Sole Proprietorship Returns, 2004

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Sole Proprietorship Returns, 2004

by Kevin Pierce and Michael Parisi

F

or Tax Year 2004, there were approximately

20.6 million individual income tax returns that

reported nonfarm sole proprietorship activity.

Nearly every sole proprietor industrial sector reported

an increase in profits. Total profits for all nonfarm

sole proprietorships were $247.6 billion, a 7.5-percent

increase from Tax Year 2003. When adjusted for

inflation, profits increased by 4.4 percent, the highest

percentage increase in profits since 1998. The

largest percentage increase in profits for a major

industrial sector was 18.3 percent for the wholesale

trade sector, followed by a 9.2-percent increase by

both the real estate and rental and leasing sector and

the professional, scientific, and technical services

sector. Although overall profits for nonfarm sole

proprietorship returns increased, deficits also increased by an amount of 7.5 percent in real terms

from Tax Year 2003.

In addition to an increase in profits for sole

proprietorships in Tax Year 2004, there was an

increase of both receipts and deductions reported on

these returns: total business receipts increased 8.5

percent to $1,139.5 billion, and total business deductions grew 8.8 percent to $892.4 billion. The finance

and insurance sector reported the largest percentage

increase in both receipts and deductions with a 13.6percent increase in business receipts and a 15.5percent increase in deductions. The construction

sector reported the second largest growth in receipts

at 12.8 percent. For 2004, when inflation is taken

into account, sole proprietors reported the largest

increase in both receipts and deductions since before1988.

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

1998-2004 with 1997 and prior years may show

inconsistencies. A reason for this was that many sole

proprietorships under the NAICS system were classified in completely different industrial groups, which

Kevin Pierce and Michael Parisi are economists with the

Individual Research Section and the Individual Returns

Analysis Section, respectively. This article was prepared

under the direction of Carl Greene, Chief of the Individual Research Section, and Jeff Hartzok, Chief of the

Individual Returns Analysis Section.

makes prior-year comparisons inappropriate. For

example, in 1997, finance, insurance, and real estate

were grouped by Standard Industrial Classification

(SIC) codes as one industry, while, under the NAICS

system, the group has been split into two industrial

sectors. The industrial sectors based on the NAICS

codes are reported in Tables 1 and 2.

Returns and Receipts

The number of individual income tax returns reporting

nonfarm sole proprietorship activity for 2004 increased 4.5 percent to almost 20.6 million (Figure

A)[1]. The two largest industrial sectors (in numbers of returns) showed an increase in the number of

returns for Tax Year 2004; the professional, scientific, and technical services sector, with

approximately 3.0 million returns, increased 7.2

percent, and the construction sector, with approximately 2.6 million returns, increased 3.8 percent.

The largest reported increase for any industrial sector

was in the wholesale trade sector, with a 21.6percent increase to almost 351 thousand returns.

Total business receipts (the sum of “income from

sales and operations” and “other business income”)

for all nonfarm sole proprietorship industries increased 8.5 percent, from $1,050.2 billion to $1,139.5

billion [2]. The finance and insurance sector showed

the largest percentage increase in receipts, reporting

an increase of $8.7 billion or 13.6 percent. The

second largest percentage increase in receipts for

2004 was in the construction sector, with an increase

of 12.8 percent. This was followed closely by the

12.5-percent growth in receipts in the real estate and

rental and leasing sector, as well as the 12.3-percent

growth in the transportation and warehousing sector.

Overall, in constant dollar terms, total business receipts had the largest annual increase over Tax

Years 1988-2004 of 5.4 percent (Figure B) [3].

Deductions

Total business deductions (“cost of sales and operations” plus business expenses, including expenses for

home office) in current dollars increased 8.8 percent

from $820.2 billion for 2003 to $892.4 billion for 2004

(Figure A) [4,5]. The finance and insurance sector

showed the largest percentage increase in deductions, with 15.5 percent. As shown in Figure B,

when accounting for inflation, business deductions

7

Sole Proprietorship Returns, 2004

Figure A

Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,

Tax Years 2003 and 2004

[Number of returns is in thousands--money amounts are in billions of dollars]

Number of returns

Industrial sector

2003

2004

Total business receipts

Percentage

2003

2004

increase

(1)

8

Total business deductions ¹

Percentage

2003

2004

increase

Percentage

increase

(2)

(3)

(4)

(5)

(6)

(7)

(8)

All nonfarm industries........................... 19,710.1

20,590.7

4.5

1,050.2

1,139.5

8.5

820.2

892.4

(9)

8.8

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

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

2,491.2

1,998.4

2,586.8

2,084.0

3.8

4.3

175.8

120.0

198.4

134.7

12.8

12.2

146.9

97.2

167.3

110.2

13.9

13.4

Wholesale trade (merchant wholesalers)...

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

288.5

2,416.1

350.8

2,399.4

21.6

-0.7

38.3

177.0

40.8

187.1

6.6

5.7

34.0

169.1

35.7

179.0

5.2

5.9

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

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

944.6

659.0

982.8

672.7

4.0

2.1

58.1

64.4

65.3

73.1

12.3

13.6

49.9

48.1

56.6

55.6

13.3

15.5

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

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

1,074.1

1,019.6

1,179.4

1,113.9

9.8

9.2

62.7

58.8

70.5

66.6

12.5

13.2

37.2

33.2

42.6

38.6

14.6

16.3

Professional, scientific, and

technical services.....................................

2,752.8

2,951.0

7.2

128.5

137.7

7.1

76.5

80.9

5.8

Administrative and support and waste

management and remediation services...

1,881.2

1,994.8

6.0

46.7

50.0

7.1

33.7

35.9

6.7

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

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

1,762.8

721.4

1,778.0

694.1

0.9

-3.8

99.4

9.8

104.2

10.0

4.8

2.1

59.6

6.3

62.2

6.4

4.3

1.3

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

1,098.5

1,132.2

3.1

24.1

26.4

9.4

18.7

20.6

10.1

Performing arts, spectator sports,

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

937.7

963.5

2.8

17.9

19.3

7.8

12.7

13.8

8.8

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

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

1,995.0

1,239.5

2,089.3

1,338.7

4.7

8.0

70.2

31.9

73.0

33.6

4.0

5.2

54.2

22.2

56.6

23.0

4.3

3.9

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

2,346.2

2,473.4

5.4

105.0

113.1

7.7

92.3

99.4

7.7

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.

increased 5.7 percent, the largest increase in deductions from Tax Years 1988-2004.

Representing 41.6 percent of total 2004 business

deductions, the cost of sales and operations was

approximately $371.0 billion (Figure C), a 9.6-percent

increase from the 2003 level. Total business “expenses” (total business deductions minus the cost of

sales and operations) were $521.5 billion for 2004, an

8.2-percent increase from the 2003 amount. Figure D

graphically presents the main components of total

business expenses. The largest component, salaries

and wages, accounted for 13.6 percent of the total.

For 2004, salaries and wages totaled $71.1 billion, a

5.1-percent increase from 2003. The next largest

components of business expenses were cars and

trucks (11.3 percent), depreciation (8.2 percent), and

rent on business property, machinery, and equipment

(5.4 percent). For 2004, these items were $59.0

8

billion, $42.9 billion, and $36.9 billion, respectively.

Car and truck expenses showed a 10.3-percent

increase from 2003; depreciation a 2.7-percent

increase, and rent on business property, machinery,

and equipment a 3.4-percent increase. While contract labor, represented only 3.5 percent of all business expenses for 2003, it had the largest percentage

increase for 2004 of 45.4 percent and went up to 4.7

percent of all business expenses.

Beginning with 1993, constant dollar depreciation

increased every year through 2003, except for 1995,

when it decreased 1.9 percent to $28.5 billion [6].

However, for 2004, constant dollar depreciation

showed a decrease for the first time in 9 years. This

was possibly due to the rather large increase in

allowable expensing of depreciation for 2003, leaving

less to expense for 2004. Under the Jobs and

Growth Tax Relief Reconciliation Act of 2003, a

Sole Proprietorship Returns, 2004

Figure B

Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988-2004

[Money amounts are in billions of dollars]

Total business deductions 1

Total business receipts

Constant dollars 2

Tax

year

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

1989.....................

1990.....................

1991.....................

1992.....................

1993.....................

1994.....................

1995.....................

1996.....................

1997.....................

1998.....................

1999.....................

2000.....................

2001.....................

2002.....................

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

2004.....................

Current

Net income less deficit (profits)

Constant dollars

2

Constant dollars 2

Percentage

Current

Percentage

Current

dollars

Amount

increase

dollars

Amount

increase

dollars

Amount

Percentage

increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

672.0

692.8

730.6

712.6

737.1

757.2

790.6

807.4

843.2

870.4

918.3

969.3

1,021.0

1,016.8

1,029.7

1,050.2

1,139.5

887.8

881.9

895.5

843.9

853.3

856.8

876.0

876.6

898.5

912.2

951.8

990.5

1,021.0

993.3

990.6

990.8

1,044.5

--0.7

1.5

-5.8

1.1

0.4

2.2

0.1

2.5

1.5

4.3

4.1

3.1

-2.7

-0.3

(³)

5.4

545.7

560.2

589.2

571.2

583.1

600.8

623.8

638.1

666.5

683.9

716.2

761.4

806.4

799.6

808.9

820.2

892.4

720.9

713.1

722.1

676.4

675.0

679.7

691.2

692.8

710.1

716.7

742.3

778.0

806.4

781.1

778.2

773.8

818.0

--1.1

1.3

-6.3

-0.2

0.7

1.7

0.2

2.5

0.9

3.6

4.8

3.6

-3.1

-0.4

-0.6

5.7

126.3

132.7

141.4

141.5

154.0

156.5

166.8

169.3

176.8

186.6

202.3

207.9

214.7

217.4

221.1

230.3

247.6

166.9

168.9

173.3

167.6

178.3

177.0

184.8

183.8

188.3

195.6

209.7

212.5

214.7

212.3

212.7

217.3

226.9

-1.2

2.6

-3.3

6.4

-0.7

4.4

-0.6

2.5

3.9

7.2

1.3

1.1

-1.1

0.2

2.1

4.4

¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years. However, these losses

(after subtraction) and any carryover are reflected in net income or deficit. Therefore, total business receipts minus total business deductions may not always equal net income

or deficit.

² Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic

Analysis, in the Survey of Current Business . The deflator represents the annual average of current-weighted prices, based on 2000 = 100.

³ Less than 0.05 percent.

NOTE: Percentage increases were calculated before rounding.

substantial increase in the maximum allowable Section 179 deduction from $24,000 for 2002 to $100,000

for 2003 led to depreciation increasing significantly by

11.7 percent in real terms. For 2004, with the179

deduction increasing to $102,000, depreciation deductions had only a slight change, a decrease (in real

terms) of 0.2 percent (Figure E). Although not all of

the growth in depreciation in 2003 can be attributed

to the change in the Section 179 deduction, the significant increase in the deduction amount greatly

impacted the depreciation deductions for sole

proprietorships. With the extra depreciation expensed for 2003 and only a $2,000 increase in the 179

deduction amount between 2003 and 2004, there was

relatively no change in depreciation deductions for

2004 [7, 8].

Beginning with Tax Year 1992, certain smaller

businesses could elect not to itemize depreciation and

other business deductions by filing Schedule C-EZ,

Net Profit From Business, a simplified version of

Schedule C, Profit or Loss From Business. (Schedule C and Schedule C-EZ are the source of sole

proprietorship statistics.) For Tax Year 2004, taxpayers could use Schedule C-EZ if they: had business

expenses of $5,000 or less (this was $2,500 for

2003); used the cash accounting method; had no

inventories; did not report a deficit from the business;

had only one business as a sole proprietor; had no

employees; were not required to file Form 4562,

Depreciation and Amortization, for the business;

claimed no deduction for home business expenses;

and had no prior-year disallowed passive activity

losses from the business. Since taxpayers using

Schedule C-EZ did not itemize business deductions,

the detailed deductions in Table 2 are slightly understated and do not add to the totals.

Figure F presents the numbers and percentages

of nonfarm sole proprietorship returns filed on Schedule C-EZ by industrial sector. Approximately 3.7

million taxpayers filed Schedule C-EZ for Tax Year

9

Sole Proprietorship Returns, 2004

Figure C

Components of Nonfarm Sole Proprietorship

Business Deductions, Tax Years 2003 and 2004

[Money amounts are in millions of dollars]

Business deductions

2003

2004

Percentage

(1)

(2)

(3)

Business deductions, total ¹.............. 820,206,714

892,402,428

8.8

Cost of sales and operations, total.. 338,376,959

370,951,227

9.6

increase

10

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

34,924,642

35,761,115

2.4

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

28,032,070

31,768,695

13.3

Purchases......................................... 218,445,328

238,922,503

9.4

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

46,554,634

53,267,879

14.4

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

47,331,624

50,186,705

6.0

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

36,911,339

Business expenses, total ¹................ 481,829,755

38,955,669

521,451,201

5.5

8.2

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

12,340,084

12,888,316

4.4

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

53,466,645

58,980,274

10.3

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

13,502,446

13,267,025

-1.7

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

16,977,798

24,686,741

45.4

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

639,008

775,567

21.4

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

41,754,963

42,900,776

2.7

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

2,421,673

2,617,800

8.1

Home office business deductions ²...

7,047,483

7,807,037

10.8

27.3

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

858,891

1,093,415

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

17,489,210

18,864,229

7.9

Legal and professional services.......

8,284,557

8,959,140

8.1

Meals and entertainment deducted...

5,524,213

5,997,824

8.6

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

4,762,929

5,167,373

8.5

0.7

Other interest paid on business

indebtedness..................................

5,818,316

5,856,393

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

11,849,079

12,362,672

4.3

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

1,182,019

1,202,228

1.7

3.0

Rent on machinery and equipment...

8,470,304

8,728,363

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

27,201,706

28,139,206

3.4

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

13,221,220

14,762,464

11.7

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

25,507,159

27,302,886

7.0

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

67,640,849

71,068,517

5.1

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

15,179,639

16,036,234

5.6

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

9,313,708

10,317,557

10.8

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

21,661,093

21,477,462

-0.8

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

89,092,512

98,293,189

10.3

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.

2004, representing a 25.2-percent increase from the

number filed for 2003. This large increase was

probably due to the raising of allowable expenses on

a Schedule C-EZ from $2,500 to $5,000. Of the

10

returns filed for 2004 in the administrative and support services sector (the largest filers of this schedule), taxpayers filed approximately 565 thousand

Schedule C-EZ returns, or 28.3 percent of the total

for that sector [9]. For 2004, business receipts from

Schedule C-EZ filers totaled $24.6 billion, or 2.2

percent of total business receipts reported. Business

deductions reported on Schedule C-EZ returns accounted for only 0.3 percent of total business deductions for all industries, or $3.0 billion of the total

$892.4 billion. Even in the administrative and support

services sector with its higher concentration of

Schedule C-EZ filers, deductions reported on the

Schedule C-EZ accounted for just 1.0 percent of that

sector’s total business deductions.

