,698,230

2,821,601

-946,419

9,333,558

10,279,977

877,052

152,408,375

144,783,542

148,664,968

36,508,299

19,382,112

5,688,754

3,486,000

5,374,174

6,110,042

18,836,306

12,726,264

672,623

252,126,775

240,759,596

247,239,076

79,464,316

36,361,955

8,641,548

7,659,276

7,018,765

5,214,678

18,976,139

13,761,461

601,468

438,077,167

425,848,994

428,837,176

164,487,891

69,522,956

14,546,169

6,464,068

10,853,042

11,034,908

27,328,387

16,293,480

507,184

803,504,379

783,400,650

793,247,679

377,389,929

116,513,857

23,912,089

12,241,981

18,307,972

12,408,237

39,599,276

27,191,040

207,320

739,037,691

713,185,544

727,151,404

403,360,800

92,848,299

18,763,889

11,902,286

15,175,483

12,621,740

33,587,594

20,965,856

114,073

811,555,585

772,832,567

796,928,855

464,892,716

98,927,784

17,916,074

15,846,420

16,363,442

15,549,982

38,092,569

22,542,586

101,459

2,109,015,526

1,950,715,950

2,046,619,455

1,333,242,273

207,820,456

38,359,556

54,540,349

41,297,611

59,181,921

114,991,883

55,809,962

25,862

14,875,006,896

12,420,704,193

14,371,002,562

8,170,337,542

1,311,347,555

259,900,550

1,084,259,599

529,013,264

542,680,851

826,177,019

283,496,168

2,149,104

16,511,445,274

13,813,168,479

16,065,395,745

8,722,914,095

1,576,363,400

315,490,007

1,153,625,573

582,949,925

461,071,172

906,633,872

445,562,701

477,423

31,246,155

2,414,666

51,511,983

1,292,341

8,503,556

1,959,517

3,686,169

2,393,952

-20,142,319

7,232,399

27,374,718

300,465

21,138,778

17,357,351

25,211,836

3,817,796

2,682,308

1,065,093

962,677

1,362,498

-4,100,916

2,185,230

6,286,146

340,776

61,060,755

56,247,962

65,720,846

14,884,554

8,651,822

2,613,043

1,788,174

2,649,728

-4,689,731

3,520,436

8,210,166

279,879

105,672,345

99,594,626

109,888,682

33,021,754

15,991,526

4,012,741

2,227,109

3,334,638

-4,255,188

4,163,942

8,419,130

260,923

191,922,913

183,697,650

197,359,217

70,425,847

30,802,892

7,031,135

3,240,018

5,497,908

-5,489,860

5,668,182

11,158,043

253,822

408,903,899

394,141,225

418,305,708

184,491,593

61,529,306

13,152,493

7,056,850

10,080,018

-9,743,971

10,826,052

20,570,024

108,022

388,441,383

367,473,891

391,768,298

207,667,832

48,181,418

10,633,888

7,373,097

8,787,945

-4,334,505

11,892,197

16,226,703

57,992

415,663,220

382,559,183

416,232,725

227,827,051

53,273,084

9,640,249

10,943,818

9,202,533

-2,809,559

15,939,651

18,749,209

52,640

1,099,814,334

958,255,611

1,072,411,693

629,382,466

115,378,756

21,175,044

42,881,468

25,749,766

16,151,549

65,194,122

49,042,573

17,161

13,787,581,492

11,351,426,314

13,316,984,757

7,350,102,862

1,231,368,733

244,206,804

1,073,466,195

513,890,939

500,485,672

780,011,662

279,525,990

2,986,486

3,761,512,350

3,691,120,151

3,617,587,204

2,318,618,934

392,512,780

76,968,469

49,420,350

67,038,798

187,686,917

248,863,846

61,176,929

770,761

9,357,294

3,313,001

17,833,486

841,824

2,434,060

736,190

1,261,547

1,369,417

5,044,469

21,342,589

16,298,120

479,900

30,483,003

28,972,577

28,734,468

5,897,302

2,531,282

969,046

735,553

1,459,103

3,154,497

7,148,328

3,993,831

536,276

91,347,620

88,535,580

82,944,122

21,623,745

10,730,291

3,075,711

1,697,826

2,724,446

10,799,773

15,315,870

4,516,098

392,744

146,454,430

141,164,970

137,350,394

46,442,562

20,370,429

4,628,807

5,432,167

3,684,128

9,469,866

14,812,197

5,342,331

340,545

246,154,254

242,151,344

231,477,959

94,062,045

