# Sole Proprietorship Returns, 2002 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A59a8a35eeb5c725d ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Sole Proprietorship Returns, 2002 by Kevin Pierce and Michael Parisi N 6 onfarm sole proprietorship profits increased 1.7 percent for Tax Year 2002 to $221.1 billion. While a majority of the principal sole proprietorship industrial sectors reported increased profits, a few sectors reported a decrease in profits. The largest percentage increase in profits for a major industrial sector was 13.7 percent for wholesale trade. The next largest percentage growth in profits for a major industrial sector was 12.9 percent for finance and insurance, followed by a 10.6-percent growth reported by real estate and rental and leasing. Four major industrial sectors showed a decline in profits for 2002. The largest percentage decrease in profits was in retail trade, with a 20.8-percent decrease, followed by transportation and warehousing with a 5.4-percent decrease. In addition to sole proprietorship growth in profits, Tax Year 2002 showed growth in both receipts and deductions: total business receipts increased 1.3 percent to $1,029.7 billion, and total business deductions grew 1.2 percent to $808.9 billion. With a 14.1percent increase, administrative and support services [1] reported the largest percentage increase in receipts, followed by an 8.6-percent growth reported by real estate and rental and leasing. Administrative and support services also reported the largest percentage increase in deductions at 16.2 percent for 2002. When inflation is taken into account, 2002 total nonfarm sole proprietorship profits increased 0.2 percent, receipts decreased 0.3 percent, and deductions decreased 0.4 percent. Despite the overall increase in net income less deficits, sole proprietorship deficits increased by 8.7 percent in real terms from 2001. The North American Industry Classification System (NAICS) for industrial coding was introduced for the first time in Tax Year 1998. Because of the coding changes, comparisons between data from 1998–2002 with 1997 and prior years may show inconsistencies. One reason is that many sole proprietorships under the NAICS system were classiKevin Pierce and Michael Parisi are economists with the Individual Research Section and Individual Returns Analysis Section. This article was written under the direction of Carl Greene, Chief of Individual Research Section, and Jeff Hartzok, Chief of Individual Returns Analysis Section. 6 fied in completely different industrial groups, which makes prior-year comparisons inappropriate. For example, in 1997, finance, insurance and real estate were grouped by Standard Industrial Classification (SIC) code as one industry while, under the NAICS system, the group split into two industrial sectors. The industrial sectors based on the NAICS codes, used for comparisons in this article with 2001 and future articles, are reported in Tables 1 and 2. ReturnsandReceipts The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2002 increased 3.2 percent to over 18.9 million (Figure A)[2]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of returns for Tax Year 2002: professional, scientific, and technical services increased 3.1 percent, and retail trade increased 3.0 percent. The number of returns in construction, the second largest sector for 2001, declined 4.0 percent. This was the largest decline in number of returns for all major sectors. The largest growth was found in finance and insurance services (12.3 percent). Total business receipts (the sum of “income from sales and operations” and “other business income”) for all nonfarm sole proprietorship industries increased 1.3 percent, from $1,016.8 billion to $1,029.7 billion [3]. Administrative and support services showed the largest percentage growth in receipts, reporting an increase of $5.6 billion or 14.1 percent. Real estate and rental and leasing receipts increased 8.6 percent, the second largest percentage increase for 2002. Professional, scientific, and technical services, reported the largest dollar increase in receipts of $6.1 billion. Several industrial sectors reported drops in business receipts for 2002, the largest being wholesale trade with an 8.4-percent decrease. The next two largest percentage decreases in receipts were found in finance and insurance with 7.6 percent, and retail trade with 2.9-percent. As shown in Figure B, total receipts dropped for the second straight year, decreasing 0.3 percent (in constant dollars). This was a smaller percentage decrease than the 2.7-percentage decrease in 2001, which was the first decrease in business receipts since 1991 [4]. Sole Proprietorship Returns, 2002 Figure A Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors, Tax Years 2001 and 2002 [Number of returns is in thousands--money amounts are in billions of dollars] Number of returns Industrial sector 2001 2002 Total business receipts Percentage 2001 2002 increase (1) (2) (3) Total business deductions ¹ Percentage 2001 2002 (7) (8) Percentage increase (4) (5) increase (6) (9) All nonfarm industries........................................................................................................................... 18,338.2 18,925.5 3.2 1,016.8 1,029.7 1.3 799.6 808.9 1.2 Construction........................................................................................................................... 2,372.9 2,278.2 -4.0 164.2 168.5 Specialty trade contractors........................................................................................................................... 1,854.8 1,708.4 -7.9 108.2 107.6 2.6 -0.5 135.7 86.5 140.4 86.9 3.4 0.5 Wholesale trade (merchant wholesalers)........................................................................................................................... 310.4 308.0 -0.8 38.8 35.5 Retail trade........................................................................................................................... 2,254.2 2,321.2 3.0 184.8 179.4 Transportation and warehousing........................................................................................................................... 939.5 949.4 1.1 52.7 54.9 -8.4 -2.9 4.2 34.8 175.2 44.6 31.0 171.8 47.3 -11.0 -1.9 5.9 Finance and insurance........................................................................................................................... 576.6 647.3 12.3 82.6 76.4 Real estate and rental and leasing........................................................................................................................... 968.1 1,015.5 4.9 49.2 53.4 Real estate........................................................................................................................... 895.9 960.1 7.2 44.9 49.3 Professional, scientific, and -7.6 8.6 9.8 68.8 28.8 24.6 60.7 30.8 26.9 -11.7 7.0 9.4 technical services........................................................................................................................... 2,592.3 2,672.4 3.1 118.8 124.9 5.2 Administrative and support and waste management and remediation services........................................................................................................................... 1,567.3 1,754.5 11.9 39.3 44.9 14.1 70.0 76.4 9.1 28.0 32.6 16.2 Health care and social assistance........................................................................................................................... 1,679.0 1,722.5 2.6 93.5 97.1 Child day care services........................................................................................................................... 704.9 677.0 -4.0 8.8 8.9 Arts, entertainment, and recreation........................................................................................................................... 1,037.3 1,105.7 6.6 21.2 23.0 Performing arts, spectator sports, 3.8 1.4 8.4 53.8 5.4 15.9 55.8 5.6 17.5 3.6 4.0 10.2 and related industries........................................................................................................................... 879.6 946.1 7.6 16.1 17.9 Other services........................................................................................................................... 1,853.3 1,968.9 6.2 68.8 72.3 Personal and laundry services........................................................................................................................... 1,143.5 1,225.1 7.1 30.3 33.4 10.6 5.0 10.3 11.3 54.1 21.4 12.5 56.8 23.8 10.1 5.1 10.8 All other industries........................................................................................................................... 2,187.3 2,181.9 -0.2 102.9 -3.3 90.1 87.9 -2.4 99.5 ¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. Figure B Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2002 [Money amounts are in billions of dollars] Total business receipts Tax year Total business deductions Constant dollars Current dollars Amount 2 (2) Net income less deficit (profits) Constant dollars Percentage Current dollars Amount increase (1) 1 (3) 2 Constant dollars Percentage Current dollars Amount (7) (8) increase (4) (5) (6) 2 Percentage increase (9) 1988....................................................................... 672.0 887.8 -- 545.7 720.9 -- 126.3 166.9 -- 1989....................................................................... 692.8 881.9 1990....................................................................... 730.6 895.5 1991....................................................................... 712.6 843.9 737.1 853.3 1992....................................................................... -0.7 1.5 -5.8 1.1 560.2 589.2 571.2 583.1 713.1 722.1 676.4 675.0 -1.1 1.3 -6.3 -0.2 132.7 141.4 141.5 154.0 168.9 173.3 167.6 178.3 1.2 2.6 -3.3 6.4 1993....................................................................... 757.2 856.8 1994....................................................................... 790.6 876.0 807.4 876.6 1995....................................................................... 843.2 898.5 1996....................................................................... 0.4 2.2 0.1 2.5 600.8 623.8 638.1 666.5 679.7 691.2 692.8 710.1 0.7 1.7 0.2 2.5 156.5 166.8 169.3 176.8 177.0 184.8 183.8 188.3 -0.7 4.4 -0.6 2.5 1997....................................................................... 870.4 912.2 1998....................................................................... 918.3 951.8 969.3 990.5 1999....................................................................... 1,021.0 2000....................................................................... 1,021.0 993.3 2001....................................................................... 1,016.8 1.5 4.3 4.1 683.9 716.2 761.4 716.7 742.3 778.0 0.9 3.6 4.8 186.6 202.3 207.9 195.6 209.7 212.5 3.9 7.2 1.3 3.1 -2.7 -0.3 806.4 799.6 808.9 806.4 781.1 778.2 3.6 -3.1 -0.4 214.7 217.4 221.1 214.7 212.3 212.7 1.1 -1.1 0.2 990.6 2002....................................................................... 1,029.7 ¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses (after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income or deficit. ² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000 = 100. NOTE: Percentage increases were calculated before rounding. 7 Sole Proprietorship Returns, 2002 Deductions 8 8 Total business deductions (“cost of sales and operations” plus business expenses, including expenses for home offices) in current dollars increased 1.2 percent from $799.6 billion for 2001 to $808.9 billion for 2002 (Figure A) [5,6]. Administrative and support services showed the largest percentage increase in deductions with 16.2 percent. Wholesale trade, retail trade, and finance and insurance were the sole proprietorship principal sectors that did not show an increase in deductions for 2002. Sole proprietorships in finance and insurance showed the largest percentage decrease in deductions (11.7 percent), followed by wholesale trade (11.0 percent). When accounting for inflation, business deductions decreased 0.4 percent for 2002, a smaller decrease than the 3.1-percent decrease for 2001 (Figure B). Representing 43.5 percent of total 2002 business deductions, the cost of sales and operations was $351.8 billion (Figure C), a 3.2-percent decrease from the 2001 level. Total business “expenses” (total business deductions minus the cost of sales and operations) were $457.1 billion for 2002, a 4.8-percent increase from the 2001 amount. Figure D graphically presents the main components of total business expenses. The largest component, salaries and wages, accounted for 14.5 percent of the total. For 2002, salaries and wages totaled $66.1 billion, a 3.5-percent increase from 2001 (Figure C). The next largest components of business expenses were cars and trucks (11.0 percent), depreciation (8.0 percent), and rent on business property, machinery, and equipment (7.6 percent). For 2002, these items were $50.5 billion, $36.6 billion, and $34.9 billion, respectively. Car and truck expenses showed a 6.6-percent increase from 2001; depreciation, a 9.6-percent increase; and rent on business property, machinery, and equipment, a 3.6-percent increase. Depreciation deductions began to decline for Tax Year 1986, following the enactment of the Tax Reform Act of 1986 (TRA86). TRA86 reduced the allowable depreciation deduction by lengthening the cost recovery periods and changing the depreciation methods for property placed in service after July 31, 1986. In constant dollars, depreciation deductions dropped 9.6 percent for 1989 and continued to decline through 1992 (Figure E). Beginning with 1993, the trend reversed, and constant dollar depreciation increased every year through 2002, except for 1995, Figure C Components of Nonfarm Sole Proprietorship Business Deductions, Tax Years 2001 and 2002 [Money amounts are in millions of dollars] Business deductions 2001 2002 (1) (2) Percentage increase (3) Business deductions, total ¹.......................................................................................................... 799,633.1 808,900.7 1.2 Cost of sales and operations, total........................................................................................................ 