Profits and Losses

For 2004, nearly all of the principal industrial sectors

reported increased sole proprietorship profits (net

income less deficit). Figure B presents total profits

for all industries (in both current and constant dollars)

since 1988, while Figure G presents profits by

industrial sector for 2003 and 2004 [10]. Total profits

increased 7.5 percent from $230.3 billion for 2003 to

$247.6 billion for 2004. The wholesale trade sector

reported the largest percentage change in profits for

2004, increasing 18.3 percent to $5.1 billion. The real

estate and rental and leasing as well as the professional, scientific, and technical sector reported the

second largest percentage increase in profits with

9.2 percent.

In constant dollars, total profits increased 4.4

percent for 2004 (Figure B), the largest increase in

profits since 1998. Despite the significant increase in

total profits (in real terms), profits as a percentage of

business receipts went down for 2004. Figure H

displays net income less deficits as a percentage of

business receipts. For Tax Year 2004, profits as a

percentage of business receipts was 21.7 percent,

slightly below the 21.9 percent for 2003. Since 1987,

the highest percentage was for 1998 at 22.0 percent,

while the lowest was for 1988 at 18.8 percent. Figure E presents net income and deficit separately for

1988 through 2004, in current and constant dollars.

For 2004, net income (in constant dollars) increased

4.9 percent, and deficit (in constant dollars) increased

7.5 percent.

Sole Proprietorship Returns, 2004

Figure D

Nonfarm Sole Proprietorship Total Business Expenses, Tax Year 2004 ¹

Type of expenses

Office expenses

2.4

Advertising expenses

2.5

Commissions

2.5

Repairs

2.8

Taxes paid

3.1

Insurance

3.6

Utilities

4.1

Contract labor

4.7

Supplies

5.2

Rent paid on business property, machinery, and equipment

7.1

Depreciation ²

8.2

Car and truck expenses

11.3

Salaries and wages

13.6

Other business deductions ³

28.8

0

5

10

15

20

25

30

35

Percent of total

¹ Total business expenses equals 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 includes: depletion; employee benefit programs; interest; legal and professional services; pension and profitsharing plans; travel, meals, and entertainment; and home office business deductions. Other business deductions also includes all Schedule CEZ deductions ($3.0 billion).

NOTES: Percents are based on an estimated total business expense of $521.5 billion. Detail may not add to 100 percent because of

rounding.

Industries

Using receipts as a measure of business size, Figures

A and I show that construction was the largest sole

proprietorship industrial sector for 2004, with 17.4

percent of all business receipts (surpassing the retail

trade sector which was largest for 2003). Total

receipts for the construction sector, at $198.4 billion,

were 12.8-percent higher than the $175.8 billion

reported for 2003, while deductions also increased by

13.9 percent, leading to a 7.4-percent increase in

profits. The second largest industrial sector was

retail trade, with receipts totaling $187.1 billion. This

amount was 16.4 percent of all sole proprietorship

receipts for 2004, and it represented a 5.7-percent

increase from the 2003 amount. Deductions also

increased in this sector by 5.9 percent. Retail trade

profits increased 2.0 percent for 2004, totaling

$8.1 billion.

The third largest sector was professional, scientific, and technical services, which accounted for 12.1

percent of sole proprietorship receipts for 2004.

Receipts increased 7.1 percent to $137.7 billion, and

deductions increased 5.8 percent to $80.9 billion.

Although this sector was the third largest sector in

terms of business receipts, the professional, scientific,

and technical services sector had the largest percent11

Sole Proprietorship Returns, 2004

Figure E

Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988-2004

[Money amounts are in billions of dollars]

Constant dollars 1

Current dollars

Tax year

Net income

(1)

(2)

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

1989...........................

1990...........................

1991...........................

1992...........................

1993...........................

1994...........................

1995...........................

1996...........................

1997...........................

1998...........................

1999...........................

2000...........................

2001...........................

2002...........................

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

2004...........................

145.5

152.4

161.7

162.4

173.5

177.0

187.8

191.7

200.1

210.5

226.2

233.4

245.2

250.2

257.3

269.1

290.5

19.2

19.7

20.2

20.9

19.5

20.5

21.0

22.5

23.4

23.8

23.9

25.5

30.5

32.8

36.2

38.8

42.9

Deficit

Depreciation ²

Percentage increase in constant dollars 1

Net income

Deficit

Depreciation ²

Net income

Deficit

Depreciation ²

(3)

(4)

(5)

(6)

(7)

(8)

(9)

26.1

24.5

23.7

23.1

23.3

25.0

26.2

26.2

27.4

28.6

29.1

30.6

32.2

33.4

36.6

41.8

42.9

192.2

194.0

198.2

192.3

200.8

200.3

208.1

208.2

213.2

220.6

234.5

238.5

245.2

244.4

247.5

253.9

266.3

25.4

25.1

24.8

24.8

22.6

23.2

23.3

24.4

24.9

25.0

24.8

26.0

30.5

32.0

34.8

36.6

39.3

34.5

31.2

29.0

27.4

27.0

28.3

29.0

28.5

29.2

30.0

30.2

31.3

32.2

32.7

35.3

39.4

39.3

-0.9

2.2

-3.0

4.4

-0.3

3.9

(³)

2.4

3.4

6.3

1.7

2.8

-0.3

1.3

2.6

4.9

--1.1

-1.3

(³)

-8.8

2.8

0.3

4.8

2.1

0.3

-0.7

4.9

17.3

5.0

8.7

5.1

7.5

--9.6

-6.9

-5.8

-1.4

4.9

2.6

-1.9

2.4

2.9

0.7

3.7

2.8

1.4

8.0

11.7

-0.2

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.

12

Figure F

Nonfarm Sole Proprietorship Returns with Schedule C-EZ, by Selected Industrial Sectors, Tax Year 2004

[Money amounts are in millions of dollars]

Number of returns

Total business receipts

With

Percentage

On

Percentage

Schedule

of

Schedule

of

C-EZ

total

C-EZ

total

(2)

(3)

(5)

(6)

Industrial sector

Total

(1)

All nonfarm industries................................. 20,590,691

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

2,586,774

Total

(4)

Total business deductions ¹

On

Total

Percentage

Schedule

of

C-EZ

total

(7)

(8)

(9)

2,991.9

0.3

403.8

0.2

3,703,927

18.0

1,139,523.8

24,574.8

2.2

892,402.4

417,400

16.1

198,364.4

3,135.2

1.6

167,342.7

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

350,824

51,572

14.7

40,849.6

442.4

1.1

35,735.4

35.4

0.1

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

2,399,442

238,773

10.0

187,076.7

1,018.0

0.5

179,018.0

160.2

0.1

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

982,832

129,112

13.1

65,303.9

947.9

1.5

56,584.5

152.3

0.3

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

672,687

65,770

9.8

73,125.9

642.1

0.9

55,556.1

59.0

0.1

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

1,179,391

90,140

7.6

70,504.2

859.4

1.2

42,591.5

110.0

0.3

2,950,964

492,948

16.7

137,681.8

4,922.4

3.6

80,934.2

486.3

0.6

Professional, scientific, and

technical services.......................................

Administrative and support and waste

management and remediation services.........

1,994,817

564,644

28.3

49,986.8

3,342.1

6.7

35,935.7

365.9

1.0

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

1,778,007

457,059

25.7

104,158.8

3,083.7

3.0

62,205.0

327.4

0.5

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

1,132,171

195,987

17.3

26,359.3

737.5

2.8

20,571.7

165.4

0.8

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

2,089,346

396,413

19.0

73,006.2

2,523.0

3.5

56,559.5

389.8

0.7

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

2,473,436

604,109

24.4

113,106.0

2,921.3

2.6

99,368.1

336.3

0.3

¹ Total business deductions are calculated before subtraction of nonallowable "passive" activity losses and any "passive loss" carryover from prior years.

² Less than 0.05 percent.

NOTE: Certain smaller sole proprietorships could elect not to itemize business deductions by filing Schedule C-EZ, Net Profit from Business. See the text of this article for a

12

full list of the requirements to be eligible to file Schedule C-EZ.

Sole Proprietorship Returns, 2004

Figure G

age of sole proprietorship profits with 23.0 percent

(see Figure J). For 2004, the professional, scientific,

and technical services sector’s profits went from

$52.1 billion to $56.9 billion, a 9.2-percent increase

from 2003 profits. The sector with the second largest profits was health care and social assistance.

These profits rose to $42.0 billion for 2004, a 5.4percent increase from 2003 levels.

Tax Year 2001 is the first year in which data

became available on the number of Limited Liability

Companies (LLCs) among sole proprietorship returns. LLC entities have the limited liability of corporations, but are taxed as sole proprietorships--income

and expenses flow through to the owner to be taxed.

In 2001, there were approximately 126 thousand sole

proprietorship returns that indicated status as an LLC

(Figure K). This increased by 15.3 percent for 2002

and 51.2 percent for 2003. For Tax Year 2004, the

number of these sole proprietorships rose to approximately 310 thousand, a 40.4-percent increase from

2003 [11]. Though the 2004 level of LLCs among

sole proprietorship returns only counts for 1.5 percent

of the total nonfarm sole proprietorships, these numbers are growing fast.

Nonfarm Sole Proprietorship Profits, by Selected

Industrial Sectors, Tax Years 2003 and 2004

[Money amounts are in billions of dollars]

Net income less deficit (profits)

Industrial sector

Percentage

2003

2004

(1)

(2)

(3)

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

230.3

247.6

7.5

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

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

28.9

22.9

31.0

24.5

7.4

7.3

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

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

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

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

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

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

Professional, scientific, and technical services..

Administrative and support and waste

management and remediation services..........

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

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

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

Performing arts, spectator sports, and

related industries.........................................

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

4.3

7.9

8.2

16.3

25.5

25.6

52.1

5.1

8.1

8.8

17.6

27.9

27.9

56.9

18.3

2.0

6.6

8.2

9.2

9.3

9.2

13.0

39.8

3.5

5.5

14.1

42.0

3.6

5.8

8.2

5.4

3.0

6.2

5.2

16.0

5.5

16.5

4.8

3.2

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

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

9.8

12.8

10.6

13.9

8.1

8.7

increase

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

calculated before rounding.

Figure H

Net Income Less Deficit (Profits) as a Percentage of Business Receipts, Tax Years 1988-2004

Percent

23

22.0

21.9

22

21.4

21.1

20.9

21

21.5

21.5

21.4

21.7

21.0

20.7

21.0

21.0

19.9

20

19.4

19.2

19

18.8

18

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

Tax year

13

Sole Proprietorship Returns, 2004

Figure I

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

2004

Arts, entertainment, and recreation

2.3

Wholesale trade (merchant wholesalers)

3.6

Administrative and support and waste management and

remediation services

4.4

Transportation and warehousing

5.7

Real estate and rental and leasing

6.2

Other services

6.4

Finance and insurance

6.4

Health care and social assistance

9.1

All other industries

14

9.8

Professional, scientific, and technical services

12.1

Retail trade

16.4

Construction

17.4

0

5

10

15

20

Percent of total

NOTES: Percents are based on an estimated total business receipts of $1,139.5 billion. Detail may not add to 100 percent because

of rounding.

Summary

Profits for the 20.6 million returns with sole proprietorship activity for Tax Year 2004 grew 7.5 percent

to a level of $247.6 billion. In constant dollars, total

nonfarm sole proprietorship profits increased 4.4

percent, the largest increase since 1998. The wholesale trade sector reported the largest percentage

growth in profits at 18.3 percent. The professional,

scientific, and technical services sector had the

14

largest profits of any sector at $56.9 billion, representing 23.0 percent of total sole proprietorship

profits, followed by the health care and social assistance sector at $42.0 billion, or 17.0 percent of total

profits. For all sole proprietorships, receipts and

deductions increased 8.5 percent and 8.8 percent,

respectively. The largest sole proprietorship industrial sector, based on business receipts was the

construction sector, accounting for 17.4 percent of

Sole Proprietorship Returns, 2004

Figure J

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

2004

Wholesale trade (merchant wholesalers)

2.1

Arts, entertainment, and recreation

2.3

Retail trade

3.3

Transportation and warehousing

3.5

All other industries

5.6

Administrative and support and waste management and

remediation services

5.7

Other services

6.6

Finance and insurance

7.1

Real estate and rental and leasing

11.3

Construction

12.5

Health care and social assistance

17.0

Professional, scientific, and technical services

23.0

0

5

10

15

20

25

Percent of total

NOTES: Percents are based on an estimated total business profits of $247.6 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.

receipts. This sector reported a 7.4-percent increase

in profits. The finance and insurance sector showed

the largest percentage increase in both receipts and

deductions, reporting a 13.6-percent increase in

receipts and a 15.5-percent increase in deductions.

Filings of Schedules C-EZ increased rapidly (25.1

percent) with the doubling of allowable expenses on

this form for 2004.

Data Sources and Limitations

The 2004 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 2004. Returns in the

sample were stratified based on: (1) the presence or

absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net

Profit From Business, and Schedule F, Farm Income

and Expenses; (2) the larger of positive income or

negative income (i.e., “adjusted gross income” before

statutory adjustments); and (3) tax year. The returns

were selected at rates that ranged from 0.05 percent

to 100 percent. The 2004 nonfarm sole proprietorship data are based on a sample of 62,926 returns

and a population of 20,848,447 returns [11]. The

corresponding sample and population for the 2003

data were 55,935 and 19,987,964 returns, respectively.

15

Sole Proprietorship Returns, 2004

Figure K

Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs), Tax

Years 2001-2004

Tax year

2004

309,665

2003

220,615

145,839

2002

2001

126,437

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Number of LLCs

16

Since the data presented in this article are estimates based on a sample of returns filed, they are

subject to sampling error. To properly use the statistical data estimates provided, the magnitude of the

potential sampling error must be known; coefficients

of variation (CVs) are used to measure that magnitude. Figure L presents estimated coefficients of

variation for the number of returns and money

amounts for selected items and industrial sectors.

Generally, the smaller the coefficient of variation, the

more reliable the estimate is judged to be. 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.

Notes and References

[1] For 2004, the 20,590,691 nonfarm sole proprietorship returns accounted for an estimated

22,886,863 nonfarm businesses. For purposes of

the statistics, if a proprietor owned more than

one business, the statistics for each business

were combined with those of the proprietor’s

dominant business and included in the industrial

16

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 2004. These classifications were

applied on a “per business” (rather than on a

“per establishment”) basis for Statistics of

Income by combining various industry groups,

although businesses were further combined as

described above. While the wording of the

industry titles used for the sole proprietorship

statistics diverge somewhat from those appearing in NAICS, the definitions are consistent.

[2] Statistics for “business receipts, total” in Table 2

represent the total receipts of the business,

mainly gross receipts from sales and operations.