38,720,064

7,515,034

3,224,050

5,355,134

16,524,768

21,660,205

5,135,437

253,362

394,600,480

389,259,425

374,941,971

192,898,336

54,984,552

10,759,596

5,185,131

8,227,954

22,152,208

28,773,224

6,621,016

99,298

350,596,307

345,711,653

335,383,106

195,692,968

44,666,881

8,130,001

4,529,189

6,387,537

16,956,245

21,695,397

4,739,153

56,081

395,892,365

390,273,385

380,696,130

237,065,665

45,654,700

8,275,825

4,902,602

7,160,909

18,359,541

22,152,918

3,793,377

48,819

1,009,201,192

992,460,339

974,207,762

703,859,807

92,441,700

17,184,512

11,658,881

15,547,845

43,030,372

49,797,761

6,767,389

8,702

1,087,425,404

1,069,277,878

1,054,017,805

820,234,680

79,978,822

15,693,746

10,793,404

15,122,326

42,195,179

46,165,357

3,970,178

2,132,117

2,462,461,787

2,278,200,526

2,348,244,173

1,338,114,656

230,874,139

34,626,540

97,278,387

72,199,421

276,334,824

446,069,172

169,734,347

1,129,884

28,815,937

1,599,705

52,810,087

3,740,224

5,011,512

599,935

2,959,271

4,449,111

-34,468,487

25,099,386

59,567,873

374,726

10,648,113

9,566,195

13,509,164

2,607,519

1,004,782

264,984

583,777

913,472

3,925,840

12,176,465

8,250,625

233,896

25,747,293

23,805,805

26,447,813

7,446,858

2,994,508

629,768

932,689

1,152,786

9,981,423

17,595,165

7,613,742

139,446

37,301,575

35,807,255

36,660,536

12,475,154

4,825,441

862,046

1,293,904

1,504,063

10,685,674

18,198,510

7,512,836

102,800

62,400,182

58,273,519

59,208,339

21,292,438

9,561,577

1,435,189

2,045,903

1,946,712

14,010,936

20,957,296

6,946,360

79,883

112,183,539

105,736,722

106,335,531

42,084,213

17,220,066

2,594,931

3,583,656

3,998,698

19,437,946

29,371,661

9,933,716

31,848

100,130,199

94,788,144

93,654,952

44,492,498

14,518,171

1,975,419

2,865,083

2,954,239

18,480,371

24,929,440

6,449,069

18,140

114,951,657

107,382,972

108,247,118

52,953,906

15,170,777

2,077,813

3,321,768

3,333,797

19,729,201

27,279,776

7,550,575

16,487

320,565,219

296,933,926

303,999,426

161,626,452

36,699,909

4,945,384

10,875,521

10,664,982

49,036,703

68,494,229

19,457,527

5,008

1,649,718,073

1,544,306,283

1,547,371,206

989,395,395

123,867,396

19,241,071

68,816,815

41,281,560

165,515,219

201,967,243

36,452,025

18,338,190

1,016,834,678

1,016,834,678

799,633,110

363,355,614

91,848,309

14,214,082

12,509,547

34,110,071

217,385,116

250,178,322

32,793,206

12,345,292

85,610,697

85,610,697

68,287,283

8,254,016

1,079,675

837,676

1,371,846

5,870,855

17,411,966

37,314,917

19,902,951

3,943,258

200,678,086

200,678,086

130,858,648

30,960,500

7,656,706

1,904,980

2,368,042

8,932,086

69,760,576

74,766,451

5,005,874

1,319,258

201,330,686

201,330,686

144,323,227

49,914,750

18,282,317

3,176,627

2,841,259

8,003,836

57,061,874

59,604,848

2,542,974

439,670

151,191,536

151,191,536

118,647,817

52,825,227

20,629,472

2,986,563

2,038,225

4,620,683

32,545,040

34,083,147

1,538,107

197,818

133,190,205

133,190,205

110,158,924

57,242,250

20,780,285

2,536,742

1,646,999

3,392,492

23,083,032

24,351,032

1,268,000

73,400

106,748,714

106,748,714

95,566,177

61,891,161

13,888,619

1,677,506

1,074,663

1,952,414

11,204,827

12,122,051

917,224

14,044

47,150,585

47,150,585

44,124,308

32,066,369

4,784,287

570,478

455,491

689,606

3,028,567

3,548,076

519,510

3,723

24,016,801

24,016,801

22,673,652

16,812,964

2,207,308

258,935

269,490

314,939

1,378,785

1,695,851

317,066

1,544