363,355.6 351,785.0 -3.2 Inventory, beginning of year.......................................................................................................... 34,176.3 34,291.7 0.3 Cost of labor.......................................................................................................... 28,022.3 30,389.0 8.4 Purchases.......................................................................................................... 246,541.1 227,085.8 -7.9 Materials and supplies.......................................................................................................... 43,798.3 45,589.2 4.1 Other costs.......................................................................................................... 46,550.1 50,709.1 8.9 Inventory, end of year.......................................................................................................... 35,732.5 36,279.8 1.5 Business expenses, total.......................................................................................................... 436,277.5 457,115.6 4.8 Advertising expenses.......................................................................................................... 10,774.1 11,238.0 4.3 Bad debts from sales or services.......................................................................................................... 1,176.3 1,055.7 -10.3 Car and truck expenses.......................................................................................................... 47,351.9 50,489.4 6.6 Commissions.......................................................................................................... 12,130.1 14,066.8 16.0 Depletion.......................................................................................................... 693.7 461.9 -33.4 Depreciation ².......................................................................................................... 33,425.6 36,642.0 9.6 Employee benefit programs.......................................................................................................... 2,040.6 2,284.4 11.9 Home office business deductions ².......................................................................................................... 5,981.4 6,474.1 8.2 Insurance.......................................................................................................... 14,367.0 16,004.3 11.4 Legal and professional services.......................................................................................................... 7,482.6 8,365.9 11.8 Meals and entertainment deducted......................................................................................................... 4,735.3 5,088.1 7.4 Mortgage interest.......................................................................................................... 5,456.2 5,006.9 -8.2 Other interest paid on business indebtedness.......................................................................................................... 7,053.3 6,432.7 -8.8 Office expenses.......................................................................................................... 10,604.8 11,331.7 6.9 Pension and profit-sharing plans.......................................................................................................... 991.9 1,085.2 9.4 Rent on machinery and equipment......................................................................................................... 8,522.0 8,543.3 0.2 Rent on other business property.......................................................................................................... 25,119.1 26,311.5 4.7 Repairs.......................................................................................................... 12,129.8 12,669.1 4.4 Salaries and wages.......................................................................................................... 63,826.0 66,068.0 3.5 Supplies.......................................................................................................... 23,074.8 24,615.8 6.7 Taxes paid.......................................................................................................... 14,214.1 14,901.4 4.8 Travel.......................................................................................................... 8,657.3 9,110.2 5.2 Utilities.......................................................................................................... 20,482.7 20,674.7 0.9 Other business deductions.......................................................................................................... 94,612.3 96,803.8 2.3 ¹ Includes returns with Schedule C-EZ attached. Because only a total is reported for business deductions on Schedule C-EZ, the totals shown in the statistics exceed the sum of the detailed deductions; the detailed deductions are, therefore, slightly understated. ² Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above. NOTE: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding. when it decreased 1.9 percent to $28.5 billion [7]. For 2002, depreciation increased (in real terms) by 8.0 percent, the largest percentage increase in depreciation since the enactment of TRA86. The 2002 depreciation deductions accounted for 4.5 percent of total business deductions, but remained below the 1985 (pre-TRA86) level of 5.7 percent. Sole Proprietorship Returns, 2002 Figure D Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2002 ¹ Type of expenses Repairs 2.8 Commissions 3.1 Taxes paid 3.3 Insurance 3.5 4.5 Utilities 5.4 Supplies Rent on business property, machinery, and equipment 7.6 Depreciation ² 8.0 11.0 Car and truck expenses 14.5 Salaries and wages 36.3 Other business deductions ³ 0 5 10 15 20 25 30 35 40 Percent of total ¹ Total business expenses equal all business deductions minus cost of sales and operations. ² Depreciation claimed on Form 8829 is included in "home office business deductions" and excluded from "depreciation" shown above. ³ Other business deductions include: advertising expenses; bad debts; depletion; employee benefit programs; interest; legal and professional services; office expenses; pension and profit-sharing plans; travel, meals, and entertainment; and home office business deductions. Other business deductions also include all Schedule C-EZ deductions ($1.4 billion). NOTES: Percents are based on an estimated total business expense of $457.1 billion. Detail may not add to 100 percent because of rounding. Beginning with Tax Year 1992, certain smaller businesses could elect not to itemize depreciation and other business deductions by filing Schedule C-EZ, Net Profit From Business, a simplified version of Schedule C, Profit or Loss From Business. (Schedules C and C-EZ are the source of sole proprietorship statistics.) Taxpayers could use Schedule C-EZ if they: had business expenses of $2,500 or less; used the cash accounting method; had no inventories; did not report a deficit from the business; had only one business as a sole proprietor; had no employees; were not required to file Form 4562, Depreciation and Amortization, for the business; claimed no deduction for home business expenses; and had no prior-year disallowed passive activity losses from the business. Since taxpayers using Schedule C-EZ did not itemize business deductions, the detailed deductions in Table 2 are slightly understated and do not add to the totals. 9 Sole Proprietorship Returns, 2002 Figure E Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2002 [Money amounts are in billions of dollars] Current dollars Tax year Constant dollars ¹ Net income Deficit Depreciation ² (1) (2) (3) Percentage increase in constant dollars ¹ Net income Deficit Depreciation ² Net income Deficit Depreciation ² (9) (4) (5) (6) (7) (8) 1988............................................................................................................. 145.5 19.2 26.1 192.2 25.4 34.5 -- -- -- 1989............................................................................................................. 152.4 19.7 24.5 194.0 25.1 31.2 0.9 -1.1 -9.6 1990............................................................................................................. 161.7 20.2 23.7 198.2 24.8 29.0 2.2 -1.3 -6.9 1991............................................................................................................. 162.4 20.9 23.1 192.3 24.8 27.4 -3.0 (³) -5.8 1992............................................................................................................. 173.5 19.5 23.3 200.8 22.6 27.0 4.4 -8.8 -1.4 1993............................................................................................................. 177.0 20.5 25.0 200.3 23.2 28.3 -0.3 2.8 4.9 1994............................................................................................................. 187.8 21.0 26.2 208.1 23.3 29.0 3.9 0.3 2.6 1995............................................................................................................. 191.7 22.5 26.2 208.2 24.4 28.5 (³) 4.8 -1.9 1996............................................................................................................. 200.1 23.4 27.4 213.2 24.9 29.2 2.4 2.1 2.4 1997............................................................................................................. 210.5 23.8 28.6 220.6 25.0 30.0 3.4 0.3 2.9 1998............................................................................................................. 226.2 23.9 29.1 234.5 24.8 30.2 6.3 -0.7 0.7 1999............................................................................................................. 233.4 25.5 30.6 238.5 26.0 31.3 1.7 4.9 3.7 2000............................................................................................................. 245.2 30.5 32.2 245.2 30.5 32.2 2.8 17.3 2.8 2001............................................................................................................. 250.2 32.8 33.4 244.4 32.0 32.7 -0.3 5.0 1.4 2002............................................................................................................. 257.3 36.2 36.6 247.5 34.8 35.3 1.3 8.7 8.0 ¹ Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000 = 100. ² Excludes depreciation claimed on Form 8829, Expenses for Business Use of Your Home. ³ Less than 0.05 percent. 10 Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. Over 2.7 million taxpayers filed Schedule C-EZ for Tax Year 2002. Of the returns filed for 2002 in the administrative and support services sector (the largest filers of this schedule), taxpayers filed approximately 430 thousand Schedule C-EZ returns, or 24.5 percent of the total for that sector. For 2002, business receipts from Schedule C-EZ filers totaled $16.2 billion, or 1.6 percent of total business receipts reported. However, the business deductions reported on Schedule C-EZ returns accounted for only 0.2 percent of total business deductions for all industries. Even in the administrative and support services sector with its higher concentration of Schedule C-EZ filers, deductions reported on Schedule C-EZ accounted for only 0.6 percent of that sector’s total business deductions. ProfitsandLosses For 2002, a little over half of the principal industrial sectors reported increased sole proprietorship profits (net income less deficit). Figure B presents total 10 profits for all industries (in both current and constant dollars) since 1988, while Figure G presents profits by industrial sector for 2001 and 2002 [8]. Total profits increased 1.7 percent from $217.4 billion for 2001 to $221.1 billion for 2002. Retail trade reported the largest percentage change in profits for 2002, decreasing 20.8 percent to $7.6 billion. Transportation and warehousing reported the second largest percentage decrease in profits with 5.4 percent. The largest percentage increase was for wholesale trade, which showed a 13.7- percent increase in profits for 2002. Finance and insurance had the second largest percentage increase, with 12.9 percent. This was followed by sole proprietors in real estate and rental and leasing who reported increased gains of $2.2 billion, representing a 10.6-percent increase from 2001 levels. Professional, scientific, and technical services, the largest of the industrial sectors with respect to profits, showed a 0.4-percent decrease in profits. In constant dollars, total profits increased 0.2 percent for 2002 (Figure B). Figure E presents net income and deficit separately between 1988 and Sole Proprietorship Returns, 2002 Figure F Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2002 [Money amounts are in millions of dollars] Industrial sector Number of returns Total business receipts With Percentage On Percentage Schedule of Schedule of C-EZ total C-EZ total (2) (3) (5) (6) Total (1) Total (4) Total business deductions ¹ On Total Percentage Schedule of C-EZ total (7) (8) (9) All nonfarm industries.................................................................................................. 18,925,517 2,748,893 14.5 1,029,691.8 16,196.1 1.6 808,900.7 1,390.7 0.2 Construction.................................................................................................. 2,278,208 285,878 1,953.8 1.2 140,389.6 144.8 0.1 Wholesale trade (merchant wholesalers).................................................................................................. 308,015 24,043 7.8 35,488.4 151.6 0.4 30,958.5 10.8 (²) Retail trade.................................................................................................. 2,321,152 171,142 7.4 179,426.5 665.8 0.4 171,836.8 84.3 (²) Transportation and warehousing............... 10.5 54,882.1 552.7 1.0 47,252.0 65.8 0.1 76,355.7 489.5 0.6 60,721.9 21.3 (²) Real estate and rental and leasing.................................................................................................. 1,015,488 58,457 5.8 53,356.5 593.8 1.1 30,768.4 33.2 0.1 2,704.5 2.2 76,381.9 213.3 0.3 949,446 99,288 12.5 Finance and insurance.................................................................................................. 647,338 58,503 9.0 168,481.3 Professional, scientific, and technical services.................................................................................................. 