Business receipts also include miscellaneous

business receipts, such as incidental sales of

scrap, shown separately in the statistics as

“other business income.” However, business

Sole Proprietorship Returns, 2004

Figure L

Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial

Sectors, Tax Year 2004

[Coefficients of variation are in percentages]

Coefficients of variation

Industrial sector

Total business

receipts

¹

(1)

Total business

deductions

Depreciation ²

Net income

Deficit

(2)

(3)

(4)

(5)

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

0.64

0.71

1.35

0.91

1.72

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

2.29

2.36

3.88

2.97

6.01

Speciality trade contractors.............................................................

2.80

2.89

4.60

3.51

7.46

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

5.31

5.48

10.56

8.02

12.35

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

2.30

2.27

4.19

3.86

4.49

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

3.28

3.35

4.56

4.45

7.47

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

2.69

2.66

8.20

4.57

8.13

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

2.85

3.00

4.94

3.62

6.32

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

2.96

3.16

5.42

3.68

7.10

Professional, scientific, and technical services...................................

2.09

2.37

4.12

2.51

5.28

7.75

Administrative and support and waste management and

remediation services........................................................................

3.68

4.21

6.52

3.85

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

2.12

2.21

3.95

2.57

8.88

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

5.86

7.10

11.97

6.11

18.11

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

4.27

4.26

6.42

5.92

6.05

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

4.82

4.67

7.68

6.44

6.81

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

3.22

3.48

5.55

3.92

7.47

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

3.97

4.29

8.43

5.00

9.90

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

2.46

2.52

3.79

3.32

4.36

¹ Positive only.

² Excludes depreciation claimed on Form 8829.

receipts exclude incidental investment income

received through the business. Examples of

such incidental investment income are interest,

dividends, income or loss from rents or royalties,

and capital or ordinary gain or loss from the sale

of investment and business property. Sole

proprietors report incidental investment income,

in combination with nonbusiness related investment income, as part of their total incomes on

their individual income tax returns.

[3] Based on the overall implicit price deflator for

Gross Domestic Product (GDP). See U.S.

Department of Commerce, Bureau of Economic

Analysis, Survey of Current Business. Indices

used for this article were:

Year Indices

1988

75.7

1989

78.6

1990

81.6

Year Indices

1994

90.3

1995

92.1

1996

93.9

Year Indices

2000 100.0

2001 102.4

2002 103.9

1991

1992

1993

84.4

86.4

88.4

1997

1998

1999

95.4

96.5

97.9

2003

2004

106.0

109.1

[4] Sole proprietors report personal, i.e., nonbusiness, income and expense items apart from

business income or loss, which is reported on the

attached Schedule C, Profit or Loss From

Business (or, to a lesser extent, on Schedule CEZ, Net Profit From Business). Salaries paid

to owners qualify as personal income, not as a

business expense, and are, therefore, part of the

owner’s taxable income. Similarly, sole proprietors deduct charitable contributions made

through the business as personal expenses on

Schedule A, Itemized Deductions. However,

the owner of a sole proprietorship may choose

to deduct any foreign taxes paid as a business

expense, unless the owner elects to claim these

taxes as a credit against U.S. income tax.

17

Sole Proprietorship Returns, 2004

[5] Business deductions include home office business deductions. After 1990, home office

expenses were calculated separately on Form

8829, Expenses for Business Use of Your

Home, and the deductible portion brought

forward to the 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.

18

[6] The increase in the depreciation deduction for

1993 may be attributed, in part, to a provision of

the Omnibus Budget Reconciliation Act of 1993

(OBRA93). The cost of certain tangible

property (as described in Internal Revenue Code

section 179) may be treated as a current expense rather than a capital expenditure subject

to depreciation deductions. The provision of

OBRA93 (related to these expenses) increased

the maximum amount of investment certain

small businesses could immediately deduct on

property placed in service after 1992, from

$10,000 to $17,500. Following the enactment of

this provision, the deduction increased 32.4

percent to $13.5 billion for 1993.

[7] Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the maximum amount of

Section 179 deduction (the amount of depreciable property that can be expensed for the

cost of certain qualifying property) increased

from $24,000 for 2002 to $100,000 for 2003 and

$102,000 for 2004. For all tax returns that filed

Form 4562, Depreciation and Amortization,

the Section 179 property deducted as an expense increased by 8.7 percent to $39.7 billion

for 2004. The Jobs Creation and Worker

18

Assistance Act of 2002 introduced 30-percent

bonus depreciation, and the Jobs and Growth

Tax Relief Reconciliation Act of 2003 increased

the bonus percentage to 50 percent, for property

placed in service by January 1, 2005. While

bonus depreciation was available to sole proprietors, it was generally not as advantageous as

immediate expensing and therefore likely had

less effect on their depreciation deductions.

[8] For 2004, there were $19.9 billion deducted as

Section 179 property on returns that had a

Schedule C. This number does not reflect

depreciation solely deducted on Schedule C as

this could also include depreciation taken on

Schedule E, Supplemental Income and Loss,

and Schedule F, Profit or Loss from Farming.

[9] Based on the NAICS system, the full name of

the administrative and support services sector is

the administrative and support and waste

management and remediation services sector.

The waste management and remediation

services portions make up a small percentage of

the overall numbers reported under this classification, which are detailed in Table 1.

[10] Net income minus deficit (loss) before Federal

income tax yields profits. Proprietors compute

their tax on total “taxable income,” which includes

their business profits, plus any other income.

[11] The difference between the number of returns

in the population and the total number of returns

in Tables 1 and 2 is mainly due to returns in which

Schedule C income was moved to other income

or wages to avoid double counting of taxpayers

for Gross Domestic Product calculations. In

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

Sole Proprietorship Returns, 2004

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

Business

Depreciation on machinery

of returns

receipts

deduction

1,2

and

equipment

(1)

(2)

All nonfarm industries................................................................ 20,590,691 1,139,523,760

281,915

15,878,032

Agriculture, forestry, hunting, and fishing...................................

35,273

1,462,902

Animal production (including breeding of cats and dogs).............

Forestry and logging

(including forest nurseries, timber tracts)....................................

Rent paid

Number

1

on other

Interest paid

business

deduction

property

1,3

Net income

Payroll

1,4

less deficit

1

(3)

(4)

(5)

43,994,191

1,669,142

196,715

8,728,363

161,583

30,717

28,139,206

191,813

35,243

(6)

(7)

(8)

11,023,767 102,837,211 247,567,189

244,989

1,480,454

660,369

37,846

87,449

-282,054

Fishing..........................................................................................

Hunting and trapping.....................................................................

Support activities for agriculture and forestry...............................

48,400

70,441

8,665

119,137

5,947,055

2,166,336

211,979

6,089,760

557,233

350,443

79,022

485,729

63,917

* 4,589

* 252

62,107

35,460

33,681

* 795

86,633

74,980

42,690

14,248

75,225

506,887

69,143

4,165

812,810

360,087

291,632

-67,714

358,419

Mining..............................................................................................

Oil and gas extraction...................................................................

Coal mining...................................................................................

Metal ore mining............................................................................

Nonmetallic mineral mining and quarrying....................................

Support activities for mining..........................................................

125,923

103,469

1,135

* 1,335

4,527

15,458

9,202,124

6,650,892

507,160

* 110,121

467,784

1,466,167

723,616

517,910

33,171

* 21,411

45,803

105,322

24,968

11,332

* 1,274

* 2,369

3,147

6,847

52,068

41,400

* 711

* 39

3,297

6,622

88,646

61,205

* 6,708

* 370

9,476

10,886

377,073

107,482

* 66,319

* 12,443

61,869

128,960

1,372,340

992,096

-20,424

* 15,679

71,173

313,817

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

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

Residential building construction..................................................

Nonresidential building construction.............................................

Heavy and civil engineering construction ...................................

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

11,795

2,586,774

374,490

80,950

47,320

2,084,014

308,232

198,364,423

46,626,584

9,541,450

7,508,085

134,688,305

23,832

8,032,625

1,306,249

276,377

598,615

5,851,383

* 10,090

1,378,644

213,176

62,918

176,561

925,989

* 5,311

1,044,355

134,396

27,218

27,441

855,300

* 9,673

1,364,121

329,870

71,521

148,328

814,402

* 8,443

26,964,195

5,495,273

1,145,922

586,424

19,736,577

41,922

31,038,488

4,913,506

932,519

654,918

24,537,546

Manufacturing.................................................................................

Food manufacturing......................................................................

Textile and textile product mills.....................................................

Apparel..........................................................................................

Leather and allied products...........................................................

351,204

29,074

4,551

29,678

* 3,838

25,824,798

3,449,144

316,682

1,585,687

* 99,464

1,145,102

79,700

* 12,537

39,339

* 2,941

185,809

4,452

* 2,016

8,584

--

800,530

150,973

* 1,119

63,671

* 120

282,152

23,977

* 3,602

11,182

* 213

3,410,268

339,003

* 37,890

167,305

* 1,276

3,018,241

180,805

44,382

313,302

* 1,629

Wood products..............................................................................

Paper products..............................................................................

Printing and related support activities...........................................

Petroleum and coal products........................................................

Chemical manufacturing...............................................................

Plastics, rubber, clay, refractory, and glass products...................

Nonmetallic mineral products........................................................

Primary metal industries................................................................

Fabricated metal products.............................................................

Machinery......................................................................................

Computer and electronic products................................................

Electrical equipment, appliances, and components......................

Transportation equipment.............................................................

Furniture and related products......................................................

Medical equipment and supplies...................................................

Other miscellaneous manufacturing..............................................

51,401

* 18

38,532

* 407

11,169

18,696

8,578

* 5,133

35,016

24,222

8,370

5,665

10,288

28,287

3,864

34,417

3,232,481

* 27,629

2,563,190

* 130,793

497,290

746,391

992,138

* 162,506

3,574,350

2,661,245

230,494

551,221

955,764

1,917,331

448,767

1,682,231

156,759

* 2,783

81,536

* 727

21,701

53,363

47,024

* 20,298

244,734

184,319

9,506

11,183

16,624

75,849

* 4,275

79,903

27,163

* 693

35,670

* 17

* 2,452

* 1,416

* 6,714

* 23

51,698

2,927

*4

* 662

* 18,970

10,448

* 3,816

8,084

67,416

* 258

144,532

* 20

* 4,926

32,315

* 5,300

* 162

78,453

63,550

* 6,443

12,966

21,605

85,564

* 20,354

40,782

33,793

* 420

23,357

* 26

* 2,462

20,213

9,477

* 2,340

43,538

25,711

* 611

* 5,459

36,145

13,813

* 1,139

24,672

523,968

* 4,268

341,146

* 1,411

* 33,454

104,815

172,281

* 579

585,232

413,157

* 8,253

63,786

104,964

163,699

* 29,779

314,004

348,726

* -709

199,361

* 6,093

58,692

68,035

92,249

* 40,598

312,585

415,265

71,908

69,363

36,531

432,369

158,137

168,919

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

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

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

Wholesale electronic markets and agents and brokers................

350,824

149,399

118,760

82,665

40,849,558

18,307,028

16,338,556

6,203,974

598,001

306,032

191,979

99,990

139,742

78,142

52,577

9,024

434,172

223,059

164,408

46,704

204,294

89,997

99,082

15,215

1,273,027

547,124

638,846

87,057

5,128,810

2,008,014

1,428,062

1,692,734

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

Motor vehicle and parts dealers....................................................

Furniture and home furnishing stores...........................................

Electronic and appliance stores....................................................

Building material and garden equipment and supplies dealers....

Food and beverage stores............................................................

Health and personal care stores...................................................

Gasoline stations..........................................................................

Clothing and accessories stores...................................................

2,399,442

158,658

55,791

44,865

50,761

85,108

156,954

20,851

120,231

187,076,742

37,368,327

6,345,917

4,883,913

9,107,146

26,133,236

9,763,099

22,544,731

11,868,512

3,137,131

383,744

103,138

126,071

185,646

276,708

190,165

267,504

162,874

784,146

76,427

19,779

15,405

28,541

66,211

71,324

48,229

95,367

5,707,590

395,909

326,574

240,386

137,764

735,749

268,526

290,877

919,601

1,512,244

290,415

59,254

35,160

95,268

112,431

42,267

167,009

80,068

11,274,485

1,708,524

531,515

569,537

956,486

1,725,492

768,658

779,287

884,291

8,101,744

1,307,471

477,484

320,731

615,612

1,012,664

512,215

274,447

934,908

Sporting goods, hobby, book, and music stores...........................

General merchandise stores.........................................................

133,070

34,661

7,479,548

5,388,473

171,461

72,038

24,257

6,342

386,629

201,128

84,617

45,421

451,685

349,470

217,403

183,609

Miscellaneous store retailers........................................................

551,143

28,161,353

725,716

253,735

1,391,168

302,167

1,770,561

1,624,375

Nonstore retailers..........................................................................

Footnotes at end of table.

987,350

18,032,484

472,065

78,529

413,280

198,167

778,977

620,825

19

Sole Proprietorship Returns, 2004

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

Industrial sector

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

Air and rail transportation.....................................................................

Water transportation.............................................................................

General freight trucking, local...............................................................

20

20

Rent paid

Number

Business

Depreciation on machinery

on other

Interest paid

of returns

receipts

deduction 1,2

and

business

deduction 1,3

equipment 1

property 1

Net income

Payroll 1,4

less deficit

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

982,832

15,824

5,606

216,673

65,303,903

970,991

377,275

18,221,665

5,539,440

328,036

27,838

1,490,437

1,828,319

10,163

* 63

294,684

640,671

22,748

11,298

103,423

906,945

54,203

2,605

209,736

4,292,880

41,612

4,517

2,043,744

8,756,499

-271,833

152,804

2,319,481

General freight trucking, long-distance

and specialized freight trucking.........................................................

Urban transit.........................................................................................

Interurban and rural bus transportation................................................

Taxi and limousine service...................................................................

School, employee, and charter bus industry.........................................

Other transit and ground passenger transportation..............................

Pipeline transportation..........................................................................

Scenic and sightseeing transportation..................................................

Support activities for transportation

(including motor vehicle towing).......................................................

Couriers and messengers.....................................................................

Warehousing and storage facilities......................................................

305,173

*8

* 1,946

132,510

23,218

24,556

-2,875

31,598,902

* 7,076

* 79,362

3,906,844

824,329

1,105,269

-102,087

2,972,169

-* 9,294

114,431

87,751

49,442

-33,458

907,980

-* 6,637

459,295

* 26,294

* 13,949

-* 4,334

184,357

--113,051

* 3,264

* 20,211

-* 4,418

506,068

--38,978

27,196

* 11,333

-11,635

1,385,060

* 4,873

* 10,800

79,752

61,948

* 211,961

-* 1,749

3,370,129

* -1,027

* 7,908

1,081,961

235,821

163,559

--47,131

37,500

208,050

8,893

2,164,631

5,428,770

516,701

185,587

168,564

72,434

19,193

82,581

3,147

112,470

32,616

32,814

21,825

13,503

9,864

216,094

187,018

43,749

292,535

1,408,386

43,907

Information.............................................................................................