28,478,269

28,478,269

27,235,951

21,753,922

1,846,440

187,461

392,543

279,286

1,227,966

1,709,419

481,453

184

38,439,100

38,439,100

37,757,124

31,634,456

693,200

77,115

50,987

53,874

682,482

982,528

300,047

C Corporations (2)

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Net income (less deficit)....................

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

Deficit.................................................

S Corporations

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Total net income (less deficit)...........

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

Deficit.................................................

Partnerships

Number of businesses.............................

Total receipts ( ³ ).....................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

Nonfarm Sole Proprietorships

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

1

Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

For this table, the computations for C Corporations also include 1120-RIC and 1120-REIT returns.

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

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

2

3

- 33 -

Petska, Parisi, Luttrell, Davitian, and Scoffic

Table 2E.--Number of Businesses, Business Receipts, Net Income, Deficit, and Other Selected Items,

by Form of Business, Industry, and Business Receipt Size, Tax Year 2002

[All figures are estimates based on samples--money amounts are in thousands of dollars]

All industries

Form of business, item

All Businesses

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

Corporations

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)( ¹ ).....................

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

Deficit.......................................................

C Corporations ( 2 )

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Net income (less deficit)....................

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

Deficit.................................................

S Corporations

Number of businesses.......................

Total receipts.....................................

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

Total business deductions.................

Costs of goods sold...........................

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

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

Interest paid.......................................

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

Total net income (less deficit)...........

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

Deficit.................................................

Partnerships

Number of businesses.............................

Total receipts ( ³ ).....................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

Nonfarm Sole Proprietorships

Number of businesses.............................

Total receipts...........................................

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

Total business deductions.......................

Costs of goods sold.................................

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

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

Interest paid.............................................

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

Net income (less deficit)..........................

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

Deficit.......................................................