2,672,368 380,980 14.3 124,946.1 Administrative and support and waste management and remediation services.................................................................................................. 1,754,486 429,817 24.5 44,878.4 2,251.1 5.0 32,561.8 200.0 0.6 Health care and social assistance............. 2,406.9 2.5 55,809.8 196.7 0.4 1,722,464 367,942 21.4 97,076.9 Arts, entertainment, and recreation.................................................................................................. 1,105,714 154,810 22,999.0 14.0 633.6 2.8 17,472.2 91.5 0.5 Other services.................................................................................................. 1,968,943 300,858 15.3 72,260.4 1,961.1 2.7 56,844.9 167.7 0.3 All other industries.................................................................................................. 2,181,895 417,175 19.1 99,540.4 1,831.8 1.8 87,903.0 161.3 0.2 ¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. ² Less than 0.05 percent. NOTE: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit for Business. See the text of this article for a full list of the requirements to be eligible to file Schedule C-EZ. Figure G Nonfarm Sole Proprietorship Profits, by Selected Industrial Sectors, Tax Years 2001 and 2002 2002, in current and constant dollars. For 2002, net income (in constant dollars) increased 1.3 percent, and net deficit (in constant dollars) increased 8.7 percent. [Money amounts are in billions of dollars] Net income less deficit (profits) IndustryTrends Using receipts as a measure of business size, Figures A and H show that retail trade was the largest sole (1) (2) (3) proprietorship industrial sector for 2002 with 17.4 All nonfarm industries........................................................................................................................... 217.4 221.1 1.7 percent of all business receipts. Total receipts for Construction........................................................................................................................... 28.5 28.1 -1.5 this sector, at $179.4 billion, were 2.9 percent less Specialty trade contractors........................................................................................................................... 21.7 20.7 -4.7 Wholesale trade (merchant wholesalers)........................................................................................................................... 4.0 4.5 13.7 than the $184.8 billion reported for 2001, while Retail trade........................................................................................................................... 9.6 7.6 -20.8 deductions also decreased by 1.9 percent. This Transportation and warehousing........................................................................................................................... 8.1 7.7 -5.4 Finance and insurance........................................................................................................................... 13.9 15.7 12.9 resulted in a 20.8-percent decline in profits, the Real estate and rental and leasing........................................................................................................................... 20.4 22.6 10.6 largest decrease in profits for all sectors (Figure G). Real estate........................................................................................................................... 20.3 22.4 10.3 Professional, scientific, and The second largest industrial sector was contechnical services........................................................................................................................... 48.8 48.6 -0.4 struction, with receipts totaling $168.5 billion. This Administrative and support and waste amount was 16.4 percent of all sole proprietorship management and remediation services........................................................................................................................... 11.3 12.3 8.9 Health care and social assistance........................................................................................................................... 39.7 41.3 4.0 receipts for 2002, representing a 2.6-percent increase Child day care services........................................................................................................................... 3.4 3.3 -2.8 from the 2001 amount. Deductions increased even Arts, entertainment, and recreation........................................................................................................................... 5.3 5.6 4.1 Performing arts, spectator sports, more, by 3.4 percent. Thus, construction profits and related industries........................................................................................................................... 4.8 5.4 12.5 decreased 1.5 percent for 2002, totaling $28.1 billion. Other services........................................................................................................................... 14.8 15.4 4.3 Special trade contractors reported the largest portion Personal and laundry services........................................................................................................................... 8.8 9.7 9.2 All other industries........................................................................................................................... 12.9 11.7 -9.0 (73.7 percent) of these profits. As a group, special NOTE: Detail may not add to totals because of rounding. Percentage increases trade contractors showed a decrease of 0.5 percent were calculated before rounding. Industrial sector 2001 2002 Percentage increase 11 Sole Proprietorship Returns, 2002 Figure H Nonfarm Sole Proprietorship Total Business Receipts by Selected Industrial Sectors, Tax Year 2002 Arts, entertainment, and recreation 2.2 Wholesale trade (merchant wholesalers) 3.4 Administrative and support and waste management and remediation services 12 4.4 Real estate and rental and leasing 5.2 Transportation and warehousing 5.3 Other services 7.0 Finance and insurance 7.4 Health care and social assistance 9.4 All other industries 9.7 12.1 Professional, scientific, and technical services 16.4 Construction 17.4 Retail trade 0 5 10 15 20 Percent of total NOTES: Percents are based on an estimated total business receipts of $1,029.7 billion. Detail may not add to 100 percent because of rounding. 12 for receipts and a decrease of 4.7 percent for profits. The third largest sector was professional, scientific, and technical services, which accounted for 12.1 percent of sole proprietorship receipts for 2002. Receipts increased 5.2 percent to $124.9 billion, and deductions increased 9.1 percent to $76.4 billion, yielding a decrease in profits of 0.4 percent. Figures G and I also demonstrate that, despite the decline in profits from $48.8 billion in 2001 to $48.6 billion for 2002, professional, scientific, and technical service accounted for the largest percentage of sole proprietorship profits for 2002, with 22.0 percent. The fourth largest sole proprietorship industrial sector with 9.4 percent of total receipts was health care and social assistance. A 3.8-percent increase in receipts for this sector, accompanied by a 3.6-percent increase in deductions, led to an increase in profits of 4.0 percent. This sector had the second largest amount of profits for 2002, reporting 18.7 percent of all sole proprietorship profits. Summary Profits for nonfarm sole proprietorships for Tax Year 2002 grew 1.7 percent to $221.1 billion. In constant Sole Proprietorship Returns, 2002 Figure I Nonfarm Sole Proprietorship Total Business Profits by Selected Industrial Sectors, Tax Year 2002 Wholesale trade (merchant wholesalers) 2.1 Arts, entertainment, and recreation 2.5 Retail trade 3.4 Transportation and warehousing 3.5 All other industries Administrative and support and waste management and remediation services Other services 5.3 5.6 7.0 Finance and insurance 7.1 Real estate and rental and leasing 10.2 Construction 12.7 Health care and social assistance 18.7 Professional, scientific, and technical services 22.0 0 5 10 15 20 25 Percent of total NOTES: Percents are based on an estimated total business profits of $221.1 billion. Detail may not add to 100 percent because of rounding. Profits is a designation for "net income less deficit," shown elsewhere in this article. dollars, total nonfarm sole proprietorship profits increased 0.2 percent. Wholesale trade reported the largest percentage growth in profits at 13.7 percent, while finance and insurance had the second largest percentage increase, at 12.9 percent. Professional, scientific, and technical services had the largest profits of any sector at $48.6 billion, or 22.0 percent of total sole proprietorship profits, followed by health care and social assistance at 18.7 percent. For all sole proprietorships, receipts and deductions increased 1.3 percent and 1.2 percent, respectively. The largest sole proprietorship industrial sector based on business receipts was retail trade, accounting for 17.4 percent of receipts. This sector reported a 20.8-percent decrease in profits. Administrative and support services showed the largest percentage increase in both receipts and deductions, with a 14.1-percent increase in receipts and a 16.2-percent increase in deductions. DataSourcesandLimitations The 2002 sole proprietorship estimates are based on a stratified probability sample of unaudited Individual Income Tax Returns, Form 1040 (including electronically-filed returns), processed by the Internal Revenue Service during Calendar Year 2003. Returns in the sample were stratified based on: (1) the presence or 13 Sole Proprietorship Returns, 2002 Figure J Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial Sectors, Tax Year 2002 [Coefficients of variation are in percentages] Coefficients of variation Industrial sector Total business receipts ¹ Total business deductions Depreciation ² Net income Deficit (2) (3) (4) (5) (1) 0.69 0.76 All nonfarm industries........................................................................................................................... 1.41 0.97 1.80 Construction........................................................................................................................... 2.55 4.05 3.21 6.72 4.89 3.90 8.47 6.02 6.13 Wholesale trade........................................................................................................................... Retail trade........................................................................................................................... 2.34 2.32 10.94 9.56 12.67 4.60 3.68 4.54 3.45 3.50 Transportation and warehousing........................................................................................................................... Finance and insurance........................................................................................................................... 2.95 3.11 5.11 4.78 7.64 8.06 4.65 7.14 Real estate and rental and leasing........................................................................................................................... 3.33 3.32 5.64 4.24 6.93 3.47 Real estate........................................................................................................................... Professional, scientific, and 2.65 Special trade contractors........................................................................................................................... 3.12 3.27 3.43 6.33 4.34 7.73 2.23 2.55 technical services........................................................................................................................... Administrative and support and waste 4.07 2.62 5.74 3.89 4.42 6.61 management and remediation services........................................................................................................................... Health care and social assistance........................................................................................................................... 2.20 2.33 4.01 4.45 8.14 2.64 9.45 14.07 6.40 18.92 4.51 4.46 6.72 Arts, entertainment, and recreation........................................................................................................................... Performing arts, spectator sports, 6.29 6.34 5.09 4.96 and related industries........................................................................................................................... Other services........................................................................................................................... 3.25 3.52 7.68 6.77 7.11 5.31 3.87 7.22 4.36 4.90 Personal and laundry services........................................................................................................................... All other industries........................................................................................................................... 2.80 2.88 8.16 5.20 10.16 3.77 3.76 4.85 Child day care services........................................................................................................................... 