Publishing industries (except internet)..................................................

Motion picture and sound recording.....................................................

Broadcasting (except internet) and telecommunications......................

Internet publishing and broadcasting....................................................

Internet service providers, web search portals, and data processing...

295,031

91,795

64,025

44,285

24,636

70,289

8,044,330

2,405,480

1,954,105

1,692,541

345,060

1,647,144

441,967

65,626

257,644

87,126

4,211

27,360

80,003

13,960

55,666

3,422

* 5,292

1,663

242,063

24,575

147,937

54,037

* 851

14,663

68,264

17,303

15,826

25,491

* 5,527

4,117

719,281

177,608

113,930

222,155

* 12,846

192,743

1,901,666

673,220

127,482

280,667

141,102

679,195

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

Credit intermediation and related activities...........................................

672,687

100,590

73,125,906

5,354,120

1,332,606

225,624

290,373

20,313

1,399,366

144,833

621,998

120,779

3,915,629

267,382

17,598,689

1,441,206

Securities, commodity contracts, and other financial investments........

Investment bankers and securities dealers........................................

Securities brokers...............................................................................

Commodity contracts brokers and dealers.........................................

Securities and commodity exchanges.................................................

Other financial investment activities (investment advice)...................

Insurance agents, brokers, and related activities.................................

Insurance agencies and brokerages...................................................

Other insurance related activities.......................................................

154,797

7,654

18,323

10,396

605

117,818

417,301

321,451

95,850

38,721,972

2,218,751

4,952,584

727,299

1,240,237

29,583,101

29,049,814

24,897,407

4,152,407

304,813

8,509

34,720

12,554

1,225

247,806

802,169

675,048

127,121

103,921

6,763

43,887

* 2,713

-50,558

166,140

149,058

17,081

387,119

12,296

41,396

39,004

* 621

293,802

867,414

800,557

66,857

298,767

9,172

28,951

5,525

1,279

253,840

202,452

169,697

32,755

1,108,358

36,840

176,483

30,115

* 1,840

863,081

2,539,889

2,463,075

76,814

4,196,085

511,954

1,022,002

-45,928

-43,974

2,752,031

11,961,398

10,129,012

1,832,386

Real estate and rental and leasing....................................................... 1,179,391

Real estate............................................................................................ 1,113,911

Lessors of real estate

(including miniwarehouses and self storage)....................................

38,277

Offices of real estate agents, brokers,

property managers, and appraisers..................................................

880,577

Other activities related to real estate..................................................

195,057

Rental and leasing services..................................................................

65,479

Automotive equipment rental and leasing...........................................

12,623

Consumer electronics and appliances rental......................................

* 352

Formal wear and costume rental........................................................

* 2,408

Video tape and disc rental..................................................................

7,939

General rental centers and other consumer goods rental..................

16,679

Commercial and industrial machinery

and equipment rental and leasing.....................................................

25,479

70,504,236

66,553,847

3,874,335

2,629,771

494,374

421,889

1,176,160

1,014,109

1,237,175

1,069,617

1,941,274

1,639,014

27,906,990

27,943,474

2,191,958

229,066

23,744

85,181

301,750

128,525

218,955

51,239,559

13,122,330

3,950,389

526,696

* 83,869

* 42,479

569,876

759,490

1,959,354

441,352

1,244,564

202,142

* 5,456

* 2,150

55,534

105,886

353,151

44,994

72,485

* 13,678

* 243

* 46

* 3,402

18,114

799,480

129,448

162,051

8,365

* 13,681

* 2,694

89,854

18,874

360,447

407,419

167,558

21,360

* 702

*5

17,520

18,511

1,162,232

348,257

302,260

19,910

* 35,940

* 6,121

63,937

66,330

24,150,911

3,573,608

-36,484

9,427

* -7,931

* 11,251

20,175

-13,915

1,967,980

873,396

37,001

28,583

109,460

110,022

-55,492

Professional, scientific, and technical services.................................. 2,950,964

Legal services.......................................................................................

352,504

Office of certified public accountants....................................................

55,696

Other accounting services....................................................................

351,845

Architectural, engineering, and related services................................... 290,762

Architectural services..........................................................................

99,930

Engineering services..........................................................................

99,262

137,681,834

35,245,418

3,471,238

7,780,208

14,172,954

6,249,719

5,740,327

4,637,792

720,607

113,011

314,423

559,134

254,389

191,339

850,710

205,575

17,139

51,656

79,056

38,436

29,239

3,394,650

1,473,641

188,581

195,644

217,484

107,912

68,829

927,546

209,113

28,809

112,302

87,285

43,259

34,842

11,229,728

3,978,112

563,847

795,138

1,706,862

868,098

609,348

56,861,810

16,048,668

1,304,100

3,028,344

4,156,847

1,521,083

1,858,477

Drafting, building inspections, and geophysical surveying.................

66,619

1,251,984

43,677

* 3,280

24,969

* 4,070

106,907

475,766

Surveying and mapping (except geophysical) services......................

Testing laboratories............................................................................

Footnotes at end of table.

22,656

2,295

799,849

131,075

57,886

* 11,843

* 6,279

* 1,821

9,723

* 6,051

* 3,235

* 1,879

94,904

* 27,605

270,575

30,946

Sole Proprietorship Returns, 2004

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

Industrial sector

Rent paid

Number

Business

Depreciation on machinery

of returns

receipts

deduction

1,2

and

equipment

1

on other

Interest paid

business

deduction

property

1,3

Net income

Payroll

1,4

less deficit

1

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

217,654

255,947

7,361,378

8,816,742

290,744

376,350

31,981

61,631

111,720

98,659

38,495

53,142

312,399

316,254

1,976,455

4,727,399

1,426,556

735,232

28,188

137,802

40,527

484,808

60,833,895

31,394,764

1,013,759

6,212,967

1,180,626

21,031,781

2,263,524

1,061,518

45,779

155,824

39,633

960,770

403,672

170,119

2,084

27,156

10,557

193,756

1,108,921

383,391

11,596

132,142

25,672

556,121

398,400

192,816

4,057

30,395

3,255

167,878

3,557,117

1,340,983

69,454

239,379

84,422

1,822,878

25,619,996

16,062,373

497,151

2,032,110

400,948

6,627,415

1,994,817

1,962,607

32,210

473,778

1,778,007

867,154

183,041

35,087

92,024

37,158

12,662

175,642

9,127

49,986,835

47,848,873

2,137,961

6,926,461

104,158,816

87,670,394

30,856,608

2,859,686

29,269,421

4,426,015

2,892,474

7,493,224

1,186,771

2,521,071

2,317,657

203,414

332,491

3,144,642

2,542,630

625,287

63,792

1,090,504

168,444

139,182

191,774

20,203

451,614

403,325

48,289

35,240

574,507

482,104

180,715

15,535

123,800

59,545

10,252

61,289

10,502

608,086

588,761

19,325

414,450

4,259,913

3,795,910

1,194,327

184,245

1,078,893

314,931

169,376

448,312

113,951

394,303

358,125

36,179

64,154

1,029,938

651,108

132,195

7,279

317,670

58,924

24,481

46,667

4,249

5,217,819

5,062,278

155,541

436,208

14,701,921

13,004,899

3,982,558

210,069

6,409,817

500,638

526,004

419,570

121,647

14,074,703

13,869,633

205,070

2,455,538

41,963,329

36,691,252

14,505,727

1,524,436

10,082,600

1,742,985

737,340

3,950,018

466,846

105,666

22,127

166,920

3,596,663

1,616,631

2,766,603

103,197

63,821

64,346

11,035

3,829

3,724

193,160

41,519

26,579

7,984

22,406

25,479

215,136

241,829

307,625

1,669,438

578,110

1,142,637

27,701

11,556

55,771

149,411

694,116

706,298

449,632

3,558,970

2,490,455

9,989,364

12,080

12,077

145,589

77,332

367,015

* 1,878

* 1,263

12,940

8,607

69,592

30,616

* 7,309

145,733

131,139

179,823

* 3,774

* 2,567

199,160

49,665

127,438

70,008

* 52,661

901,463

203,914

538,984

291,113

225,583

396,212

1,089,198

3,561,084

Arts, entertainment, and recreation............................................... 1,132,171

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

963,514

Museums, historical sites, and similar institutions.........................

* 3,035

Amusement, gambling, and recreation industries..........................

165,621

26,359,320

19,310,715

* 74,365

6,974,240

1,775,313

1,268,420

* 1,731

505,162

174,572

101,094

-73,478

828,264

441,944

-386,320

253,500

150,539

* 158

102,804

1,321,054

726,269

-594,785

5,792,899

5,466,714

* 43,101

283,084

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

Accommodation.............................................................................

Travel accommodation

(including hotels, motels, and bed and breakfast inns)..............

RV (recreational vehicle) parks and recreational camps.............

Rooming and boarding houses....................................................

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

383,770

48,805

39,720,751

4,807,254

1,715,793

557,429

278,651

30,715

2,406,618

104,703

889,159

476,092

7,054,580

651,219

1,391,146

8,822

30,236

10,256

8,314

334,965

3,797,085

605,999

404,170

34,913,497

419,083

90,421

47,926

1,158,364

24,240

4,495

1,980

247,936

79,885

21,959

* 2,859

2,301,915

363,772

76,530

35,790

413,067

568,756

24,278

58,184

6,403,361

92,686

-29,282

-54,583

1,382,324

Other services................................................................................. 2,089,346

Auto repair and maintenance.........................................................

344,689

Automotive mechanical and electrical repair and maintenance...

179,170

Automotive body shops................................................................

95,334

Other auto repair and maintenance

(including oil change, lubrication, and car washes)...................

70,186

Miscellaneous repairs....................................................................

405,970

Personal and laundry services....................................................... 1,338,687

73,006,151

24,419,559

11,649,920

8,395,054

3,113,737

1,145,520

472,405

413,331

947,472

227,408

108,645

75,757

4,458,533

837,953

400,088

260,015

872,891

358,419

143,635

125,531

7,070,915

3,045,612

1,578,647

905,495

16,457,988

2,930,959

1,356,007

1,205,974

4,374,585

14,994,662

33,591,931

259,784

612,207

1,356,010

43,005

152,436

567,628

177,850

381,421

3,239,159

89,254

196,913

317,559

561,469

1,252,775

2,772,528

368,978

2,948,041

10,578,988

3,635,138

3,566,169

56,853

178,702

11,860

25,686

40,206

34,386

* 12,318

39,458

* 49,885

98,091

1,681,245

1,362,773

Professional, scientific, and technical service

--Continued

Specialized design services...........................................................

Computer systems design services...............................................

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

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

Scientific research and development services.............................

Advertising and related services..................................................

Market research and public opinion polling.................................

Other miscellaneous services......................................................

Administrative and support and waste management

and remediation services.............................................................

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

Waste management and remediation services..............................

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

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

Ambulatory health care services....................................................

Offices of physicians (except mental health specialists)..............

Offices of physicians, mental health specialists...........................

Offices of dentists........................................................................

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

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

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

Offices of podiatrists....................................................................

Outpatient care centers and

other miscellaneous health practitioners...................................

Medical and diagnostic laboratories............................................

Home health care services..........................................................

Other ambulatory health care services

(including ambulance services, blood and organ banks)...........

Hospitals........................................................................................

Nursing and residential care facilities............................................

Social assistance...........................................................................

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

Religious, grantmaking, civic, professional

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

Unclassified establishments..........................................................

Footnotes at end of table.

265,620

284,398

21

Sole Proprietorship Returns, 2004

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors Classified with the North American Industry Classification System

--Continued

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

Businesses with net income

Rent paid

Industrial sector

Rent paid

Number

Business

Depreciation on machinery

of returns

receipts

deduction

1,2

and

equipment

(9)

1

on other

Interest paid

business

deduction

property

1,3

Payroll

1,4

Net income

1

(10)

(11)

(12)

(13)

(14)

971,377,184

29,362,885

6,839,094

21,976,979

6,648,429

169,072

11,802

12,203,678

1,185,643

875,157

59,300

91,956

* 2,857

109,266

26,529

138,511

21,097

1,130,204

* 76,560

2,308,533

207,116

Fishing..........................................................................................

Hunting and trapping....................................................................

Support activities for agriculture and forestry...............................

28,058

47,819

5,795

75,599

4,475,983

1,662,031

131,585

4,748,437

372,547

182,488

* 11,195

249,626

45,785

* 1,509

-41,805

13,261

20,711

-48,765

43,654

21,591

* 5,197

46,972

361,769

* 43,941

* 36

647,898

578,150

574,269

28,970

920,030

Mining.............................................................................................

Oil and gas extraction...................................................................

Coal mining...................................................................................

Metal ore mining...........................................................................

98,943

82,834

* 1,051

* 354

7,275,659

5,353,963

* 77,068

* 109,798

437,892

300,864

* 2,441

* 21,319

17,372

7,237

* 42

* 1,605

42,615

34,614

* 330

* 16

52,338

34,249

* 178

* 370

247,399

62,960

* 9,826

* 12,227

2,080,574

1,624,615

* 17,971

* 18,057

Nonmetallic mineral mining and quarrying...................................

Support activities for mining.........................................................

2,508

12,196

389,079

1,345,751

32,962

80,306

* 2,399

6,088

* 1,389

6,266

7,228

10,313

50,516

111,870

81,668

338,264

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

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

Residential building construction..................................................

Nonresidential building construction............................................

9,146

2,127,410

302,012

63,983

251,675

174,956,534

40,918,175

7,774,489

* 12,391

6,195,445

1,059,927

193,599

* 1,623

1,113,350

168,675

46,124

* 2,792

860,074

109,488

25,148

* 451

985,755

233,445

38,270

* 8,228

22,621,722

4,658,313

922,475

99,146

35,130,228

5,741,610

1,220,989

Heavy and civil engineering construction ...................................

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

37,124

1,724,291

6,180,477

120,083,392

504,161

4,437,758

162,398

736,153

19,755

705,683

106,255

607,785

471,730

16,569,204

880,302

27,287,328

Manufacturing................................................................................

Food manufacturing......................................................................

Textile and textile product mills....................................................

Apparel.........................................................................................

Leather and allied products..........................................................

224,199

20,124

* 2,524

17,677

* 1,850

21,979,899

2,974,797

* 256,523

1,435,185

* 97,537

824,575

48,577

* 10,775

23,537

*7

129,652

2,617

* 795

* 8,560

--

600,827

118,440

-32,397

* 120

184,553

10,965

* 2,902

* 5,067

* 213

2,770,917

253,155

* 18,890

153,886

* 1,276

3,980,453

294,382

* 66,763

378,246

* 8,919

Wood products.............................................................................

Paper products.............................................................................

Printing and related support activities..........................................