Total

Under

$25,000

$25,000

under

$100,000

$100,000

under

$250,000

$250,000

under

$500,000

$500,000

under

$1,000,000

$1,000,000

under

$2,500,000

$2,500,000

under

$5,000,000

$5,000,000

under

$10,000,000

$10,000,000

under

$50,000,000

$50,000,000

or

more

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

26,434,293

23,361,178,481

20,741,003,999

22,463,630,938

12,389,402,643

2,322,634,367

447,889,738

992,318,790

831,111,969

1,088,304,478

1,781,234,412

692,929,934

15,202,645

158,287,542

94,623,867

189,439,969

11,137,601

15,183,200

4,176,027

8,266,714

14,167,232

-35,207,003

89,088,110

124,295,113

5,318,640

273,216,155

266,112,890

208,087,137

43,445,479

14,222,424

4,660,884

4,559,313

14,332,408

71,225,703

98,555,316

27,329,613

2,484,778

384,486,871

375,700,789

324,116,768

95,473,645

40,570,935

9,435,166

6,551,377

16,109,773

73,497,961

95,831,974

22,334,013

1,294,887

451,453,173

442,258,534

411,662,071

146,955,332

63,612,940

12,954,735

6,862,157

14,246,100

51,123,474

74,766,223

23,642,748

918,926

643,349,197

628,537,583

608,173,280

244,083,483

102,579,295

19,035,887

8,957,269

18,581,791

48,206,107

72,468,090

24,261,983

668,699

1,035,489,736

1,011,167,258

1,005,173,751

485,274,766

149,773,658

28,592,443

14,281,321

26,880,034

44,135,280

78,540,264

34,404,983

256,345

895,421,534

865,492,105

873,716,273

471,758,737

118,758,217

22,233,837

12,851,625

20,741,549

32,541,039

58,353,005

25,811,966

137,587

952,525,155

908,346,592

926,726,567

538,458,939

116,327,416

20,739,552

16,684,192

22,135,501

38,735,299

67,387,065

28,651,765

120,986

2,486,021,062

2,311,588,821

2,394,360,316

1,514,356,816

255,606,688

44,355,212

51,823,571

55,554,641

117,160,769

185,433,067

68,272,298

30,803

16,080,928,056

13,837,175,560

15,522,174,806

8,838,457,844

1,445,999,594

281,705,995

861,481,252

628,362,940

646,885,849

960,811,300

313,925,451

5,266,607

19,749,426,052

17,297,125,146

19,198,882,117

10,607,404,004

1,988,294,948

396,571,738

912,751,562

710,881,312

596,524,023

1,084,179,817

487,655,794

1,282,449

38,458,278

5,730,889

66,039,533

1,866,005

8,693,151

2,556,149

4,417,226

3,470,361

-16,618,912

24,970,657

41,589,569

828,658

53,727,669

48,777,161

56,592,652

10,168,249

5,094,139

2,240,508

1,645,291

3,589,714

-1,956,564

8,758,595

10,715,159

893,875

153,639,962

146,591,152

149,698,092

38,006,411

18,427,070

5,591,856

3,009,756

6,151,023

4,819,272

16,866,762

12,047,490

688,785

253,596,745

246,224,279

250,581,925

80,144,537

36,679,649

8,866,155

3,993,239

7,653,132

3,749,595

19,031,190

15,281,595

610,715

442,377,560

431,617,409

432,390,571

163,208,766

70,784,527

14,823,779

5,850,328

12,144,892

11,469,724

27,054,800

15,585,076

510,424

808,490,681

789,209,655

795,994,369

378,171,863

116,934,179

23,978,465

9,987,556

20,047,986

13,713,879

37,818,772

24,104,893

209,942

743,724,722

718,536,156

731,819,176

396,440,900

97,510,821

19,500,665

9,754,194

16,569,681

12,678,754

31,910,085

19,231,331

114,539

805,258,852

767,997,903

786,788,633

462,415,265

98,428,756

18,193,816

13,059,364

17,684,046

17,945,354

37,999,291

20,053,936

101,777

2,108,934,069

1,958,909,658

2,038,781,145

1,318,982,261

213,033,121

38,864,217

42,625,382

44,082,666

65,391,437

115,118,704

49,727,266

25,443

14,341,217,514

12,183,530,885

13,890,196,023

7,757,999,748

1,322,709,535

261,956,129

818,409,225

579,487,809

485,331,483

764,650,961

279,319,478

2,112,230

15,838,499,350

13,455,844,040

15,439,803,663

8,220,579,884

1,569,301,518

315,744,047

873,968,319

632,581,809

413,045,090

837,646,190

424,601,100

472,469

28,504,846

2,257,712

47,818,120

803,602

5,933,543

1,758,778

3,391,045

2,067,413

-19,148,033

7,054,427

26,202,460

304,702

20,731,910

17,418,221

24,943,962

3,896,827

2,429,179

1,086,518

871,385