5.77 6.95 14 ¹ Positive only. ² Excludes depreciation claimed on Form 8829. absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net Profit From Business, and Schedule F, Farm Income and Expenses; (2) the larger of positive income or negative income (i.e., “adjusted gross income” before statutory adjustments); and (3) tax year. The returns were selected at rates that ranged from 0.05 percent to 100 percent. The 2002 nonfarm sole proprietorship data are based on a sample of 49,752 returns and a population of 18,925,517 returns [9]. The corresponding sample and population for the 2001 data were 51,275 returns and 18,338,190 returns, respectively. Since the data presented in this article are estimates based on a sample of returns filed, they are subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the potential sampling error must be known; coefficients of variation (CV’s) are used to measure that magnitude. Figure J presents estimated coefficients of 14 variation for the number of returns and money amounts for selected items and industrial sectors. Generally, the smaller the coefficient of variation, the more reliable the estimate is judged to be. The Appendix to this issue of the Bulletin discusses the reliability of estimates based on samples, and the use of coefficients of variation for evaluating the precision of estimates based on samples. NotesandReferences [1] Based on the 2002 NAICS system, the full name of the administrative and support services sector is administrative and support and waste management and remediation services sector. The waste management and remediation services portion makes up a small percentage of the overall numbers reported under this classification, which are detailed in Table 1. Sole Proprietorship Returns, 2002 [2] For 2002, the 18,925,517 nonfarm sole proprietorship returns accounted for 20,972,642 nonfarm businesses. Actually, more businesses may have existed than those counted; processing for tax administration purposes allows only three businesses (reported on separate Schedules C) per return, and combines any remaining businesses on one (or more) of the three Schedules C. Statistics of Income--1981, Sole Proprietorship Returns contains a more detailed explanation of the relationship between proprietors and proprietorships. It is estimated that 21,782 individual tax returns have four or more sole proprietorships attached (with an average of 4.61 businesses). For purposes of the statistics, if a proprietor owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a deficit) yielded the profits for a specific industrial group. The North American Industry Classification System (NAICS) was used to classify data by industries for 2002. These classifications were applied on a “per business” (rather than on a “per establishment”) basis for Statistics of Income by combining various industry groups, although businesses were further combined as described above. While the wording of the industry titles used for the sole proprietorship statistics diverges somewhat from titles appearing in NAICS, the definitions are consistent. [3] Statistics for “business receipts, total” in Table 2 represent the total receipts of the business, mainly gross receipts from sales and operations. Business receipts also include miscellaneous business receipts, such as incidental sales of scrap, shown separately in the statistics as “other business income.” However, business receipts exclude incidental investment income received through the business. Examples of such incidental investment income are interest, dividends, income or loss from rents or royalties, and capital or ordinary gain or loss from the sale of investment and business property. Sole proprietors report incidental investment income, in combination with nonbusiness-related investment income, as part of their total incomes on their Individual Income Tax Returns. [4] Based on the overall implicit price deflator for Gross Domestic Product (GDP). See U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, February 2004. Indices used for this article were: Year Indices Year Indices Year Indices 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 75.7 78.6 81.6 84.4 86.4 88.4 90.3 92.1 93.9 95.4 96.5 97.9 100.0 102.4 104.0 105.7 In previous articles, this deflator had 1996 as a base. Resulting from the change in the deflator, some of the year-to-year changes in percentages have been altered. [5] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from business income or loss, which is reported on the attached Schedule C, Profit or Loss From Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid to owners qualify as personal income, not as a business expense, and are, therefore, part of the owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made through the business as personal expenses on Schedule A, Itemized Deductions. However, the owner of a sole proprietorship may choose to deduct any foreign taxes paid as a business expense, unless he or she elects to claim these taxes as a credit against U.S. income tax. [6] Business deductions include home office business deductions. After 1990, home office expenses were calculated separately on Form 8829, Expenses for Business Use of Your Home, and the deductible portion brought 15 Sole Proprietorship Returns, 2002 forward to Schedule C. In some cases, these expenses were limited. Prior to 1990, these expenses were not limited and were included with other expenses, such as depreciation deductions, utilities, and “other” expenses on Schedule C. [7] The increase in the depreciation deduction for 1993 may be attributed, in part, to a provision of the Omnibus Budget Reconciliation Act of 1993 (OBRA93). The cost of certain tangible property (as described in Internal Revenue Code section 179) may be treated as a current expense rather than a capital expenditure subject to depreciation deductions. The provision of OBRA93 (related to these expenses) increased the maximum amount of investment certain small businesses could immediately deduct on property placed in service after 1992, from $10,000 to $17,500. Following the enactment of this provision, the deduction increased 32.4 percent to $13.5 billion for 1993. Again, a change in law increased the “179” depreciation deduction amount to $20,000 for 2000, and $24,000 for 2001 and 2002. [8] Net income minus deficit (loss) before Federal income tax yields profits. Proprietors compute their tax on total “taxable income,” which includes their business profits, plus any other income. [9] The difference between the number of returns in the population and the total number of returns in Tables 1 and 2 is mainly due to returns in which Schedule C income was moved to other income or wages to avoid double counting of taxpayers for Gross Domestic Product calculations. In addition, data from amended returns and tentative returns are not reflected in these statistics. Source: IRS Statistics of Income Bulletin, Summer 2004, Publication 1136 (Rev. 09-2004.) 16 16 Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid Industrial sector Number of returns Business receipts equipment (1) Rent paid Depreciation on machinery 1,2 deduction and (2) (3) on other business 1 property 1 (4) Interest paid 1,3 deduction Payroll 1,4 Net income less deficit (5) (6) (7) (8) 26,311,497 199,992 11,439,538 260,050 96,456,993 1,768,469 221,113,286 735,764 Animal production (including breeding of cats and dogs)........................................................................................................................ 40,892 1,109,069 194,792 2,305 21,933 29,647 103,204 -384,751 Forestry and logging (including forest nurseries, timber tracts)........................................................................................................................ 46,890 5,746,918 580,955 113,379 22,061 117,296 704,287 210,816 Fishing........................................................................................................................ 79,543 2,094,768 342,438 *663 40,167 43,098 139,319 286,388 Hunting and trapping........................................................................................................................ 6,763 304,252 54,778 *873 47,919 4,475 8,521 -6,441 Support activities for agriculture and forestry........................................................................................................................ 130,668 5,540,909 271,225 27,314 Mining........................................................................................................................ 109,851 6,332,751 551,302 39,256 67,911 44,414 65,534 148,115 813,138 340,893 629,753 501,591 195,389 All nonfarm industries........................................................................................................................ 18,925,517 1,029,691,760 37,333,601 8,543,257 Agriculture, forestry, hunting, and fishing........................................................................................................................ 304,757 14,795,915 1,444,188 144,534 Oil and gas extraction........................................................................................................................ 86,387 4,327,809 330,230 6,524 38,346 107,384 161,489 Coal mining........................................................................................................................ *377 *166,733 *10,056 *1,308 *370 *2,640 *14,712 *-5,962 Metal ore mining........................................................................................................................ *2,012 *13,113 *781 *7,545 Nonmetallic mineral mining and quarrying........................................................................................................................ 4,943 644,255 95,718 15,946 *5 1,289 *13 28,981 *5,408 66,407 *-15,478 26,498 301,144 Support activities for mining........................................................................................................................ 16,131 1,180,843 114,516 *7,933 4,404 9,097 92,877 145,838 27,828 *1,763 *2,664 *6,368 *2,112 -15,063 Construction........................................................................................................................ 2,278,208 168,481,326 6,488,543 1,165,225 1,033,265 1,415,454 24,923,553 28,091,981 187,775 69,114 148,496 79,998 318,036 111,248 4,734,447 1,509,840 5,125,165 1,107,241 Utilities........................................................................................................................ 6,913 Residential building construction........................................................................................................................ 376,956 41,608,464 1,161,562 Nonresidential building construction........................................................................................................................ 116,473 10,646,909 426,096 Heavy and civil engineering construction ........................................................................................................................ 76,401 8,620,887 646,353 141,894 93,230 199,388 1,039,329 1,190,535 Specialty trade contractors........................................................................................................................ 1,708,377 107,605,066 4,254,531 766,443 711,541 786,782 17,639,938 20,669,041 Manufacturing........................................................................................................................ 310,319 23,475,114 1,011,812 209,929 677,154 289,408 3,324,229 2,681,496 Food manufacturing........................................................................................................................ 26,753 3,348,106 107,636 Textile and textile product mills........................................................................................................................ 7,680 353,446 *17,661 14,584 *234 134,087 *531 24,928 *1,523 336,152 *9,582 153,396 84,748 Apparel........................................................................................................................ 21,578 35,324 *2,740 26,270 8,366 187,141 106,880 Leather and allied products........................................................................................................................ *3,742 *184,172 *6,795 -- *8,236 *1,362 *42,747 *28,284 29,766 44,163 38,939 298,692 36,181 -38,782 *4,140 101,660 -38,168 *7,288 364,955 *27,419 241,543 989,607 Wood products........................................................................................................................ 31,500 1,829,515 98,375 Paper products........................................................................................................................ *1,091 *90,034 *234 Printing and related support activities........................................................................................................................ 33,646 2,431,531 108,242 Petroleum and coal products........................................................................................................................ *2,369 *2,560 *14 -- -- -- -- *2,170 Chemical manufacturing........................................................................................................................ 10,420 346,224 15,431 *153 *2,397 *4,365 *29,291 64,819 15,595 *1,393 32,207 *7,219 90,962 170,271 8,580 136,129 Plastics, rubber, clay, refractory, and glass products........................................................................................................................ 15,175 681,457 26,126 *4,290 Nonmetallic mineral products........................................................................................................................ 9,172 937,911 49,323 *11,349 Primary metal industries........................................................................................................................ *3,133 *129,020 *9,277 *748 -- *4,123 *14,877 *7,395 Fabricated metal products........................................................................................................................ 28,183 3,406,438 176,749 32,294 104,448 42,467 546,384 271,911 Machinery........................................................................................................................ 18,905 2,740,601 13,545 74,490 32,859 493,156 443,155 *7,376 *15,580 *911 9,126 *33,422 115,974 14,375 258,593 182,703 Computer and electronic products........................................................................................................................ 7,523 234,015 *7,973 *245 Electrical equipment, appliances, and components........................................................................................................................ 9,610 1,001,571 15,446 *3,875 Transportation equipment........................................................................................................................ 9,816 782,649 31,527 *4,934 18,440 6,043 100,269 76,873 Furniture and related products........................................................................................................................ 19,432 1,873,056 53,744 25,641 73,414 12,414 200,382 375,382 Medical equipment and supplies........................................................................................................................ 