35,298

*7

23,862

2,893,226

* 23,155

2,072,384

107,019

* 1,147

53,568

25,633

* 693

22,284

55,715

* 258

100,850

26,892

* 331

18,172

500,228

* 3,825

251,535

424,441

* 272

318,381

Petroleum and coal products........................................................

Chemical manufacturing...............................................................

Plastics, rubber, clay, refractory, and glass products...................

* 393

5,160

13,482

* 130,570

404,583

609,210

* 626

18,900

21,206

* 17

* 2,452

* 496

* 20

* 4,198

* 26,167

* 26

* 1,651

* 12,114

* 1,411

* 30,433

* 93,477

* 6,596

85,743

121,486

Nonmetallic mineral products.......................................................

Primary metal industries...............................................................

Fabricated metal products............................................................

6,904

* 3,851

20,462

717,978

* 158,756

2,820,617

37,579

* 17,103

199,698

* 5,410

* 23

31,023

* 1,915

* 162

40,443

* 3,610

* 481

27,793

104,026

* 579

471,180

101,850

* 45,427

455,896

Machinery.....................................................................................

Computer and electronic products................................................

Electrical equipment, appliances, and components.....................

19,131

* 2,761

4,328

2,406,330

* 207,516

504,764

141,596

* 2,134

9,034

2,383

-* 239

50,198

* 5,918

* 10,504

19,003

* 387

* 4,716

376,175

* 4,019

* 48,147

461,357

* 122,184

105,486

Transportation equipment.............................................................

Furniture and related products.....................................................

Medical equipment and supplies..................................................

4,400

20,314

3,852

633,854

1,750,824

443,802

* 9,854

57,438

* 3,884

* 18,935

* 1,624

* 3,809

* 17,793

83,944

* 20,001

* 15,490

12,551

* 1,007

* 28,950

154,426

* 27,190

95,955

467,551

160,417

Other miscellaneous manufacturing.............................................

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

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

17,820

235,915

88,536

1,438,288

35,783,987

16,787,457

60,894

397,381

214,924

* 2,657

115,956

62,391

31,784

313,215

173,343

21,182

146,929

65,873

248,110

1,005,268

464,343

259,099

6,070,740

2,402,728

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

Wholesale electronic markets and agents and brokers................

86,462

60,917

13,280,104

5,716,426

107,414

75,043

45,856

7,709

109,213

30,659

69,128

11,928

464,183

76,742

1,822,211

1,845,801

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

Motor vehicle and parts dealers...................................................

Furniture and home furnishing stores...........................................

Electronic and appliance stores...................................................

Building material and garden equipment and supplies dealers....

1,203,794

112,012

31,781

27,747

36,017

149,998,167

31,096,834

5,286,450

4,382,867

7,224,426

1,813,784

269,181

80,257

112,540

132,537

514,288

60,454

17,886

13,082

16,895

3,982,267

276,637

234,919

192,254

109,339

843,138

182,611

50,542

24,248

68,648

8,751,547

1,442,753

415,662

505,370

700,475

15,672,409

1,844,493

733,814

483,389

876,775

Food and beverage stores............................................................

Health and personal care stores...................................................

Gasoline stations..........................................................................

61,963

55,600

14,055

23,750,297

8,681,185

16,610,552

218,513

100,849

161,606

57,906

64,187

34,425

618,074

193,041

226,211

78,626

30,142

107,110

1,552,139

719,962

514,973

1,365,979

1,038,328

432,009

Clothing and accessories stores...................................................

Sporting goods, hobby, book, and music stores...........................

General merchandise stores........................................................

70,967

64,205

23,656

9,752,412

5,027,062

4,197,939

100,812

79,352

32,832

72,708

11,766

4,222

724,730

234,932

145,187

50,886

42,821

22,678

714,553

244,735

269,146

1,394,513

697,063

348,427

Miscellaneous store retailers........................................................

268,485

20,836,053

316,023

112,000

802,292

117,264

1,177,316

3,525,283

Nonstore retailers.........................................................................

Footnotes at end of table.

437,307

13,152,090

209,283

48,756

224,652

67,563

494,463

2,932,335

All nonfarm industries................................................................ 15,053,252

Agriculture, forestry, hunting, and fishing..................................

Animal production (including breeding of cats and dogs).............

(15)

(16)

83,455,835 290,486,159

Forestry and logging

(including forest nurseries, timber tracts)...................................

22

22

Sole Proprietorship Returns, 2004

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors Classified with the North American Industry Classification System

--Continued

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

Businesses with net income

Rent paid

Industrial sector

Rent paid

Number

Business

Depreciation on machinery

on other

Interest paid

of returns

receipts

deduction 1,2

and

business

deduction 1,3

equipment 1

property 1

Payroll 1,4

Net income

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

801,855

10,124

2,279

169,596

53,661,944

386,707

287,902

14,312,066

3,608,928

22,480

* 7,218

979,916

1,525,014

* 3,011

*4

255,931

491,327

* 7,970

* 11,020

75,643

600,200

7,118

* 553

142,387

2,757,661

* 11,929

* 3,719

1,224,249

10,981,020

87,896

199,147

2,930,162

240,916

-* 1,946

116,848

20,909

18,343

-* 1,231

25,999,235

-* 79,362

3,378,867

670,329

1,037,321

-* 55,457

2,113,660

-* 9,294

100,666

39,047

* 22,309

-* 1,968

732,234

-* 6,637

422,563

* 6,941

* 3,610

-* 58

138,364

--90,755

* 2,753

* 19,873

-*2

356,664

--34,026

18,794

* 8,060

-* 1,892

840,319

-* 10,800

* 41,272

* 39,967

* 211,961

-*4

4,101,740

-* 7,908

1,174,729

279,101

209,229

-* 26,868

31,176

180,923

7,565

1,945,094

5,165,310

344,293

141,501

148,590

22,278

13,730

79,283

* 1,012

102,720

32,071

* 10,158

17,023

11,866

* 1,818

173,586

184,124

* 15,731

337,287

1,517,639

109,313

Information...........................................................................................

Publishing industries (except internet)...............................................

Motion picture and sound recording...................................................

Broadcasting (except internet) and telecommunications....................

Internet publishing and broadcasting.................................................

Internet service providers, web search portals,and data processing.

195,125

65,773

34,637

31,592

15,823

47,299

6,979,492

2,088,071

1,595,438

1,471,265

313,502

1,511,217

225,021

44,490

105,865

54,493

* 3,121

17,053

54,453

11,079

40,735

* 1,815

* 12

811

112,463

20,543

44,955

42,475

* 192

4,299

25,363

10,570

8,139

* 2,665

* 151

3,839

512,066

105,442

87,506

162,142

* 2,948

154,027

3,024,488

943,862

614,601

443,451

184,697

837,878

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

Credit intermediation and related activities........................................

469,714

79,258

49,765,512

4,887,670

941,927

113,774

259,079

17,802

1,216,272

112,775

349,366

50,061

3,442,906

237,590

19,913,216

1,741,384

Securities, commodity contracts, and other financial investments.....

Investment bankers and securities dealers......................................

Securities brokers.............................................................................

Commodity contracts brokers and dealers.......................................

Securities and commodity exchanges..............................................

Other financial investment activities (investment advice).................

Insurance agents, brokers, and related activities...............................

Insurance agencies and brokerages................................................

Other insurance related activities.....................................................

88,644

3,878

12,309

2,928

* 18

69,511

301,812

229,432

72,379

17,842,789

885,263

2,974,186

370,441

* 224,349

13,388,551

27,035,053

23,175,424

3,859,629

187,073

7,537

25,953

2,711

* 384

150,488

641,080

569,471

71,609

86,077

6,723

43,449

* 16

-35,889

155,200

138,127

17,072

295,232

11,229

38,536

31,692

* 290

213,485

808,266

748,672

59,594

123,837

* 2,691

24,440

* 657

*7

96,041

175,468

143,878

31,590

770,595

25,982

134,495

* 8,250

* 75

601,793

2,434,721

2,360,056

74,665

5,433,611

570,757

1,107,284

168,865

* 1,593

3,585,112

12,738,222

10,744,526

1,993,696

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

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

Lessors of real estate

(including miniwarehouses and self storage).................................

Offices of real estate agents, brokers,

property managers, and appraisers...............................................

Other activities related to real estate................................................

Rental and leasing services...............................................................

Automotive equipment rental and leasing........................................

Consumer electronics and appliances rental...................................

Formal wear and costume rental......................................................

Video tape and disc rental................................................................

General rental centers and other consumer goods rental................

Commercial and industrial machinery

and equipment rental and leasing..................................................

840,003

802,223

63,625,097

60,885,984

2,319,943

1,858,565

400,145

343,965

930,680

822,986

530,983

468,003

1,507,800

1,316,214

31,090,576

30,504,507

23,102

1,533,765

78,940

22,598

50,889

114,017

57,822

454,579

642,935

136,186

37,780

8,801

*3

* 2,408

4,159

6,747

48,048,447

11,303,773

2,739,113

377,419

* 99

* 42,479

420,416

644,613

1,520,908

258,717

461,378

61,785

* 42

* 2,150

48,238

67,474

286,491

34,876

56,180

* 11,425

-* 46

* 742

* 13,497

666,290

105,807

107,694

* 5,261

-* 2,694

61,706

* 15,955

209,999

143,986

62,980

8,648

-*5

5,912

8,012

993,543

264,849

191,586

* 12,764

-* 6,121

* 36,529

* 57,333

25,752,325

4,297,604

586,069

84,852

* 51

* 11,251

67,595

106,880

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

Air and rail transportation...................................................................

Water transportation...........................................................................

General freight trucking, local............................................................

General freight trucking, long-distance

and specialized freight trucking........................................................

Urban transit.......................................................................................

Interurban and rural bus transportation..............................................

Taxi and limousine service.................................................................

School, employee, and charter bus industry......................................

Other transit and ground passenger transportation...........................

Pipeline transportation.......................................................................

Scenic and sightseeing transportation...............................................

Support activities for transportation

(including motor vehicle towing).....................................................

Couriers and messengers..................................................................

Warehousing and storage facilities....................................................

15,662

1,254,087

281,689

30,470

22,079

40,403

78,839

315,439

Professional, scientific, and technical services............................... 2,183,278

Legal services....................................................................................

275,016

Office of certified public accountants.................................................

46,813

Other accounting services..................................................................

277,418

Architectural, engineering, and related services................................

216,046

Architectural services.......................................................................

76,756

Engineering services........................................................................

74,069

125,295,367

33,900,532

3,213,170

7,286,000

12,165,793

5,417,147

4,760,617

3,340,795

600,340

90,830

224,249

380,706

181,960

117,523

723,672

188,077

15,184

42,400

64,061

30,904

22,546

2,892,611

1,398,911

163,317

163,401

170,653

90,927

50,204

632,247

162,631

23,522

87,985

53,028

38,578

6,076

9,196,686

3,765,676

518,553

721,087

1,320,710

710,050

413,301

61,721,883

16,486,633

1,376,228

3,430,675

4,585,371

1,691,417

2,035,129

Drafting, building inspections, and geophysical surveying...............

44,508

1,155,790

22,972

* 2,740

* 21,048

* 4,070

97,232

523,365

Surveying and mapping (except geophysical) services...................

Testing laboratories..........................................................................

Footnotes at end of table.

19,429

* 1,285

754,171

* 78,067

52,118

* 6,132

* 6,279

* 1,592

4,730

* 3,744

* 3,235

* 1,070

94,904

* 5,223

296,324

* 39,135

23

Sole Proprietorship Returns, 2004

Table 1.--Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net

Income, by Industrial Sectors Classified with the North American Industry Classification System

--Continued

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

Businesses with net income

Rent paid

Industrial sector

Rent paid

Number

Business

Depreciation on machinery

on other

Interest paid

of returns

receipts

deduction 1,2

and

business

deduction 1,3

Payroll 1,4

Net income

equipment 1

property 1

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

149,577

191,675

6,633,893

7,874,626

213,243

234,715

22,549

47,943

88,834

72,580

29,021

16,322

258,617

245,588

2,242,233

5,019,271

Other professional, scientific, and technical services..................... 1,026,734

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

529,879

Scientific research and development services..............................

21,097

Advertising and related services...................................................

103,250

Market research and public opinion polling..................................

28,737

Other miscellaneous services.......................................................

343,770

54,221,354

27,659,193

872,620

5,881,554

1,137,042

18,670,945

1,596,712

774,107

29,076

129,164

13,835

650,530

343,457

147,718

* 1,771

25,497

10,557

157,915

834,914

232,494

* 1,644

108,308

25,661

466,808

259,737

108,275

* 1,815

25,782

* 1,435

122,431

2,366,456

571,103

* 19,267

223,017

84,422

1,468,647

28,581,472

17,649,438

593,965

2,274,191

445,111

7,618,767

1,643,845

1,621,349

22,496

43,701,525

42,102,400

1,599,125

1,760,187

1,603,797

156,391

275,823

260,343

15,480

438,843

429,063

9,780

247,955

216,416

31,539

4,088,011

3,969,889

118,122

16,277,863

15,966,737

311,125

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

379,545

Health care and social assistance.................................................. 1,483,957

Ambulatory health care services.....................................................

728,547

6,385,017

98,388,798

84,697,189

197,540

2,555,082

2,197,793

19,597

498,751

437,572

348,010

3,829,368

3,491,392

16,321

732,088

547,671

378,673

13,371,335

12,355,918

2,977,993

43,796,313

37,684,712

Professional, scientific, and technical service

--Continued

Specialized design services...........................................................

Computer systems design services................................................

Administrative and support and waste management

and remediation services..............................................................

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

Waste management and remediation services...............................

24

Offices of physicians (except mental health specialists)..............

Offices of physicians, mental health specialists...........................

Offices of dentists.........................................................................

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

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

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

155,788

30,868

79,388

32,360

12,137

141,045

29,838,904

2,724,653

28,639,982

4,225,063

2,803,900

7,220,090

543,316

60,596

975,276

142,592

108,791

177,363

168,741

11,753

116,566

47,139

9,782

58,941

1,110,924

168,345

1,026,278

292,743

160,066

398,436

114,330

2,836

280,220

49,421

24,325

45,208

3,758,792

180,112

6,217,984

466,988

512,334

409,206

14,883,180

1,541,268

10,234,813

1,803,021

742,993

4,057,996

Offices of podiatrists.....................................................................

Outpatient care centers and

5,927

1,180,553

20,203

* 8,084

113,928

4,061

121,647

475,430

other miscellaneous health practitioners....................................

Medical and diagnostic laboratories.............................................

Home health care services...........................................................

Other ambulatory health care services

(including ambulance services, blood and organ banks)............

81,650

21,311

146,471

3,403,537

1,512,694

2,524,594

72,152

54,276

33,840

10,788

1,829

3,603

138,900

37,857

17,476

4,030

20,973

1,718

193,999

226,772

227,283

1,769,781

592,832

1,243,696

21,600

623,219

9,387

* 345

26,440

* 548

* 40,803

339,702

Hospitals.........................................................................................

