# Sole Proprietorship Returns, 2008

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Sole Proprietorship Returns, 2008
by Adrian Dungan

F

or Tax Year 2008, there were approximately
22.6 million individual income tax returns that
reported nonfarm sole proprietorship activity, a
2.2-percent decrease from 2007. Profits reported on
these returns fell to $264.5 billion in 2008, a 5.7-percent decrease from 2007. In constant dollars, total
nonfarm sole proprietorship profits decreased for the
third consecutive year, by 7.7 percent, after decreasing 1.8 in 2007 and 0.4 percent in 2006. Among
all industrial sectors, the real estate and rental and
leasing sector experienced the most significant
downturn in both profits and receipts from Tax Year
2007 to 2008. Profits in the real estate and rental
and leasing sector, which had decreased by 18.5 percent in 2006 and 17.7 percent in 2007, experienced
an even steeper drop of 36.1 percent in 2008.1 In
current dollar terms, these profits fell from $22.3
billion in 2007 to $14.3 billion in 2008. However,
not all industrial sectors reported declines in profits
for 2008. The professional, scientific, and technical services sector, which represented 28.1 percent
of total sole proprietorship profits at $74.3 billion,
had the largest profits of any sector, increasing 3.8
percent from 2007. Reporting the second largest
profits of any sector was the health care and social
assistance sector, with 18.0 percent of total profits, at
$47.5 billion. This sector also had increased profits
of 3.2 percent.
For the second year in a row, the real estate
and rental and leasing sector reported the largest
percentage decrease in receipts, dropping from
$71.0 billion in 2007 to $58.1 billion in 2008, an
18.2-percent decrease that was more than double its
Adrian Dungan is an economist with the Individual Returns Analysis Section. This article was prepared under
the direction of Jeff Hartzok, Chief.

8.0-percent decrease in 2007. For sole proprietorships as a whole, receipts decreased 0.5 percent,
and deductions increased 0.9 percent. Among all
industrial sectors, the construction sector reported
the largest percentage of total business receipts, with
15.7 percent, while the retail trade sector reported
the largest percentage of total business deductions,
with 17.9 percent. The construction sector reported
a 10.5-­percent decrease in receipts and a 9.0-percent
decrease in deductions, while the retail trade sector had small decreases in r­ eceipts (1.0 percent) and
deductions (0.3 percent). Although not among the
larger of the industrial sectors, the finance and insurance sector reported the largest percentage increase
in both receipts and deductions, with a 19.5-percent
increase in business receipts and a 27.8-percent increase in deductions.

Returns and Receipts

The number of individual income tax returns reporting nonfarm sole proprietorship activity for 2008
decreased 2.2 percent to more than 22.6 million
(Figure A).2 The largest sector in terms of number
of returns��������������������������������������������
was the professional, scientific, and technical services sector. This sector decreased by 0.5
percent to just more than 3.2 million returns. The
construction sector, which was the second largest
sector, had roughly 2.8 million returns, a decrease of
3.7 percent. The only two sectors that experienced
increases in the number of returns were administrative, support, waste management, and remediation
services (2.3 percent) and arts, entertainment, and
recreation (5.0 percent).
Total business receipts (the sum of “income from
sales and operations” and “other business income”)
for all nonfarm sole proprietorship industries decreased 0.5 percent, from $1,324.4 billion to $1,317.4

1 Dungan, Adrian, “Sole Proprietorship Returns, 2007,” Statistics of Income Bulletin, Summer 2009, Volume 29, Number 1, pp. 5–66.

Profits in the real estate and rental
and leasing sector decreased from $27.2 billion in 2006 to $22.3 billion in 2007.
2 For 2008, the 22,614,483 nonfarm sole proprietorship returns accounted for an estimated 25,208,343 nonfarm businesses. For purposes of the statistics, if a proprietor
owned more than one business, the statistics for each business were combined with those of the proprietor’s dominant business and included in the industrial group for that
business activity. When this occurred, the sum of net incomes (for businesses reporting a positive net income) reduced by the sum of net deficits (for businesses reporting a
deficit) yielded the profits for a specific industrial group.
The North American Industry Classification System (NAICS) was used to classify data by industries for 2008. 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.
The North American Industry Classification System for industrial coding was introduced in Tax Year 1998. Due to coding changes, comparisons between data by industries for
1998 to 2008 and 1997 and prior years may show inconsistencies. A reason for this was that several types of sole proprietorships under NAICS were classified in completely
different industrial groups, which makes prior-year comparisons inappropriate. For example, in 1997, finance, insurance and real estate were grouped by Standard Industrial
Classification (SIC) codes as one industry, while the group has been split into two industrial sectors under NAICS. The industrial sectors based on NAICS codes are reported in
Tables 1 and 2.