7,528 366,917 4,666 *7,774 *15,721 *447 *37,653 141,063 Other miscellaneous manufacturing........................................................................................................................ 43,063 1,746,281 64,565 18,977 Wholesale trade (merchant wholesalers)........................................................................................................................ 308,015 35,488,448 550,742 177,744 29,211 362,577 23,942 237,353 245,029 1,098,145 202,603 4,533,573 Durable goods, including machinery, wood, metals, etc......................................................................................................................... 127,951 14,513,169 230,843 86,213 158,115 101,101 518,454 1,690,100 Nondurable goods, including food, fiber, chemicals, etc......................................................................................................................... 106,739 16,123,924 249,106 65,388 149,955 96,012 497,864 1,526,753 Wholesale electronic markets and agents and brokers........................................................................................................................ 73,325 4,851,354 70,794 26,143 54,508 Retail trade........................................................................................................................ 2,321,152 179,426,483 3,442,171 875,069 5,463,005 40,240 1,892,347 81,828 10,328,793 1,316,719 7,609,159 Motor vehicle and parts dealers........................................................................................................................ 154,426 35,100,792 370,189 78,049 439,782 332,336 1,509,422 984,010 Furniture and home furnishing stores........................................................................................................................ 59,826 6,417,067 111,395 17,021 390,977 79,499 575,181 306,677 Electronic and appliance stores........................................................................................................................ 35,449 4,685,056 97,957 13,492 188,651 39,719 458,091 342,114 Building material and garden equipment and suppliers dealers........................................................................................................................ 61,586 8,211,202 326,482 70,953 110,716 Food and beverage stores........................................................................................................................ 107,979 29,683,107 331,444 91,720 763,362 126,595 192,642 766,524 1,739,437 395,406 1,262,065 546,355 Health and personal care stores........................................................................................................................ 144,361 7,561,901 102,771 49,531 176,154 32,031 441,197 Gasoline stations........................................................................................................................ 22,257 19,588,277 253,070 44,757 296,686 223,359 961,303 241,862 Clothing and accessories stores........................................................................................................................ 104,648 11,611,377 156,228 131,938 856,950 88,151 930,756 1,013,522 Sporting goods, hobby, book, and music stores........................................................................................................................ 122,570 8,727,842 171,288 24,994 General merchandise stores........................................................................................................................ 32,616 4,039,570 130,957 15,168 446,250 164,261 142,240 50,005 429,938 315,635 553,604 55,628 Miscellaneous store retailers........................................................................................................................ 518,968 26,854,146 675,046 238,236 1,320,918 407,039 1,662,608 1,378,497 Nonstore retailers........................................................................................................................ 956,464 16,946,146 99,211 308,298 178,730 538,700 529,419 715,343 Footnotes at end of table. 17 Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Industrial sector Number of returns Business receipts (1) (2) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (3) Payroll 1,4 Net income less deficit (4) (5) (6) (7) (8) 1,756,537 540,310 1,178,404 3,670,253 7,655,096 Air and rail transportation........................................................................................................................ 14,644 844,648 275,025 Water transportation........................................................................................................................ 5,305 233,492 52,574 9,032 *20,910 23,501 *605 31,559 11,824 45,827 *3,398 -170,952 35,022 General freight trucking, local........................................................................................................................ 212,491 14,549,941 1,529,392 General freight trucking, long-distance and specialized freight trucking........................................................................................................................ 318,377 27,218,179 2,863,178 324,254 99,275 303,066 1,456,836 1,895,147 757,865 138,684 643,534 1,435,231 3,121,167 *5,679 -- *24 -- -*2,576 *13,503 *98 *-1,499 *5,945 Taxi and limousine service........................................................................................................................ 120,451 3,218,289 118,975 398,354 School, employee, and charter bus industry........................................................................................................................ 17,320 782,176 106,532 *59,866 124,032 *6,368 64,518 16,529 71,657 70,996 941,651 142,317 Other transit and ground passenger transportation........................................................................................................................ 18,183 584,806 35,104 *5,947 Pipeline transportation........................................................................................................................ ** ** ** ** *2,324 ** *20,736 ** *50,767 ** 134,919 ** Scenic and sightseeing transportation........................................................................................................................ **5,268 **302,072 **57,852 Support activities for transportation (including motor **5,732 **9,256 **12,477 **42,437 **-35,514 vehicle towing)........................................................................................................................ 39,172 1,699,712 151,339 Couriers and messengers........................................................................................................................ 187,367 5,003,100 120,049 Warehousing and storage facilities........................................................................................................................ 7,560 314,587 22,601 41,086 127,286 *527 76,783 30,727 28,731 36,815 30,299 *4,472 233,154 225,485 20,862 158,515 1,404,463 23,916 Information........................................................................................................................ 223,398 6,469,180 369,484 114,849 Publishing industries (except internet)........................................................................................................................ 67,679 2,110,691 78,601 16,193 177,400 23,694 59,077 25,830 547,079 243,215 1,237,526 512,093 Motion picture and sound recording........................................................................................................................ 63,873 2,349,588 207,466 69,778 89,691 Broadcasting (except internet) and telecommunications........................................................................................................................ 24,231 863,852 43,393 14,902 49,528 13,579 8,954 99,367 47,839 302,091 152,163 Internet publishing and broadcasting........................................................................................................................ 8,214 157,231 *265 Internet service providers, web search portals, and *89 *2,581 -- *129 71,739 13,887 317,535 11,906 1,344,623 10,713 522,079 156,529 3,634,592 199,440 15,666,392 92,035 242,886 214,952 879,419 1,294,175 2,758,902 11,748 34,630 66,221 11,015 9,762 14,407 38,133 123,801 19,960 183,901 569,394 -45,512 Securities and commodity exchanges........................................................................................................................ 1,434 903,243 169 *2,666 *2,618 Other financial investment activities (investment advice)........................................................................................................................ 108,676 33,767,183 123,138 47,598 241,273 1,321 206,382 *3,733 693,792 -36,989 2,088,108 909,213 822,307 187,158 172,201 2,540,221 2,353,145 11,613,315 9,498,483 23,861 507,123 86,906 906,688 14,957 896,289 187,076 1,286,319 2,114,832 22,581,125 data processing........................................................................................................................ 59,401 987,817 39,759 Finance and insurance........................................................................................................................ 647,338 76,355,733 904,291 Credit intermediation and related activities........................................................................................................................ 86,075 4,579,176 138,380 37,720 78,919 Securities, commodity contracts, and other financial investments........................................................................................................................ 146,480 43,546,489 167,435 63,072 356,490 Investment bankers and securities dealers........................................................................................................................ 6,628 3,380,363 12,740 *4,779 Securities brokers........................................................................................................................ 22,223 4,877,845 20,455 4,740 Commodity contracts brokers and dealers........................................................................................................................ 7,519 617,854 10,933 *3,288 Insurance agents, brokers, and related activities........................................................................................................................ 414,783 28,230,069 598,476 216,744 Insurance agencies and brokerages........................................................................................................................ 327,538 24,000,354 514,937 192,883 Other insurance related activities........................................................................................................................ 87,245 4,229,715 83,539 Real estate and rental and leasing........................................................................................................................ 1,015,488 53,356,496 2,567,610 Real estate........................................................................................................................ 960,101 49,307,383 Lessors of real estate (including miniwarehouses and 1,582,447 436,507 746,095 729,795 1,005,327 22,375,706 self storage)........................................................................................................................ 41,841 2,249,224 Offices of real estate agents, brokers, property managers, and appraisers........................................................................................................................ 790,081 40,177,187 175,949 21,248 95,412 195,325 100,553 590,285 1,212,514 366,536 576,924 390,627 733,984 19,711,435 48,723 70,616 73,759 160,593 143,843 166,494 170,791 280,991 2,073,987 205,419 Automotive equipment rental and leasing........................................................................................................................ 12,009 705,498 164,140 16,589 Consumer electronics and appliances rental........................................................................................................................ *1,126 *17,906 *4,258 -- 24,027 *209 32,228 *1,094 24,157 *803 38,703 *-2,451 Formal wear and costume rental........................................................................................................................ ---Video tape and disc rental........................................................................................................................ 7,515 769,636 116,413 -84,354 -11,764 -91,580 -47,988 General rental centers and other consumer goods rental........................................................................................................................ 13,957 900,787 118,771 4,617 33,701 Commercial and industrial machinery 24,039 79,831 53,813 18,302 3,334,003 1,466,327 97,369 987,508 228,773 84,621 10,696,572 3,584,194 67,367 48,637,019 14,485,178 25,813 52,235 188,249 227,526 66,864 106,983 562,219 793,372 1,383,609 2,821,179 Architectural, engineering, and related services........................................................................................................................ 269,399 13,597,895 499,694 120,209 Architectural services........................................................................................................................ 99,765 6,599,771 263,469 74,649 248,391 135,369 95,762 59,936 1,872,933 1,181,430 4,220,196 1,364,069 Engineering services........................................................................................................................ 97,764 5,016,863 146,247 32,843 67,441 Drafting, building inspections, and geophysical surveying........................................................................................................................ 52,712 1,389,703 61,983 9,912 27,713 22,141 10,832 475,986 145,618 2,032,128 613,172 Surveying and mapping (except geophysical) services........................................................................................................................ 