1,465,393

-4,218,962

1,886,041

6,105,003

336,437

59,710,978

54,866,994

63,845,753

14,480,167

8,162,958

2,565,602

1,495,425

2,727,110

-4,172,025

3,193,915

7,365,940

276,819

104,169,660

98,925,788

110,153,988

33,921,090

15,284,537

4,081,924

1,882,783

3,479,247

-5,995,410

3,823,261

9,818,671

250,744

184,240,237

176,587,421

189,373,466

66,012,464

28,793,483

6,743,821

2,820,419

5,629,286

-5,195,853

5,067,070

10,262,923

240,579

388,704,542

375,382,257

395,508,821

174,303,365

57,740,829

12,507,701

5,435,940

10,264,171

-7,110,483

9,695,354

16,805,837

105,620

376,515,006

356,654,979

378,798,010

195,474,791

49,186,789

10,563,613

5,922,761

8,834,280

-3,334,615

10,729,547

14,064,162

57,831

410,275,152

378,923,647

408,300,820

224,588,717

51,594,471

9,789,494

8,689,533

9,725,392

-246,489

15,707,804

15,954,293

50,702

1,062,957,229

930,333,430

1,030,741,791

594,582,839

117,410,926

21,302,098

33,453,167

26,535,600

21,853,336

64,559,522

42,706,185

16,326

13,202,689,791

11,064,493,590

12,790,318,932

6,912,516,022

1,232,764,802

245,344,498

810,005,862

561,853,917

440,613,623

715,929,248

275,315,625

3,154,377

3,910,926,701

3,841,281,106

3,759,078,454

2,386,824,120

418,993,431

80,827,691

38,783,242

78,299,503

183,478,933

246,533,627

63,054,694

809,980

9,953,432

3,473,177

18,221,412

1,062,403

2,759,608

797,371

1,026,182

1,402,949

2,529,121

17,916,230

15,387,109

523,956

32,995,759

31,358,940

31,648,689

6,271,423

2,664,960

1,153,991

773,906

2,124,321

2,262,398

6,872,554

4,610,156

557,438

93,928,985

91,724,158

85,852,338

23,526,244

10,264,112

3,026,254

1,514,331

3,423,912

8,991,297

13,672,847

4,681,550

411,966

149,427,085

147,298,491

140,427,937

46,223,446

21,395,112

4,784,231

2,110,456

4,173,886

9,745,005

15,207,929

5,462,924

359,971

258,137,323

255,029,988

243,017,105

97,196,302

41,991,045

8,079,958

3,029,909

6,515,606

16,665,577

21,987,730

5,322,153

269,845

419,786,138

413,827,398

400,485,548

203,868,497

59,193,350

11,470,764

4,551,617

9,783,815

20,824,362

28,123,418

7,299,056

104,321

367,209,716

361,881,176

353,021,166

200,966,108

48,324,031

8,937,052

3,831,433

7,735,401

16,013,369

21,180,538

5,167,169

56,708

394,983,700

389,074,256

378,487,813

237,826,549

46,834,285

8,404,321

4,369,831

7,958,655

18,191,843

22,291,487

4,099,643

51,075

1,045,976,840

1,028,576,228

1,008,039,354

724,399,421

95,622,195

17,562,118

9,172,215

17,547,066

43,538,101

50,559,182

7,021,081

9,117

1,138,527,723

1,119,037,294

1,099,877,091

845,483,726

89,944,733

16,611,631

8,403,363

17,633,892

44,717,860

48,721,713

4,003,853

2,242,169

2,582,060,669

2,414,187,093

2,455,848,170

1,430,213,629

237,882,426

36,416,569

68,127,690

82,897,056

270,667,169

439,761,741

169,094,572

1,203,722

32,608,125

1,671,840

52,328,995

1,044,041

5,511,544

804,394

2,634,518

4,281,378

-34,946,815

25,759,194

60,706,009

380,403

11,849,604

9,696,847

15,327,948

3,038,499

1,204,394

290,282

534,193

1,053,369

1,702,237

12,511,429

10,809,192

248,533

26,249,643

24,512,371

26,632,418

7,297,974

2,882,053

596,450

921,697

1,511,670

11,861,270

19,073,137

7,211,867

145,261

40,107,371

38,285,197

39,142,651

14,069,028

5,336,723

1,028,306

967,774

1,646,264

11,562,945

18,106,027

6,543,082

104,958

62,897,320

58,845,858

60,916,260

21,850,701

9,524,195

1,498,228

1,696,230

2,471,460

13,504,407

20,842,847

7,338,440

83,998

119,181,641

114,140,189

113,086,856

46,860,712

18,391,405

2,833,426

3,251,528

4,487,239

18,671,768

27,979,207

9,307,438

33,201

106,969,882

102,229,020

100,022,075

45,415,503

16,538,950

2,203,244

2,729,310

3,447,065

16,999,756

23,157,217

6,157,461

19,198

121,553,349

114,635,734

115,461,191

57,893,441

15,568,867

2,237,581

3,371,115

4,091,014

19,531,172

27,789,869

8,258,697

17,709

349,431,600