Nursing and residential care facilities.............................................

Social assistance............................................................................

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

11,399

41,889

113,115

589,008

351,432

2,374,206

2,201,397

8,764,574

* 10,786

73,193

44,942

228,368

* 765

3,360

2,775

54,279

* 4,249

93,018

103,693

137,015

* 860

89,081

15,821

78,655

* 3,157

465,153

138,145

408,962

235,657

591,808

1,260,970

4,023,167

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

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

676,031

563,076

21,143,256

16,167,978

752,903

519,300

102,721

52,061

423,605

198,191

96,008

52,288

939,009

540,461

9,071,473

8,062,708

Museums, historical sites, and similar institutions..........................

Amusement, gambling, and recreation industries...........................

* 3,021

109,935

* 74,257

4,901,020

* 1,367

232,236

-50,660

-225,414

-43,719

-398,548

* 43,742

965,023

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

Accommodation..............................................................................

Travel accommodation

(including hotels, motels, and bed and breakfast inns)..............

245,617

23,438

29,544,477

3,015,227

885,340

241,502

199,504

16,312

1,643,369

60,879

467,329

219,911

4,879,350

325,747

3,413,616

561,093

16,349

2,432,727

193,099

10,848

38,137

203,572

287,218

431,088

RV (recreational vehicle) parks and recreational camps..............

Rooming and boarding houses.....................................................

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

4,032

3,056

222,179

383,605

198,895

26,529,250

38,319

* 10,084

643,838

* 4,204

* 1,260

183,191

* 19,969

* 2,773

1,582,490

13,068

* 3,272

247,418

18,519

* 20,010

4,553,604

72,229

57,775

2,852,524

Other services.................................................................................. 1,635,119

Auto repair and maintenance..........................................................

252,943

Automotive mechanical and electrical repair and maintenance....

130,225

Automotive body shops.................................................................

73,696

63,786,547

21,145,775

10,185,391

7,262,105

2,102,675

790,447

337,624

303,647

768,224

207,972

93,910

72,330

3,678,638

710,515

328,179

219,474

586,671

246,618

111,333

74,892

5,715,593

2,580,881

1,422,524

723,514

19,228,424

3,730,555

1,652,555

1,499,617

Other auto repair and maintenance

(including oil change, lubrication, and car washes)....................

Miscellaneous repairs.....................................................................

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

49,023

308,261

1,073,915

3,698,278

13,005,927

29,634,845

149,176

447,385

864,843

41,732

118,344

441,908

162,862

261,111

2,707,013

60,392

99,458

240,595

434,843

1,081,594

2,053,118

578,383

3,461,532

12,036,337

Religious, grantmaking, civic, professional

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

Unclassified establishments...........................................................

199,047

231,636

3,410,095

3,240,458

34,634

81,285

* 6,580

21,335

* 35,898

24,839

* 1,535

10,689

* 48,295

83,164

1,992,736

1,654,474

* Estimate should be used with caution because of the small number of sample returns on which it is based.

¹ Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly

24

understated.

² Includes depreciation claimed on Form 8829.

³ Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.

4

Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.

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

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System

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

Agriculture, forestry, hunting, and fishing

Animal

All

Net income status, item

nonfarm

Total

industries

Mining

Forestry

Support

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Hunting

Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH AND

WITHOUT NET INCOME

20,590,691

281,915

35,273

48,400

70,441

8,665

119,137

125,923

Business receipts, total ¹..................................... 1,139,523,760

15,878,032

1,462,902

5,947,055

2,166,336

211,979

6,089,760

9,202,124

Income from sales and operations ¹.................... 1,122,226,857

8,914,512

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

15,515,105

1,394,826

5,805,868

2,117,396

211,478

5,985,538

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

17,296,903

362,927

68,076

141,187

48,941

*501

104,222

287,612

Business deductions, total 1,2

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

892,402,428

15,232,473

1,747,516

5,587,068

1,874,718

279,968

5,743,203

7,836,034

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

370,951,227

4,864,964

538,467

2,198,929

309,508

61,609

1,756,451

1,879,807

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

35,761,115

450,637

75,045

122,353

*24,660

*24,351

204,229

154,949

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

31,768,695

237,260

*33,150

80,763

*60,722

*651

61,974

76,364

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

238,922,503

3,110,514

407,609

1,041,536

*164,931

*19,619

1,476,819

519,149

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

53,267,879

437,925

28,129

238,773

39,154

*10,836

121,032

325,490

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

50,186,705

1,120,825

75,336

869,100

44,502

*36,041

95,847

989,122

185,267

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

38,955,669

492,197

80,802

153,595

*24,461

*29,889

203,449

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

12,888,316

100,088

11,058

14,875

10,477

4,423

59,254

15,475

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

58,980,274

716,128

63,034

175,492

128,295

6,972

342,335

187,192

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

13,267,025

101,605

5,744

37,693

*706

*1,641

55,821

13,330

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

24,686,741

517,297

54,888

214,093

77,345

6,179

164,792

204,060

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

775,567

6,976

*1

*6,971

--

--

*5

652,450

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

42,900,776

1,663,360

193,695

556,430

349,296

79,022

484,917

722,527

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

2,617,800

21,450

4,159

6,969

*82

*33

10,207

21,840

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

18,864,229

444,033

32,653

190,531

60,483

5,050

155,316

109,190

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

8,959,140

101,240

25,388

24,348

19,445

2,142

29,916

104,725

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

5,997,824

54,166

7,868

7,023

24,081

*688

14,507

20,944

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

5,167,373

105,893

24,606

15,998

21,743

*12,367

31,179

22,336

Other interest paid on business indebtedness....

5,856,393

139,096

13,240

58,982

20,947

*1,882

44,046

66,310

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

12,362,672

62,112

8,707

13,303

9,197

528

30,378

49,620

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

1,202,228

8,002

--

2,890

--

--

*5,113

3,013

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

8,728,363

161,583

30,717

63,917

*4,589

*252

62,107

24,968

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

28,139,206

191,813

35,243

35,460

33,681

*795

86,633

52,068

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

14,762,464

659,372

33,511

321,265

106,430

3,831

194,335

192,034

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

27,302,886

539,356

98,368

114,460

96,581

11,472

218,474

72,787

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

71,068,517

1,243,193

54,300

426,123

*8,421

3,513

750,836

300,709

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

16,036,234

296,504

12,366

96,811

43,280

5,550

138,497

263,747

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

10,317,557

100,975

22,890

14,895

27,636

*760

34,794

36,982

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

21,477,462

224,233

34,922

54,333

31,211

10,734

93,034

90,475

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

98,293,189

2,856,618

439,083

931,936

476,194

59,643

949,762

2,699,160

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

7,807,037

29,488

*827

3,186

*8,641

*883

15,952

12,803

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

1,093,415

5,782

*3,020

*803

*1,147

--

813

1,090

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

38,187

*84

*14

--

--

--

*69

--

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

679,264

4,705

*1,353

*602

*971

--

*1,780

*479

Net income less deficit........................................

1,2

247,567,189

660,369

-282,054

360,087

291,632

-67,714

358,419

1,372,340

Net income 1,2 ......................................................

290,486,159

2,308,533

207,116

578,150

574,269

28,970

920,030

2,080,574

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

42,918,970

1,648,164

489,169

218,063

282,637

96,684

561,610

708,234

Footnotes at end of table.

25

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Agriculture, forestry, hunting, and fishing

Animal

All

Net income status, item

nonfarm

Total

industries

Mining

Forestry

Support

production

and logging

(including

(including forest

breeding

nurseries,

of cats and

timber tracts)

Hunting

Fishing

activities

and

for

trapping

agriculture

Total

and forestry

dogs)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

BUSINESSES WITH NET INCOME

26

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

15,053,252

169,072

11,802

28,058

47,819

5,795

75,599

98,943

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

971,377,184

12,203,678

1,185,643

4,475,983

1,662,031

131,585

4,748,437

7,275,659

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

957,180,075

11,939,861

1,128,473

4,378,259

1,622,161

131,427

4,679,541

7,075,818

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

14,197,110

263,818

57,170

97,724

39,870

*157

68,896

199,841

Business deductions, total 1,2..............................

680,922,716

9,895,158

978,527

3,897,833

1,087,775

*102,615

3,828,408

5,195,499

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

287,540,846

3,673,695

490,658

1,631,510

173,493

*6,101

1,371,932

1,199,404

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

22,889,773

185,749

47,576

43,195

*9,691

*1,141

84,146

83,221

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

25,594,783

194,160

*30,474

61,077

*43,303

*36

59,270

19,541

309,699

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

182,919,335

2,277,075

379,937

689,433

*85,966

--

1,121,739

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

44,088,243

399,298

*26,082

226,978

*21,927

*6,190

118,120

301,981

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

37,131,891

813,928

*46,965

673,981

*22,130

--

70,852

579,637

94,674

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

25,083,180

196,514

40,375

63,154

*9,524

*1,267

82,195

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

9,946,038

51,574

3,228

9,175

9,878

*3,416

25,878

9,621

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

45,032,334

464,218

39,947

94,937

76,969

*3,202

249,163

167,848

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

10,596,604

71,120

*3,890

*22,113

*678

*1,602

42,837

9,762

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

20,263,337

307,528

43,369

153,471

*18,478

*4,911

87,298

157,954

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

630,899

*2,317

*1

*2,312

--

--

*5

541,710

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

28,579,782

873,131

59,300

371,865

181,417

*11,195

249,352

436,814

18,357

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

2,185,157

17,669

*3,574

5,315

*32

--

8,748

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

14,879,267

290,637

19,840

128,225

35,053

*2,473

105,047

90,569

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

6,654,261

51,956

6,615

15,029

8,613

*1,892

19,808

63,774

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

4,741,255

42,679

3,981

4,411

21,802

*672

11,814

17,802

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

2,964,033

52,176

*14,726

5,237

*7,735

*5,146

19,333

19,808

Other interest paid on business indebtedness....

3,684,395

86,334

6,371

38,417

13,856

*51

27,639

32,530

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

9,597,963

38,310

4,713

9,652

7,251

*334

16,360

39,771

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

1,142,795

7,690

--

*2,841

--

--

*4,849

2,294

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

6,839,094

91,956

*2,857

45,785

*1,509

--

41,805

17,372

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

21,976,979

109,266

26,529

13,261

20,711

--

48,765

42,615

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

10,500,594

394,932

9,092

210,519

58,928

*1,616

114,777

141,679

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

20,980,798

368,902

30,868

78,348

75,200

*4,825

179,660

52,088

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

57,861,052

936,044

*46,087

300,691

*638

--

588,628

227,859

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

12,398,929

206,739

8,244

59,886

33,113

*3,523

101,973

205,659

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

7,681,995

58,431

10,681

13,188

13,941

*527

20,094

19,141

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

16,006,315

138,268

21,740

37,640

22,549

*3,325

53,014

68,488

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

69,222,553

1,513,209

120,463

641,040

291,358

*46,922

413,425

1,583,409

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

6,090,685

24,010

--

2,809

*8,123

*883

12,195

12,487

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

783,103

2,026

--

*682

*1,071

--

*274

1,079

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

26,973

--

--

--

--

--

--

--

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

Net income 1,2........................................................

66,388

290,486,159

*1,322

2,308,533

-207,116

*425

578,150

*897

574,269

-28,970

-920,030

*244

2,080,574

Returns with Schedule C-EZ:

26

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

3,703,927

37,609

*990

*4,306

12,313

*2,151

17,850

26,599

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

24,574,808

206,934

*1,999

*71,050

55,475

*6,146

72,264

116,743

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

2,991,929

22,929

*1,779

*156

6,449

--

14,545

17,484

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

Footnotes at end of table.

21,582,879

184,005

*220

*70,894

49,026

*6,146

57,719

99,258

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Mining--continued

Oil

Net income status, item

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Construction

Total

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH AND

WITHOUT NET INCOME

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

103,469

1,135

*1,335

4,527

15,458

11,795

2,586,774

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

6,650,892

507,160

*110,121

467,784

1,466,167

308,232

198,364,423

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

6,399,459

503,085

*110,042

464,557

1,437,370

305,414

196,965,287

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

251,433

*4,075

*79

3,227

28,798

*2,818

1,399,137

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

5,666,958

525,673

*94,442

396,612

1,152,350

275,435

167,342,724

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

971,870

*350,642

*6,124

117,403

433,768

*33,700

87,352,291

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

67,756

*4,571

--

62,462

*20,159

*582

4,461,608

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

15,761

*45,400

--

*9,431

*5,772

--

16,355,362

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

193,251

*95,996

*59

93,348

136,496

*24,114

26,898,873

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

24,689

*83

*4,748

*5,538

290,432

*9,500

30,746,065

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

747,890

*210,380

*1,318

25,535

*4,000

--

14,201,019

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

77,476

*5,789

--

78,911

*23,091

*496

5,310,636

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

4,977

*202

*35

2,332

7,931

*986

982,799

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

126,347

*368

*856

15,770

43,852

*39,365

11,239,455

Business deductions, total

1,2

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

8,325

*3,985

*38

*87

*894

*277

747,887

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

112,913

*16,657

*73

5,372

69,045

*26,717

9,603,708

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

632,275

*7,567

*1,135

5,164

6,309

*28

5,079

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

516,882

33,171

*21,411

45,801

105,262

23,684

7,927,571

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

8,474

*5,266

*862

*1,027

6,210

*250

378,773

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

45,643

*4,144

*1,238

14,696

43,468

8,997

4,245,542

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

93,231

2,688

*232

2,685

5,890

3,201

875,964

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

9,047

*50

*7

90

11,750

*1,316

505,516

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

14,433

*139

--

*3,918

3,846

--

541,826

Other interest paid on business indebtedness....

46,773

*6,569

*370

5,557

7,041

*9,673

822,294

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

29,618

*404

*360

1,199

18,039

5,593

943,559

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

2,015

*141

*156

*214

*488

--

66,090

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

11,332

*1,274

*2,369

3,147

6,847

*10,090

1,378,644

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

41,400

*711

*39

3,297

6,622

*5,311

1,044,355

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

91,576

*15,156

*14,923

23,224

47,154

12,956

1,837,717

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

42,629

*3,913

*2,547

3,812

19,886

15,596

6,928,892

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

91,721

*20,918

*12,443

52,439

123,188

*8,443

10,608,833

2,085,405

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

217,562

5,698

*2,215

13,043

25,229

2,823

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

27,931

*394

*506

1,631

6,520

*9,954

651,253

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

45,714

1,880

*5,874

9,275

27,732

11,906

2,177,276

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

2,452,516

43,737

*20,629

65,403

116,876

42,674

13,099,646

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

7,338

--

--

*29

*5,437

*967

888,515

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

1,028

--

--

*2

*60

*148

105,053

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

--

--

--

--

--

--

*3,037

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

*479

--

--

--

--

--

48,187

Net income less deficit

1,2

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

992,096

-20,424

*15,679

71,173

313,817

41,922

31,038,488

Net income 1,2 ......................................................