16,955 496,192 22,505 *210 *11,465 Testing laboratories........................................................................................................................ *2,204 *95,367 *5,490 *2,595 *6,403 Specialized design services........................................................................................................................ 182,932 6,231,194 213,451 43,734 120,421 *1,621 *1,231 56,692 *63,205 *6,693 284,613 182,872 *27,956 1,641,313 Other activities related to real estate........................................................................................................................ 128,178 6,880,973 193,985 Rental and leasing services........................................................................................................................ 55,388 4,049,112 985,162 -*836 and equipment rental and leasing........................................................................................................................ 20,782 1,655,286 581,581 48,575 Professional, scientific, and technical services........................................................................................................................ 2,672,368 124,946,059 3,775,339 890,239 Legal services........................................................................................................................ 356,895 33,827,841 554,579 203,304 Office of certified public accountants........................................................................................................................ 48,319 3,603,525 142,374 Other accounting services........................................................................................................................ 317,826 7,641,542 329,003 18 Interest paid 1,3 deduction Transportation and warehousing........................................................................................................................ 949,446 54,882,098 5,347,460 Urban transit........................................................................................................................ *1,362 *59,244 *5,437 Interurban and rural bus transportation........................................................................................................................ *1,946 *71,854 *9,401 18 Rent paid on other business 1 property Footnotes at end of table. Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with and without net income Rent paid on other business 1 property Interest paid 1,3 deduction Payroll (4) (5) (6) (7) 41,942 97,811 39,313 318,768 3,216,437 Other professional, scientific, and technical services........................................................................................................................ 1,262,728 52,848,149 1,820,682 403,002 985,278 Management, scientific, and technical consulting services........................................................................................................................ 661,791 27,162,068 852,697 205,017 423,890 393,120 179,378 3,280,475 1,043,503 20,869,105 13,206,191 Industrial sector Number of returns Business receipts (1) (2) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (3) 1,4 Net income less deficit (8) Professional, scientific, and technical service --Continued Computer systems design services........................................................................................................................ 234,269 7,195,912 215,556 Scientific research and development services........................................................................................................................ 32,308 1,084,712 28,345 9,417 10,553 13,411 66,182 483,599 Advertising and related services........................................................................................................................ 114,741 5,910,410 151,083 133,583 41,025 458,915 1,467,916 56,198 Market research and public opinion polling........................................................................................................................ 39,278 1,556,546 73,963 24,047 38,632 4,604 125,790 527,717 Other miscellaneous services........................................................................................................................ 414,610 17,134,413 714,595 Administrative and support and waste management 108,323 378,619 154,703 1,586,084 5,183,683 and remediation services........................................................................................................................ 1,754,486 44,878,393 2,079,010 404,722 563,683 395,994 5,334,233 12,318,639 Administrative and support services........................................................................................................................ 1,723,807 43,582,389 1,971,535 391,418 549,198 365,285 5,199,730 12,183,976 Waste management and remediation services........................................................................................................................ 30,679 1,296,004 107,475 13,304 Educational services........................................................................................................................ 395,839 5,023,159 233,264 37,510 14,485 251,914 30,709 32,239 134,503 338,282 134,663 1,820,693 41,265,821 Health care and social assistance........................................................................................................................ 1,722,464 97,076,912 2,646,028 566,916 3,864,937 946,246 13,458,569 Ambulatory health care services........................................................................................................................ 842,263 83,147,994 2,133,408 493,468 3,546,741 708,906 11,956,598 36,524,364 Offices of physicians (except mental health specialist)........................................................................................................................ 192,326 29,436,364 543,928 179,905 1,065,418 156,487 3,663,409 14,816,436 160,587 14,763 145,552 1,641,751 Offices of dentists........................................................................................................................ 96,416 27,851,174 873,691 Offices of chiropractors........................................................................................................................ 39,517 4,516,425 155,544 Offices of physicians, mental health specialist........................................................................................................................ 36,686 2,815,453 56,242 12,045 128,181 31,176 1,032,603 316,343 323,652 61,138 5,851,695 548,449 10,452,530 1,766,324 Offices of optometrists........................................................................................................................ 11,412 2,621,749 80,699 27,568 169,386 33,155 481,053 650,640 Offices of mental health practitioners and social therapists........................................................................................................................ 161,541 7,289,102 170,800 23,319 503,322 37,011 454,332 3,670,175 Offices of podiatrists........................................................................................................................ 7,676 996,776 5,017 101,500 374,390 1,214,679 19,643 89,942 Outpatient care centers and other miscellaneous health practitioners........................................................................................................................ 98,592 2,797,373 85,404 28,757 17,356 107,279 9,202 136,381 Medical and diagnostic laboratories........................................................................................................................ 28,085 1,750,269 49,134 20,819 43,303 19,533 272,088 583,016 Home health care services........................................................................................................................ 147,666 2,387,180 85,528 12,616 29,689 41,976 197,981 1,085,234 Other ambulatory health care services (including ambulance services, blood and organ banks)........................................................................................................................ 22,344 686,131 15,082 9,438 28,868 6,974 104,159 269,188 *966 *1,577 *1,600 *25,244 154,695 Nursing and residential care facilities........................................................................................................................ 52,359 2,641,194 98,293 18,695 59,306 133,541 655,996 384,290 Social assistance…………….......................................................................................................................... 137,509 2,076,318 58,154 5,430 76,024 12,908 142,414 876,189 Child day care services........................................................................................................................ 676,991 8,913,642 354,580 Arts, entertainment, and recreation........................................................................................................................ 1,105,714 22,998,961 1,577,102 48,356 172,870 181,289 729,613 89,291 252,511 678,317 1,059,526 3,326,283 5,568,237 Performing arts, spectator sports, and related industries........................................................................................................................ 946,141 17,861,397 1,179,120 109,027 495,691 Hospitals……………......................................................................................................................... 13,342 297,764 *1,592 125,749 573,684 5,420,659 *18 -- *1,940 *51,729 Amusement, gambling, and recreation industries........................................................................................................................ 156,233 5,041,480 397,140 61,478 233,903 Accommodation, food services, and drinking places........................................................................................................................ 362,149 36,733,209 1,531,040 294,946 2,156,805 126,762 956,699 483,902 6,546,711 95,848 1,609,451 Museums, historical sites, and similar institutions........................................................................................................................ *3,340 *96,084 *842 *2,365 Accommodation………….......................................................................................................................... 64,053 5,008,383 602,732 25,039 143,381 583,439 687,300 159,956 22,369 81,879 482,052 494,988 16,641 RV (recreational vehicle) parks and recreational camps........................................................................................................................ 14,532 679,975 112,624 *1,289 *7,419 55,785 39,530 51,981 Travel accommodation (including hotels, motels, and bed and breakfast inns)………………........................................................................................................................ 30,381 3,505,412 445,089 Rooming and boarding houses........................................................................................................................ 19,139 822,996 45,019 Food services and drinking places........................................................................................................................ 298,097 31,724,826 928,308 *1,380 269,907 *54,083 2,013,424 45,601 373,261 152,781 5,859,412 91,333 1,449,495 2,657,699 814,894 4,571,609 940,476 7,864,314 15,440,454 Auto repair and maintenance........................................................................................................................ 315,701 23,189,427 922,388 249,792 804,199 337,330 3,318,796 2,567,473 113,338 102,683 371,064 199,633 136,181 135,941 1,704,500 1,142,455 1,210,637 1,025,294 Other services........................................................................................................................ 1,968,943 72,260,435 Automotive mechanical and electrical repair and maintenance........................................................................................................................ 150,280 11,611,478 403,227 Automotive body shops........................................................................................................................ 105,775 8,071,336 356,521 Other auto repair and maintenance (including oil change, lubrication, and car washes)........................................................................................................................ 59,646 3,506,613 162,641 33,772 233,502 65,209 471,841 331,543 Miscellaneous repairs........................................................................................................................ 428,093 15,650,487 599,952 113,697 405,011 177,385 1,346,752 3,207,170 Personal and laundry services........................................................................................................................ 1,225,149 33,420,520 1,135,359 Religious, grantmaking, civic, professional 451,405 3,362,400 425,761 3,198,765 9,665,811 and similar organizations........................................................................................................................ 256,606 3,008,913 75,900 *11,684 22,170 17,716 *9,324 1,767,093 Unclassified establishments........................................................................................................................ 212,063 3,556,337 52,791 39,911 64,671 5,206 225,025 1,407,239 Footnotes at end of table. 19 Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts (9) (10) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (11) Payroll 1,4 Net income (12) (13) (14) (15) (16) 20,538,942 7,206,944 78,488,415 257,292,855 Agriculture, forestry, hunting, and fishing........................................................................................................................ 197,650 10,652,161 658,225 110,318 2,019,565 92,701 140,994 1,354,493 Animal production (including breeding of cats and dogs)........................................................................................................................ 10,209 684,203 30,187 *306 *8,187 *4,220 69,749 95,349 Forestry and logging (including forest nurseries, timber tracts)........................................................................................................................ 32,879 4,506,913 342,611 92,161 14,899 Fishing........................................................................................................................ 