325,023,769

328,925,224

174,520,652

40,555,992

5,277,974

9,007,515

11,140,872

50,750,365

68,981,239

18,230,874

5,187

1,711,212,135

1,625,146,268

1,604,004,552

1,058,223,077

122,368,302

19,646,683

43,013,810

48,766,726

161,030,063

195,561,575

34,531,512

18,925,517

1,029,691,760

1,029,691,760

808,900,651

351,785,009

96,456,993

14,901,431

11,439,538

37,333,601

221,113,286

257,292,855

36,179,568

12,716,473

87,221,139

87,221,139

71,071,441

8,227,555

978,505

815,484

1,214,970

6,415,493

16,358,724

38,358,259

21,999,535

4,109,579

207,638,883

207,638,883

136,166,538

30,238,731

7,923,891

2,130,093

2,379,829

9,689,325

71,480,030

77,285,293

5,805,262

1,342,370

204,597,266

204,597,266

147,786,259

50,169,260

19,261,812

3,246,859

2,619,924

8,447,080

56,817,419

59,892,075

3,074,656

460,841

157,749,058

157,749,058

121,937,495

52,741,768

21,596,568

3,060,274

1,901,144

4,946,704

35,810,934

37,629,006

1,818,071

203,253

138,074,317

138,074,317

114,866,449

59,024,016

22,270,573

2,713,880

1,410,711

3,965,439

23,231,976

24,570,442

1,338,467

74,277

107,817,414

107,817,414

96,092,526

60,242,191

14,448,073

1,780,552

1,042,236

2,344,809

11,749,632

12,742,285

992,653

13,202

44,726,930

44,726,930

41,875,022

29,902,334

4,708,446

529,928

368,121

724,803

2,862,529

3,285,703

423,175

3,849

25,712,955

25,712,955

24,476,744

18,150,232

2,329,792

308,156

253,713

360,441

1,258,773

1,597,905

339,131

1,499

27,655,393

27,655,393

26,653,947

20,853,904

2,017,575

213,021

190,674

331,103

1,018,966

1,333,125

314,158

173

28,498,407

28,498,407

27,974,231

22,235,019

921,757

103,183

58,217

108,404

524,303

598,763

74,460

1

Total Corporation "Net income (less deficit)" includes "Total net income (less deficit)" from S Corporations and is more comprehensive than what SOI generally publishes.

For this table, the computations for C Corporations also include 1120-RIC and 1120-REIT returns.

For consistency purposes of this publication, what SOI normally publishes as Partnership "Total income" is labeled as "Total receipts."

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

2

3

- 34 -

An Analysis of Business Organizational Structure and Activity from Tax Data

Table 3A.--Number of Businesses, Business Receipts, Net Income, and Deficit, by Form of Business and Industry,

Tax Year 1998

[All figures are estimates based on samples--money amounts are in thousands of dollars]

Form of business, item

All

Agriculture,

industries

forestry, fishing,

Wholesale

Mining

Utilities

Construction

Manufacturing

and hunting

(1)

(2)

(3)

(4)

(5)

(6)

Transportation

and

and

retail trade

warehousing

(7)

(8)

Finance and

Information

insurance

(9)

(10)

All Businesses

Number of businesses............................

24,113,045

539,643

179,941

17,662

2,920,802

706,002

3,813,207

969,101

335,332

1,026,302

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

17,285,188,902

131,665,240

147,677,818

499,833,981

1,109,402,772

4,865,936,073

5,041,650,550

543,877,331

771,910,696

1,435,257,053

Net income (less deficit).........................

1,284,131,818

3,143,718

6,394,789

33,386,649

65,318,955

268,147,759

117,285,087

24,421,428

31,289,380

367,427,885

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

1,668,091,253

12,483,647

19,331,265

42,448,390

80,156,917

331,010,906

158,707,639

33,697,693

89,056,619

411,027,844

Deficit.....................................................

383,959,435

9,339,929

12,936,476

9,061,740

14,837,964

62,863,149

41,422,552

9,276,265

57,767,239

43,599,957

Corporations

Number of businesses............................

4,848,888

135,107

31,467

8,067

551,935

309,912

956,803

159,646

100,977

218,193

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

This text is long and has been trimmed here. Open the source document for the complete record.