1,624,615

*17,971

*18,057

81,668

338,264

99,146

35,130,228

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

632,519

38,395

*2,378

10,495

24,447

*57,224

4,091,740

Footnotes at end of table.

27

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Mining--continued

Oil

Net income status, item

Metal

Nonmetallic

Support

and

Coal

ore

mineral

activities for

gas extraction

mining

mining

mining and

mining

Utilities

Construction

Total

Total

(14)

(15)

quarrying

(9)

(10)

(11)

(12)

(13)

BUSINESSES WITH NET INCOME

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

82,834

*1,051

*354

2,508

12,196

9,146

2,127,410

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

5,353,963

*77,068

*109,798

389,079

1,345,751

251,675

174,956,534

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

5,183,799

*76,815

*109,718

386,058

1,319,428

248,894

173,761,946

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

170,164

*253

*79

*3,021

*26,323

*2,781

1,194,588

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

3,729,761

*59,097

*91,741

307,411

1,007,488

152,547

139,825,752

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

705,509

*1,655

*6,124

91,725

394,390

*33,700

74,558,516

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

32,351

--

--

*31,640

*19,230

*582

3,377,295

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

*9,439

--

--

*6,523

*3,579

--

13,925,151

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

137,088

*151

*59

*70,026

*102,375

*24,114

22,838,715

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

6,976

*69

*4,748

*2,456

*287,731

*9,500

26,010,144

1,2

28

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

556,284

*1,436

*1,318

*19,726

*875

--

12,229,512

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

36,628

--

--

*38,646

*19,400

*496

3,822,301

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

2,681

*38

*35

1,261

5,607

*459

789,339

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

112,887

*358

*425

12,783

41,395

*27,214

9,157,444

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

5,748

*3,893

*38

*83

--

--

586,404

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

87,813

*11

*73

*1,383

68,674

*26,717

8,292,302

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

526,093

*4,264

*1,135

*5,034

5,184

*28

*4,870

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

299,848

*2,441

*21,319

32,959

80,246

*12,243

6,122,083

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

7,274

*3,350

*833

*892

*6,008

*250

288,013

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

36,482

*1,739

*1,233

11,744

39,372

*4,008

3,504,287

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

56,592

*1,248

*184

1,244

4,506

1,911

679,781

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

6,481

*(Z)

*4

*48

11,270

*657

413,879

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

11,965

*101

--

*3,918

*3,824

--

352,428

Other interest paid on business indebtedness....

22,284

*77

*370

3,310

6,489

*451

633,327

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

21,342

*210

*350

1,070

16,799

*2,776

745,561

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

1,480

*3

*156

*177

*479

--

61,974

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

7,237

*42

*1,605

*2,399

6,088

*1,623

1,113,350

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

34,614

*330

*16

*1,389

6,266

*2,792

860,074

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

67,152

*3,041

*14,917

19,529

37,040

*4,212

1,398,919

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

25,298

*3,385

*2,540

3,019

17,848

*1,921

5,753,666

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

53,522

*9,826

*12,227

43,993

108,291

*8,228

8,696,572

1,655,368

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

167,346

*2,494

*1,998

10,456

23,365

2,392

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

12,679

*(Z)

*474

860

5,128

*4,898

514,110

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

33,708

*1,033

*5,859

8,123

19,765

*4,261

1,740,019

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

1,403,089

*19,558

*19,825

49,984

90,953

10,042

10,753,550

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

7,021

--

--

*29

*5,437

*837

752,258

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

1,017

--

--

*2

*60

*148

73,362

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

--

--

--

--

--

--

--

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

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

*244

1,624,615

-*17,971

-*18,057

-81,668

-338,264

-99,146

9,314

35,130,228

Returns with Schedule C-EZ:

28

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

24,272

*971

--

*347

*1,010

*2,026

417,400

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

63,712

*9,414

--

*38,524

*5,093

*3,026

3,135,165

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

14,417

--

--

--

*3,067

*927

403,833

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

Footnotes at end of table.

49,295

*9,414

--

*38,524

*2,026

*2,099

2,731,332

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Construction--continued

Net income status, item

Manufacturing

Residential

Nonresidential

Heavy and

Specialty

building

building

civil engineering

trade

construction

construction

construction

contractors

(16)

(17)

(18)

(19)

Total

Food

Textile

manufacturing

and textile

product mills

(20)

(21)

(22)

BUSINESSES WITH AND

WITHOUT NET INCOME

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

374,490

80,950

47,320

2,084,014

351,204

29,074

4,551

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

46,626,584

9,541,450

7,508,085

134,688,305

25,824,798

3,449,144

316,682

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

46,252,315

9,492,659

7,431,186

133,789,127

25,721,668

3,431,449

316,570

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

374,269

48,792

76,898

899,178

103,130

17,696

*112

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

41,716,258

8,608,931

6,854,190

110,163,345

22,901,141

3,286,342

272,300

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

27,693,714

5,322,635

3,529,938

50,806,005

11,939,926

2,161,857

*142,106

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

2,484,769

224,988

819,182

932,668

1,217,340

194,844

*27,688

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

3,864,065

727,804

189,998

11,573,495

1,370,135

59,100

*12,814

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

9,157,136

1,939,614

1,420,225

14,381,898

7,248,540

1,709,670

*75,552

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

8,852,109

1,553,702

998,363

19,341,891

2,324,883

237,120

*27,702

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

6,453,889

1,121,708

1,063,403

5,562,019

1,067,429

174,395

*10,858

*12,509

Business deductions, total

1,2

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

3,118,255

245,181

961,234

985,966

1,288,401

213,272

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

142,141

26,372

38,329

775,957

269,957

22,835

*2,357

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

1,469,631

437,494

215,430

9,116,899

792,198

65,886

*11,362

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

146,749

32,080

64,176

504,882

147,075

9,062

*3,947

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

1,903,854

381,492

207,476

7,110,886

470,190

18,562

*662

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

*4,467

*3

*152

*458

1,996

--

--

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

1,284,367

275,065

596,285

5,771,854

1,120,661

79,524

*12,537

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

52,799

11,312

13,972

300,690

80,351

10,760

*1,676

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

670,967

182,014

189,924

3,202,637

398,900

33,924

*4,422

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

180,120

44,199

50,641

601,003

193,980

25,283

*3,289

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

58,100

17,412

12,061

417,943

54,034

4,279

*725

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

158,562

32,366

46,825

304,074

127,406

3,696

*82

Other interest paid on business indebtedness....

171,308

39,155

101,503

510,327

154,746

20,281

*3,520

*4,985

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

175,052

37,813

35,671

695,023

228,891

15,874

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

5,802

*390

3,255

56,643

17,227

876

*96

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

213,176

62,918

176,561

925,989

185,809

4,452

*2,016

*1,119

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

134,396

27,218

27,441

855,300

800,530

150,973

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

215,903

114,500

172,597

1,334,718

304,026

42,840

*844

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

1,433,559

257,892

185,862

5,051,578

625,829

29,139

*14,872

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

1,631,208

418,118

396,425

8,163,082

2,040,133

279,903

*25,075

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

348,835

142,299

110,170

1,484,102

470,998

50,037

*3,996

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

80,057

41,931

20,071

509,194

161,405

14,390

*4,300

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

341,072

124,868

79,296

1,632,039

616,414

70,465

*13,395

*12,213

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

2,978,463

563,964

565,088

8,992,131

1,513,243

169,035

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

156,119

15,380

9,888

707,129

168,135

*2,410

--

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

21,881

1,313

*2,330

79,529

24,441

*175

--

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

*49

--

--

*2,988

--

--

--

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

6,833

*434

*1,558

39,362

16,965

--

--

Net income less deficit

1,2

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

4,913,506

932,519

654,918

24,537,546

3,018,241

180,805

44,382

Net income 1,2......................................................

5,741,610

1,220,989

880,302

27,287,328

3,980,453

294,382

*66,763

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

828,104

288,470

225,384

2,749,782

962,212

113,577

*22,382

Footnotes at end of table.

29

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Construction--continued

Net income status, item

Manufacturing

Residential

Nonresidential

Heavy and

Specialty

building

building

civil engineering

trade

construction

construction

construction

contractors

(16)

(17)

(18)

(19)

Total

Food

Textile

manufacturing

and textile

product mills

(20)

(21)

(22)

BUSINESSES WITH NET INCOME

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

302,012

63,983

37,124

1,724,291

224,199

20,124

*2,524

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

40,918,175

7,774,489

6,180,477

120,083,392

21,979,899

2,974,797

*256,523

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

40,628,102

7,743,177

6,120,645

119,270,022

21,937,761

2,964,100

*256,523

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

290,073

31,312

59,833

813,370

42,138

10,696

--

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

35,176,689

6,553,500

5,299,499

92,796,064

18,003,130

2,680,414

*189,759

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

23,946,238

4,172,374

2,629,689

43,810,215

9,774,623

1,816,921

*115,433

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

1,931,653

162,066

549,222

734,354

801,896

93,986

*18,540

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

3,278,847

588,855

166,045

9,891,405

1,052,988

*25,869

*5,896

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

7,757,364

1,285,841

1,039,597

12,755,913

5,812,273

1,482,891

*66,587

Business deductions, total

30

1,2

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

7,158,431

1,391,211

860,193

16,600,308

2,073,541

224,082

*21,652

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

6,054,224

927,288

620,613

4,627,388

884,910

107,958

*8,381

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

2,234,281

182,887

605,981

799,152

850,984

117,866

*5,623

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

110,452

16,698

26,760

635,430

197,214

15,088

*2,314

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

1,101,284

321,099

186,316

7,548,745

567,797

55,026

*4,581

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

129,682

18,888

40,392

397,442

97,005

4,964

*57

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

1,509,347

255,993

182,852

6,344,111

349,541

*16,263

*226

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

*4,338

*3

*148

*381

*1,418

--

--

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

1,044,228

192,719

503,385

4,381,750

810,767

48,571

*10,775

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

47,182

8,242

11,311

221,277

68,004

8,605

--

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

562,223

132,157

156,398

2,653,509

330,840

24,920

*1,200

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

135,230

35,207

33,725

475,620

123,262

17,873

*794

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

39,261

13,259

8,496

352,863

36,256

2,007

*99

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

112,728

13,142

22,521

204,037

99,893

*2,095

*82

Other interest paid on business indebtedness....

120,717

25,128

83,735

403,747

84,660

8,870

*2,820

*3,268

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

134,543

31,088

27,301

552,629

163,521

12,948

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

5,680

*181

1,965

54,148

15,382

*869

--

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

168,675

46,124

162,398

736,153

129,652

2,617

*795

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

109,488

25,148

19,755

705,683

600,827

118,440

--

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

162,958

62,446

146,751

1,026,764

227,498

32,949

*467

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

1,158,539

180,001

156,081

4,259,046

435,253

17,485

*11,128

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

1,379,467

333,621

305,686

6,677,799

1,717,930

227,286

*12,993

*3,111

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

296,803

109,306

72,138

1,177,121

379,130

38,499

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

53,278

33,362

12,310

415,161

115,373

9,203

*546

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

271,418

90,474

63,164

1,314,962

479,995

56,241

*12,506

*3,862

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

2,385,315

422,899

434,686

7,510,650

1,068,034

142,656

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

121,777

13,901

6,389

610,192

112,173

*21

--

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

15,699

*879

*776

56,008

13,808

*6

--

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

--

--

--

--

--

--

--

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

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

*784

5,741,610

-1,220,989

-880,302

8,530

27,287,328

*22

3,980,453

-294,382

-*66,763

Returns with Schedule C-EZ:

30

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

59,516

*6,355

2,940

348,589

47,038

*1,942

*936

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

445,922

*45,394

15,176

2,628,673

303,878

*24,993

*4,532

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

65,838

*40

5,153

332,801

17,082

*(Z)

*2,704

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

Footnotes at end of table.

380,084

*45,353

10,023

2,295,872

286,796

*24,993

*1,828

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Manufacturing--continued

Plastics,

Leather

Net income status, item

Apparel

Petroleum

rubber, clay,

Nonmetallic

and

Wood

Paper

and related

and coal

Chemical

refractory,

mineral

allied

products

products

support

products

manufacturing

and glass

products

products

(23)

Printing

(24)

activities

(25)

(26)

(27)

products

(28)

(29)

(30)

(31)

BUSINESSES WITH AND

WITHOUT NET INCOME

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

29,678

*3,838

51,401

*18

38,532

*407

11,169

18,696

8,578

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

1,585,687

*99,464

3,232,481

*27,629

2,563,190

*130,793

497,290

746,391

992,138

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

1,584,637

*97,263

3,230,167

*27,610

2,549,076

*130,644

466,237

743,412

987,514

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

1,050

*2,201

2,314

*18

14,113

*150

*31,053

*2,979

*4,624

Business deductions, total 1,2 ..............................

1,326,063

*97,834

2,884,487

*28,338

2,364,668

*124,700

443,471

682,236

899,889

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

687,324

*23,263

1,728,382

*16,410

1,047,605

*117,022

197,968

185,793

564,691

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

107,183

*2,491

109,075

*1,589

71,775

*580

*4,985

29,063

*16,860

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

30,790

--

353,266

--

144,011

--

*16,937

12,298

*72,067

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

345,946

*12,457

743,091

*14,702

513,885

*116,609

95,878

136,909

296,703

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

75,040

*9,005

568,442

*821

243,122

--

*61,378

30,707

197,979

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

239,165

*2,341

104,188

*1,349

134,055

--

*22,144

27,663

*8,628

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

110,801

*3,031

149,679

*2,050

59,244

*167

*3,355

50,847

*27,546

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

17,760

*91

26,242

*7

57,117

*55

5,210

20,830

4,035

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

57,069

*1,017

96,443

*24

91,216

*130

15,208

34,126

*16,119

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

3,649

--

6,688

--

27,991

--

*408

*733

*953

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

26,134

*45

15,110

--

43,051

--

*33,624

10,062

*9,873

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

--

--

*20

--

*(Z)

*131

*788

--

--

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

37,148

*2,941

148,656

*2,783

80,031

*727

21,693

52,698

46,891

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

*4,270

*20

9,114

--

*3,625

--

*3,677

*552

*2,232

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

9,455

*76

69,133

*600

40,027

*231

5,911

20,033

20,627

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

6,787

*30

10,802

*153

18,627

*93

13,543

7,574

4,792

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

3,062

--

4,950

*39

3,889

*(Z)

675

4,764

2,802

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

*1,024

--

24,342

*331

*5,771

*26

--

*5,707

*7,148

Other interest paid on business indebtedness....