50,141 1,650,449 156,160 *564 28,437 73,669 27,370 538,748 *100,614 459,597 491,579 Hunting and trapping........................................................................................................................ *5,131 *191,091 -- *921 *1,561 *1,012 *31,323 Support activities for agriculture and forestry........................................................................................................................ 99,290 3,619,505 99,021 17,285 40,256 34,173 644,369 941,716 Mining........................................................................................................................ 78,609 4,399,347 *30,245 310,433 17,137 22,718 42,815 184,190 1,313,837 Oil and gas extraction........................................................................................................................ 60,823 2,849,690 159,145 Coal mining........................................................................................................................ *33 *4,875 *105 4,709 -- 20,245 -- 13,812 *1 74,169 -- 920,078 *303 Metal ore mining........................................................................................................................ ** ** ** ** ** ** ** Nonmetallic mineral mining and quarrying........................................................................................................................ **4,053 **482,215 **59,742 **6,497 ** **177 **21,883 **33,947 **69,592 Support activities for mining........................................................................................................................ 13,700 1,062,567 91,441 Utilities........................................................................................................................ 5,765 139,348 *5,968 *5,931 *1,750 *2,296 *2,651 7,119 *584 76,076 *2,084 323,864 25,476 Construction........................................................................................................................ 1,889,207 147,764,155 4,946,321 939,913 847,317 965,095 20,373,879 31,457,464 Residential building construction........................................................................................................................ 310,103 36,614,451 908,140 165,484 115,704 192,099 3,971,826 5,956,035 Nonresidential building construction........................................................................................................................ 87,001 8,422,109 289,180 46,957 59,236 70,890 1,094,919 1,359,667 Heavy and civil engineering construction ........................................................................................................................ 60,980 7,471,556 478,962 123,906 90,474 128,893 900,614 1,428,975 603,567 172,230 581,903 463,883 573,213 185,113 14,406,520 2,572,448 22,712,786 3,573,825 Specialty trade contractors........................................................................................................................ 1,431,123 95,256,039 3,270,038 Manufacturing........................................................................................................................ 205,279 19,898,393 728,355 Food manufacturing........................................................................................................................ 13,595 2,670,512 57,420 6,130 69,286 11,344 194,610 266,509 Textile and textile product mills........................................................................................................................ *5,121 *325,133 *12,132 *234 -- *874 *9,582 *108,696 Apparel........................................................................................................................ 15,158 803,081 26,078 *943 19,015 7,011 132,423 140,153 Leather and allied products........................................................................................................................ *3,398 *179,292 *6,795 Wood products........................................................................................................................ 17,026 1,518,301 55,961 -26,773 *8,236 16,700 *1,362 20,563 *42,747 208,187 *29,627 208,655 Paper products........................................................................................................................ *1,083 *90,034 -- *4,140 -- *7,288 *27,445 Printing and related support activities........................................................................................................................ 24,274 1,897,365 77,180 32,891 *234 62,099 23,183 236,361 297,999 Petroleum and coal products........................................................................................................................ *2,354 *2,506 -- -- Chemical manufacturing........................................................................................................................ 7,584 318,107 *14,861 *153 Plastics, rubber, clay, refractory, and glass products........................................................................................................................ 10,242 579,742 *15,976 *3,756 20 Interest paid 1,3 deduction 6,690,732 All nonfarm industries........................................................................................................................ 13,750,798 871,015,286 25,432,022 20 Rent paid on other business 1 property -- -- -- *2,422 *1,134 *7,318 *4,304 *27,806 *25,789 *86,895 67,832 88,089 142,123 Nonmetallic mineral products........................................................................................................................ 8,934 875,998 *46,077 *9,395 *504 *6,671 *160,471 Primary metal industries........................................................................................................................ *2,126 *105,795 *4,076 *644 -- -- *3,962 *36,760 Fabricated metal products........................................................................................................................ 19,772 2,893,919 123,052 29,276 81,310 24,162 450,006 373,917 Machinery........................................................................................................................ 15,996 2,552,672 173,366 Computer and electronic products........................................................................................................................ *4,036 *157,699 *5,558 13,213 -- 62,732 *4,110 28,331 *142 426,976 *16,894 474,210 *47,330 Electrical equipment, appliances, and components........................................................................................................................ 9,593 936,431 13,504 *3,666 *14,308 *7,276 *99,779 263,514 Transportation equipment........................................................................................................................ 6,362 660,350 *16,223 *4,902 *17,363 *4,077 *75,459 136,025 Furniture and related products........................................................................................................................ 15,367 1,767,385 44,182 23,496 62,685 7,491 189,324 396,934 Medical equipment and supplies........................................................................................................................ 3,475 342,270 *3,158 Other miscellaneous manufacturing........................................................................................................................ 19,782 1,221,800 32,522 *7,743 *9,014 *12,388 20,556 *157 10,360 *31,011 174,684 156,725 308,859 Wholesale trade (merchant wholesalers)........................................................................................................................ 209,627 31,092,450 391,448 135,578 283,355 151,641 842,037 5,315,422 Durable goods, including machinery, wood, metals, etc......................................................................................................................... 82,966 12,681,041 145,662 63,975 115,922 56,194 382,502 2,086,022 Nondurable goods, including food, fiber, chemicals, etc......................................................................................................................... 73,367 13,979,303 178,994 47,003 123,718 60,166 392,789 1,770,115 Wholesale electronic markets and agents and brokers........................................................................................................................ 53,294 4,432,106 66,792 24,600 43,715 Retail trade........................................................................................................................ 1,183,058 144,868,119 1,919,123 561,589 3,670,610 35,282 1,123,584 66,747 7,883,789 1,459,285 14,670,457 Motor vehicle and parts dealers........................................................................................................................ 91,278 28,285,838 234,354 34,988 296,676 213,620 1,145,742 1,619,711 Furniture and home furnishing stores........................................................................................................................ 33,080 5,078,659 75,769 13,908 211,502 51,671 438,837 612,732 Electronic and appliance stores........................................................................................................................ 25,178 4,311,693 79,745 4,755 146,294 23,465 391,503 496,701 Building material and garden equipment and suppliers dealers........................................................................................................................ 39,432 6,882,552 195,186 23,881 67,923 Food and beverage stores........................................................................................................................ 75,462 26,102,214 244,071 61,583 631,636 89,451 149,867 627,117 1,449,755 736,883 1,559,003 910,696 Health and personal care stores........................................................................................................................ 68,439 7,064,929 71,003 41,185 162,065 23,791 432,128 Gasoline stations........................................................................................................................ 13,773 14,851,546 160,268 30,892 224,809 141,250 705,566 398,979 Clothing and accessories stores........................................................................................................................ 66,051 9,610,975 87,446 120,991 604,968 52,864 704,524 1,361,738 Sporting goods, hobby, book, and music stores........................................................................................................................ 67,725 6,618,263 95,857 13,686 General merchandise stores........................................................................................................................ 18,320 2,901,729 34,790 *5,510 299,866 103,799 87,626 17,679 287,599 220,722 881,916 249,168 Miscellaneous store retailers........................................................................................................................ 265,242 20,504,369 349,735 160,671 747,869 191,259 1,102,647 3,163,010 Nonstore retailers........................................................................................................................ 419,079 12,655,352 49,539 173,204 81,041 377,647 2,679,920 Footnotes at end of table. 290,900 Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts (9) (10) Rent paid Depreciation on machinery 1,2 deduction and 1 equipment (11) Rent paid on other business 1 property Interest paid 1,3 deduction Payroll 1,4 Net income (12) (13) (14) (15) (16) Transportation and warehousing........................................................................................................................ 759,115 44,998,421 3,525,373 1,400,941 445,014 848,879 2,766,575 9,594,520 Air and rail transportation........................................................................................................................ 9,555 419,768 28,005 Water transportation........................................................................................................................ 3,665 142,229 *2,678 General freight trucking, local........................................................................................................................ 161,276 11,466,303 1,078,007 *3,253 *14 223,487 *8,350 *269 73,518 2,350 *1,554 220,540 *23,441 *2,071 1,111,339 122,554 86,279 2,373,358 General freight trucking, long-distance and specialized freight trucking........................................................................................................................ 252,976 22,296,418 Urban transit........................................................................................................................ *969 *23,778 583,410 *5,679 107,602 *24 487,189 -- 1,053,228 *10,670 3,792,120 *656 Interurban and rural bus transportation........................................................................................................................ *1,946 *71,854 *9,401 -Taxi and limousine service........................................................................................................................ 106,984 2,889,313 90,862 371,675 School, employee, and charter bus industry........................................................................................................................ 13,977 645,021 69,326 *51,887 Other transit and ground passenger transportation........................................................................................................................ 16,671 536,104 29,535 *4,051 -120,198 *3,676 *2,324 *2,576 51,116 *6,759 *19,762 *98 *35,739 *54,598 *38,505 *5,945 994,801 175,060 154,345 Pipeline transportation........................................................................................................................ ** ** ** Scenic and sightseeing transportation........................................................................................................................ **1,653 **197,165 **24,408 Support activities for transportation (including motor ** **5,724 ** **5,879 ** **1,395 ** **39,985 ** **32,967 28,749 122,949 *63 99,707 67,830 30,390 *24,955 131,502 28,347 27,217 *74 39,501 185,221 206,022 *5,660 460,498 279,289 1,511,449 65,699 1,730,766 14,328 65,227 19,883 51,423 18,712 9,625 200,194 76,417 607,295 526,225 Broadcasting (except Internet) and telecommunications........................................................................................................................ 16,134 747,579 36,470 *13,154 47,347 Internet publishing and broadcasting........................................................................................................................ 5,318 145,004 *262 *89 *1,766 Internet service providers, web search portals, and data processing........................................................................................................................ 36,243 913,585 16,305 *6,908 11,083 *6,221 -- *30,911 *129 182,607 75,601 *4,944 152,847 339,038 Finance and insurance........................................................................................................................ 458,193 47,782,386 742,659 271,043 1,138,597 Credit intermediation and related activities........................................................................................................................ 60,152 4,168,227 118,133 22,336 55,087 Securities, commodity contracts, and other financial investments........................................................................................................................ 81,380 17,364,043 113,438 51,012 232,779 258,731 23,261 76,421 2,992,034 178,516 455,960 18,000,755 1,595,418 3,951,082 4,610 25,918 *2,184 5,637 8,053 *6,216 32,561 46,331 *2,503 260,305 628,732 105,760 Securities and commodity exchanges........................................................................................................................ *176 *116,542 *9 *2,664 *(Z) Other financial investment activities (investment advice)........................................................................................................................ 62,354 13,354,322 93,954 42,020 200,067 Insurance agents, brokers, and related activities........................................................................................................................ 316,661 26,250,115 511,088 197,694 850,731 *563 55,952 159,049 *3,161 371,404 2,357,558 *1,547 2,954,739 12,454,256 771,161 79,570 726,489 596,185 147,645 11,404 442,132 389,800 2,185,337 172,222 1,019,940 786,505 10,208,086 2,246,170 24,622,697 24,011,265 18,598 42,247 69,644 55,982 781,639 and appraisers........................................................................................................................ 605,891 38,196,674 986,480 328,502 Other activities related to real estate........................................................................................................................ 98,061 5,974,855 130,359 42,386 Rental and leasing services........................................................................................................................ 31,704 3,165,968 493,079 62,967 503,193 50,744 130,304 263,657 56,499 52,332 631,419 99,104 233,435 20,730,702 2,498,923 611,433 Automotive equipment rental and leasing........................................................................................................................ 7,148 399,968 96,725 *16,460 Consumer electronics and appliances rental........................................................................................................................ *152 *7,098 *1,154 -Formal wear and costume rental........................................................................................................................ ----- *13,467 *180 -- 6,902 *436 -- *17,399 --- 86,142 *821 -- Video tape and disc rental........................................................................................................................ 5,366 726,430 105,456 *825 80,028 General rental centers and other consumer goods rental........................................................................................................................ 7,710 835,449 69,983 *4,508 *22,440 Commercial and industrial machinery and equipment rental and leasing........................................................................................................................ 11,328 1,197,024 219,761 41,174 14,189 *9,731 6,714 84,206 73,165 81,275 134,738 1,990,922 -- vehicle towing)........................................................................................................................ 27,123 1,415,428 102,803 Couriers and messengers........................................................................................................................ 156,025 4,628,201 91,459 Warehousing and storage facilities........................................................................................................................ 6,294 266,838 *7,967 Information........................................................................................................................ 140,314 5,290,620 228,195 Publishing industries (except Internet)........................................................................................................................ 47,453 1,864,522 59,158 Motion picture and sound recording........................................................................................................................ 35,166 1,619,930 116,000 Investment bankers and securities dealers........................................................................................................................ 4,641 1,254,486 7,760 *1,885 Securities brokers........................................................................................................................ 12,094 2,351,312 10,627 4,133 Commodity contracts brokers and dealers........................................................................................................................ 2,115 287,381 1,087 *310 Insurance agencies and brokerages........................................................................................................................ 248,051 22,277,120 441,572 174,898 Other insurance related activities........................................................................................................................ 68,610 3,972,996 69,516 22,796 Real estate and rental and leasing........................................................................................................................ 758,224 49,025,678 1,678,958 452,453 Real estate........................................................................................................................ 726,520 45,859,710 1,185,879 389,486 Lessors of real estate (including miniwarehouses and self storage)........................................................................................................................ 22,568 1,688,181 Offices of real estate agents, brokers, property managers, 69,039 28,549 58,665 308,457 Professional, scientific, and technical services........................................................................................................................ 1,966,091 114,177,515 2,795,190 708,166 Legal services........................................................................................................................ 292,060 32,394,696 478,633 183,997 Office of certified public accountants........................................................................................................................ 39,963 3,464,588 116,195 25,710 2,766,322 1,296,675 174,092 709,512 205,459 48,766 9,116,498 3,236,012 526,208 53,156,697 14,951,921 1,440,995 Other accounting services........................................................................................................................ 250,642 6,888,279 272,372 36,842 Architectural, engineering, and related services........................................................................................................................ 199,965 12,657,305 419,190 109,157 Architectural services........................................................................................................................ 75,568 6,190,365 225,994 70,549 209,597 204,958 117,328 85,767 70,239 44,832 706,119 1,738,344 1,076,009 3,046,759 4,597,500 1,535,252 Engineering services........................................................................................................................ 71,077 4,560,237 121,761 29,690 52,179 Drafting, building inspections, and geophysical surveying........................................................................................................................ 38,043 1,361,599 44,349 6,114 27,517 Surveying and mapping (except geophysical) services........................................................................................................................ 14,063 453,697 21,821 *210 *4,234 Testing laboratories........................................................................................................................ *1,214 *91,407 *5,266 *2,595 *3,699 Specialized design services........................................................................................................................ 116,763 5,674,487 147,803 26,504 98,607 12,261 10,832 *1,139 *1,173 20,893 450,389 145,059 *61,347 *5,540 230,176 2,189,877 647,570 190,378 *34,423 1,944,931 Footnotes at end of table. 21 Sole Proprietorship Returns, 2002 Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net Income, by Industrial Sectors Classified with the North American Industry Classification System-Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Businesses with net income Industrial sector Number of returns Business receipts (9) (10) Rent paid Depreciation on machinery deduction 1,2 and equipment 1 (11) (12) Rent paid on other business property 1 Interest paid deduction 1,3 Payroll (13) (14) (15) (16) 1,4 Net income Professional, scientific, and technical service 22 --Continued Computer systems design services........................................................................................................................ 155,396 6,269,873 121,793 23,836 56,698 Other professional, scientific, and technical services........................................................................................................................ 911,302 46,828,286 1,239,203 302,119 725,695 Management, scientific, and technical consulting services........................................................................................................................ 473,378 23,727,961 556,208 136,750 299,518 Scientific research and development services........................................................................................................................ 25,008 972,665 18,859 9,302 *5,045 Advertising and related services........................................................................................................................ 82,491 4,872,770 85,304 34,084 79,588 Market research and public opinion polling........................................................................................................................ 25,763 1,415,676 26,999 24,047 35,114 Other miscellaneous services........................................................................................................................ 304,661 15,839,214 551,833 97,937 306,431 Administrative and support and waste management and remediation services........................................................................................................................ 1,395,546 38,818,344 1,483,739 318,978 445,883 Administrative and support services........................................................................................................................ 1,378,122 37,704,327 1,399,994 306,586 433,146 12,494 265,894 113,758 *1,776 23,278 4,604 122,478 224,005 2,455,635 558,000 *40,908 287,148 108,757 1,460,823 3,672,335 23,502,256 14,636,878 597,468 1,734,936 621,698 5,911,276 256,918 229,468 4,094,704 3,999,890 14,205,261 13,987,597 Waste management and remediation services........................................................................................................................ 17,424 1,114,017 83,745 *12,392 Educational services........................................................................................................................ 306,372 4,367,573 176,474 33,842 12,736 194,461 27,450 12,148 94,814 216,304 217,664 2,163,001 Health care and social assistance........................................................................................................................ 1,448,909 91,937,046 2,259,814 473,549 3,541,559 Ambulatory health care services........................................................................................................................ 706,898 80,512,898 1,939,040 425,917 3,340,247 Offices of physicians (except mental health specialist)........................................................................................................................ 160,449 28,311,025 497,822 147,745 982,954 Offices of physicians, mental health specialist........................................................................................................................ 33,245 2,782,448 53,966 11,937 158,518 Offices of dentists........................................................................................................................ 91,604 27,633,290 859,786 127,001 1,018,856 Offices of chiropractors........................................................................................................................ 36,088 4,408,460 139,099 28,985 300,023 Offices of optometrists........................................................................................................................ 8,335 2,556,239 71,266 26,027 156,882 Offices of mental health practitioners and social therapists........................................................................................................................ 129,248 6,936,947 147,866 21,909 467,502 Offices of podiatrists........................................................................................................ [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A59a8a35eeb5c725d. Public record. Not legal advice.