10,157

*213

9,451

*89

17,586

--

*2,462

14,507

*2,329

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

6,480

*2

16,150

*64

51,527

--

14,705

11,850

2,882

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

*315

*117

*1,340

--

*1,800

*32

*320

*560

--

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

8,584

--

27,163

*693

35,670

*17

*2,452

*1,416

*6,714

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

63,671

*120

67,416

*258

144,532

*20

*4,926

32,315

*5,300

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

9,381

*2

67,524

*547

31,570

*42

6,565

7,013

11,415

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

24,636

*20,627

63,946

*7

132,031

*49

12,353

39,305

13,729

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

136,515

*1,276

170,702

*4,268

197,135

*1,411

*16,517

92,517

100,213

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

29,911

*250

41,061

*582

51,941

*2,937

10,487

23,690

21,144

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

6,609

*173

15,927

*597

11,195

*(Z)

3,216

8,194

*2,798

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

29,403

*123

63,210

*339

76,398

*125

17,523

30,423

10,766

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

132,634

*47,448

149,156

*547

171,906

*1,494

48,252

73,085

41,832

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

*14,074

--

45,504

--

21,718

--

*3,471

*3,972

*605

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

*2,191

--

*8,104

--

*1,505

--

*8

*665

*134

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

--

--

--

--

--

--

--

--

--

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

*263

--

*9,261

--

--

--

*8

*965

--

1,2

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

313,302

*1,629

348,726

*-709

199,361

*6,093

58,692

68,035

92,249

Net income 1,2......................................................

378,246

*8,919

424,441

*272

318,381

*6,596

85,743

121,486

101,850

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

64,945

*7,290

75,715

*981

119,020

*503

27,051

53,451

*9,600

Net income less deficit

Footnotes at end of table.

31

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Manufacturing--continued

Plastics,

Leather

Net income status, item

Apparel

Petroleum

rubber, clay,

Nonmetallic

and

Wood

Paper

and related

and coal

Chemical

refractory,

mineral

allied

products

products

support

products

manufacturing

and glass

products

products

(23)

Printing

(24)

activities

(25)

(26)

(27)

products

(28)

(29)

(30)

(31)

BUSINESSES WITH NET INCOME

32

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

17,677

*1,850

35,298

*7

23,862

*393

5,160

13,482

6,904

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

1,435,185

*97,537

2,893,226

*23,155

2,072,384

*130,570

404,583

609,210

717,978

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

1,434,156

*95,337

2,891,214

*23,140

2,067,639

*130,420

402,818

609,104

717,419

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

*1,029

*2,201

2,013

*15

*4,745

*150

*1,765

*107

*558

Business deductions, total 1,2..............................

1,056,939

*88,618

2,468,785

*22,883

1,754,003

*123,973

318,841

487,724

616,128

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

555,808

*23,257

1,513,395

*13,249

851,456

*117,022

*137,011

135,259

394,972

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

53,065

*2,489

65,389

*904

61,925

*580

*2,095

24,810

*15,278

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

*19,345

--

337,880

--

110,096

--

*14,749

*7,648

*24,614

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

280,939

*12,453

584,040

*11,231

398,406

*116,609

*45,909

110,133

*168,469

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

*35,574

*9,005

521,308

*821

209,791

--

*57,792

*20,331

*197,942

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

236,043

*2,341

93,999

*1,349

110,012

--

*18,138

*7,968

*6,549

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

69,159

*3,031

89,221

*1,055

38,775

*167

*1,672

35,633

*17,880

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

10,897

*91

20,383

*3

49,303

*55

*1,108

15,413

*2,175

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

28,938

*1,017

78,697

--

64,572

*130

*13,648

22,042

*7,550

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

*3,115

--

6,405

--

*13,771

--

*408

*355

*953

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

*15,052

*45

4,086

--

36,408

--

*33,621

*2,195

*908

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

--

--

*20

--

*(Z)

*108

*245

--

--

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

21,608

*7

103,752

*1,147

52,063

*626

18,892

20,837

37,445

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

*4,234

*20

8,774

--

*1,139

--

*3,623

*287

*1,749

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

9,359

*76

63,972

*600

32,795

*231

5,736

17,388

12,371

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

4,604

*30

8,068

*120

14,676

*93

*1,624

4,713

2,847

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

2,424

--

4,140

*39

3,286

*(Z)

*521

*3,114

*744

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

*986

--

20,890

*331

*4,086

*26

--

*5,707

*2,941

Other interest paid on business indebtedness....

*4,081

*213

6,002

--

14,086

--

*1,651

*6,408

*668

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

5,341

*2

11,605

*64

26,617

--

*14,425

9,728

*1,162

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

*315

*117

*972

--

*1,426

*32

*320

*270

--

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

*8,560

--

25,633

*693

22,284

*17

*2,452

*496

*5,410

*1,915

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

32,397

*120

55,715

*258

100,850

*20

*4,198

*26,167

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

7,714

*2

55,843

*547

29,484

*42

*4,463

6,180

4,885

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

14,940

*14,353

55,973

*1

64,608

*49

*11,518

27,581

*10,813

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

134,541

*1,276

162,348

*3,825

141,439

*1,411

*15,684

*85,828

*79,413

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

29,018

*250

37,771

*569

33,907

*2,923

3,900

21,776

12,403

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

1,113

*173

12,166

*578

9,413

*(Z)

*945

*5,170

*2,139

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

27,738

*122

53,102

*318

54,922

*125

10,231

24,446

3,796

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

121,182

*47,446

124,969

*541

111,913

*906

30,180

42,619

*28,263

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

*12,959

--

28,050

--

18,792

--

*917

*3,227

*605

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

*1,928

--

*3,267

--

*1,505

--

*8

*369

*134

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

--

--

--

--

--

--

--

--

--

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

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

-378,246

-*8,919

-424,441

-*272

-318,381

-*6,596

*8

85,743

-121,486

-101,850

Returns with Schedule C-EZ:

32

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

*5,975

--

*11,887

*4

*2,343

*39

*2,958

*4,966

*2,989

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

*55,148

--

*81,273

*97

*5,165

*6,102

*3,386

*19,089

*35,657

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

*13

--

*6,055

--

*709

*159

*1,518

*518

--

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

Footnotes at end of table.

*55,135

--

*75,218

*97

*4,456

*5,942

*1,868

*18,571

*35,657

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Manufacturing--continued

Electrical

Net income status, item

Primary

Fabricated

metal

metal

industries

products

(32)

(33)

Machinery

(34)

Computer and

equipment,

Transportation

Furniture

electronic

appliances, and

equipment

and related

products

components

(35)

(36)

products

(37)

(38)

BUSINESSES WITH AND

WITHOUT NET INCOME

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

*5,133

35,016

24,222

8,370

5,665

10,288

28,287

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

*162,506

3,574,350

2,661,245

230,494

551,221

955,764

1,917,331

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

*161,738

3,578,548

2,653,652

230,442

547,606

954,377

1,915,946

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

*768

-4,198

7,593

*52

*3,615

*1,387

*1,385

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

*121,908

3,261,765

2,245,980

158,587

489,757

919,234

1,484,963

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

*35,324

1,430,011

1,189,511

66,668

279,125

535,153

822,236

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

*6,601

137,847

153,013

*10,669

*41,051

97,470

58,721

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

*131

215,991

202,575

*1,433

*20,041

*61,284

78,272

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

*23,350

792,742

750,492

55,836

167,562

461,503

593,393

Business deductions, total

1,2

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

*13,283

278,856

158,885

*5,851

*49,685

*6,848

123,649

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

--

163,434

75,457

*4,376

*12,447

5,878

28,967

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

*8,041

158,859

150,910

*11,497

*11,659

97,831

60,765

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

*67

30,488

14,694

*3,591

2,357

12,251

16,340

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

*5,352

123,342

69,234

*7,754

27,609

28,117

44,305

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

*25

26,500

*3,989

*2,581

*339

*7,346

19,319

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

*13,183

122,555

79,331

*2,398

*7,745

*29,762

*4,187

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

--

--

--

--

*606

--

*11

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

*20,298

242,239

180,680

9,053

11,183

14,922

74,421

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

--

16,516

18,063

*232

*3,352

*530

*486

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

*2,114

86,738

40,214

*582

8,054

13,916

19,477

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

*1,360

25,004

21,436

*1,022

4,549

12,012

14,936

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

*22

12,699

1,876

2,567

1,301

668

5,908

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

*1,859

20,588

*11,444

--

*388

*27,191

*8,701

Other interest paid on business indebtedness....

*481

22,950

14,266

*611

*5,072

*8,954

5,113

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

*1,353

29,130

15,903

*1,870

4,792

5,626

23,876

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

*11

6,462

*3,150

--

*77

--

*1,050

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

*23

51,698

2,927

*4

*662

*18,970

10,448

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

*162

78,453

63,550

*6,443

12,966

21,605

85,564

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

*19

53,676

21,930

*1,321

1,498

13,462

18,893

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

*8,535

71,842

55,423

13,005

4,379

17,494

46,531

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

*448

369,242

210,582

*6,819

43,745

43,679

85,427

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

*1,749

90,669

52,683

*2,725

9,047

16,972

18,243

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

--

31,024

4,843

*7,617

4,517

5,749

12,666

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

*7,342

85,336

87,846

*7,345

10,064

26,661

45,648

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

*22,181

214,435

64,323

13,075

45,570

48,662

84,859

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

--

20,055

15,479

*356

*750

*9,532

*15,835

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

--

*2,495

*3,639

*453

--

*1,702

*1,428

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

--

--

--

--

--

--

--

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

--

*928

*2,249

*105

*695

*2,185

*305

Net income less deficit

1,2

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

*40,598

312,585

415,265

71,908

69,363

36,531

432,369

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

*45,427

455,896

461,357

*122,184

105,486

95,955

467,551

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

*4,829

143,311

46,092

*50,276

*36,123

59,424

35,183

Net income

1,2

Footnotes at end of table.

33

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Manufacturing--continued

Electrical

Net income status, item

Primary

Fabricated

metal

metal

industries

products

(32)

(33)

Machinery

(34)

Computer and

equipment,

Transportation

Furniture

electronic

appliances, and

equipment

and related

products

components

(35)

(36)

products

(37)

(38)

BUSINESSES WITH NET INCOME

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

*3,851

20,462

19,131

*2,761

4,328

4,400

20,314

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

*158,756

2,820,617

2,406,330

*207,516

504,764

633,854

1,750,824

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

*157,988

2,825,587

2,400,321

*207,517

501,205

632,466

1,749,487

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

*768

-4,971

6,009

--

*3,559

*1,387

*1,337

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

*113,329

2,364,721

1,944,973

*85,332

399,278

537,899

1,283,273

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

*33,929

1,089,606

1,093,927

*42,946

253,874

282,042

721,726

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

*6,601

84,676

127,259

*8,319

*34,905

*46,117

*55,367

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

*131

145,287

190,721

*1,386

*17,694

*4,131

*71,457

Business deductions, total

34

1,2

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

*23,350

580,290

703,462

*38,832

*145,450

282,574

501,144

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

*11,888

253,483

120,918

*176

*49,665

*390

120,447

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

--

135,033

73,077

*742

*11,980

*4,839

*27,595

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

*8,041

109,164

121,510

*6,509

*5,820

*56,010

*54,284

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

*67

15,091

12,921

*2,770

*2,137

*4,808

11,802

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

*5,352

79,681

48,334

*2,812

21,976

*16,550

40,831

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

*25

10,408

*1,860

*2,567

*74

*7,336

11,898

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

*13,183

57,119

77,080

*2,237

*6,969

*29,176

*2,517

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

--

--

--

--

*606

--

--

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

*17,103

198,130

140,254

*1,786

9,034

*9,845

56,052

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

--

15,946

16,873

--

*1,992

*277

*435

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

*1,846

70,363

35,875

*520

7,630

*7,710

18,483

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

*1,295

12,618

12,795

*269

2,031

*10,244

12,310

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

*22

7,806

1,662

*1,699

*1,166

*567

4,817

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

--

19,657

*11,365

--

*154

*14,470

*8,682

Other interest paid on business indebtedness....

*481

8,136

7,638

*387

*4,562

*1,019

*3,869

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

*1,316

18,244

9,589

*918

4,355

*4,945

21,279

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

*11

6,453

*3,051

--

*59

--

*1,050

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

*23

31,023

2,383

--

*239

*18,935

*1,624

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

*162

40,443

50,198

*5,918

*10,504

*17,793

83,944

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

*19

39,400

14,982

*552

*1,202

*1,608

16,414

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

*8,034

46,064

45,627

*1,515

*3,697

*12,130

38,728

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

*448

325,892

185,455

*2,633

*30,452

*24,818

*82,969

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

*490

75,112

48,230

*2,385

*6,971

*8,677

17,132

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

--

25,471

4,379

*5,234

*3,877

*3,533

11,886

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

*7,342

58,105

69,478

*5,826

8,505

*19,345

41,151

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

*22,181

101,042

39,654

*1,059

17,119

*41,448

61,235

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

--

*12,798

*8,758

*352

*86

*622

*11,955

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

--

*1,567

*1,342

*348

--

*9

*1,386

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

--

--

--

--

--

--

--

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

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

-*45,427

-455,896

*13

461,357

-*122,184

-105,486

-95,955

-467,551

Returns with Schedule C-EZ:

34

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

*971

*2,941

*2,166

*936

*50

--

*2,986

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

*4,659

*12,513

*8,632

*6,710

*1,587

--

*6,827

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

--

*112

*2,603

*949

*9

--

*483

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

Footnotes at end of table.

*4,659

*12,402

*6,029

*5,761

*1,579

--

*6,344

Sole Proprietorship Returns, 2004

Table 2.--Nonfarm Sole Proprietorships: Income Statements, by Selected Industrial Sectors

Classified with the North American Industry Classification System--Continued

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

Manufacturing--continued

Wholesale trade (merchant wholesalers)

Durable goods,

Net income status, item

Medical

Other

equipment

miscellaneous

and supplies

manufacturing

(39)

(40)

Total

(41)

Retail trade

Nondurable

Wholesale

including

goods,

electronic

machinery,

including food,

markets

Motor

Total

vehicle and

woods, metals,

fiber,

and agents

parts

etc.

chemicals, .etc.

and brokers

dealers

(42)

(43)

(44)

(45)

(46)

BUSINESSES WITH AND

WITHOUT NET INCOME

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

3,864

34,417

350,824

149,399

118,760

82,665

2,399,442

158,658

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

448,767

1,682,231

40,849,558

18,307,028

16,338,556

6,203,974

187,076,742

37,368,327

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

448,686

1,666,095

40,239,466

17,949,267

16,277,629

6,012,569

184,626,296

37,035,261

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

*81

16,137

610,092

357,761

60,927

191,405

2,450,446

333,066

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

290,629

1,517,990

35,735,351

16,305,397

14,918,485

4,511,469

179,018,027

36,061,020

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

*89,181

620,296

26,637,840

12,337,462

11,596,250

2,704,127

126,466,370

29,743,572

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

*3,024

142,813

2,343,791

1,509,930

727,921

105,940

20,713,293

4,487,924

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

*18,479

70,644

363,436

145,332

202,534

*15,570

2,761,219

661

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Sole Proprietorship Returns, 2004 | Frix