5

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure A
Nonfarm Sole Proprietorship Returns, Receipts, and Deductions, by Selected Industrial Sectors,
Tax Years 2007 and 2008

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

Number of returns
Industrial sector

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

2007

2008

Total business receipts

Percentage
increase

2007

2008

Percentage
increase

Total business deductions [1]
2007

2008

Percentage
increase

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

23,122.7
2,931.1
2,347.4
340.4
2,436.3
1,154.8
726.0
1,393.4
1,336.8
3,234.5

22,614.5
2,821.7
2,263.3
325.5
2,275.5
1,047.7
693.1
1,278.9
1,217.1
3,218.9

-2.2
-3.7
-3.6
-4.4
-6.6
-9.3
-4.5
-8.2
-9.0
-0.5

1,324.4
230.8
159.7
50.4
198.9
82.1
94.0
71.0
66.9
169.3

1,317.4
206.7
143.1
52.3
196.8
81.1
112.3
58.1
52.9
172.0

-0.5
-10.5
-10.4
3.8
-1.0
-1.3
19.5
-18.2
-21.0
1.6

1,044.3
195.2
131.9
45.6
189.5
71.2
73.8
48.7
44.8
97.8

1,053.7
177.6
119.4
48.3
188.9
71.8
94.3
43.9
38.7
97.8

0.9
-9.0
-9.5
5.7
-0.3
0.8
27.8
-9.9
-13.5
0.1

2,251.0
2,016.4
797.9
1,283.3

2,302.8
1,998.3
788.4
1,347.8

2.3
-0.9
-1.2
5.0

60.3
115.5
12.5
31.0

61.4
118.6
13.2
33.1

1.8
2.7
6.1
6.6

43.9
69.5
7.9
23.5

44.5
71.1
8.3
25.1

1.3
2.4
5.1
7.1

1,068.0

1,094.0

2.4

23.9

24.6

2.8

16.5

17.1

3.2

2,416.2
1,583.3
2,939.2

2,360.1
1,597.9
2,944.3

-2.3
0.9
0.2

84.8
43.6
136.2

83.0
42.9
141.9

-2.1
-1.4
4.2

65.6
30.8
120.1

64.9
29.8
125.6

-1.1
-3.3
4.6

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

billion.3 The construction sector was the largest sector in terms of business receipts and accounted for
15.7 percent of total business receipts in 2008. Its
receipts decreased by 10.5 percent, dropping even
more steeply than last year’s 2.4 percent decline.
This comes after the 11.9-percent and 6.5-percent
increases in 2005 and 2006, respectively. The retail
trade sector, the second largest sector in terms of
business receipts, was also down in total receipts,
declining 1.0 percent from 2007 levels. The two
industries with the largest percentage increases in
business receipts were the finance and insurance
sector and the arts, entertainment, and recreation
sector. They grew by 19.5 percent and 6.6 percent,
respectively, providing a combined total increase of
$20.4 billion in business receipts. For all sectors,
total business receipts for nonfarm sole proprietor-

Statistics for “business receipts, total” in Table 2 represent the total receipts of the business, mainly gross receipts from sales and operations. Business receipts also
include miscellaneous business receipts, such as incidental sales of scrap, shown separately in the statistics as “other business income.” However, business receipts exclude
incidental investment income received through the business. Examples of such incidental investment income are interest, dividends, income or loss from rents or royalties,
and capital or ordinary gain or loss from the sale of investment and business property. Sole proprietors report incidental investment income, in combination with nonbusiness related investment income, as part of their total income on their individual income tax returns.
3

6

ships decreased by $7.0 billion in 2008. For the nonfarm industries experiencing a decline in business
receipts, the total decrease was $42.0 billion. The
construction sector, combined with the real estate,
rental, and leasing sector, accounted for $37.1 billion
of the decrease in business receipts, or 88.3 percent
of the aggregate decline. For the nonfarm industries
experiencing a rise in business receipts, the total
increase was $35.0 billion. The finance and insurance sector alone was responsible for 52.4 percent
of this increase. For the last 3 years, the real estate
and rental and leasing sector has shown the largest
percentage decrease in receipts. For Tax Years 2006
and 2007, receipts decreased 6.9 percent and 8.0
percent, respectively. For Tax Year 2008, the drop
in receipts was even more substantial, falling by 18.2
percent. In constant dollar terms, total business re-

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

ceipts for 2008 decreased 2.6 percent, after 5 straight
years of increases. (Figure B).4

Deductions

Total business deductions (“cost of sales and operations” plus business expenses, including expenses for
home office), in current dollars, increased 0.9 percent
from $1,044.3 billion for 2007 to $1,053.7 billion for

2008 (Figure A).5, 6 In addition to reporting the largest percentage increase in receipts, the finance and
insurance sector also reported the largest percentage increase in total business deductions with 27.8
percent. The largest sector in terms of total business
deductions, the retail trade sector, reported a 0.3-percent decrease in deductions. The second largest
sector, the construction sector, reported a decrease

Figure B
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988
1988–2008
2008

[Money amounts are in billions of dollars]

T t l business
Total
b i
receipts
i t
Tax year

Current
dollars

T t l business
Total
b i
deductions
d d ti
[1]

Constant dollars [2]
Percentage
A
Amount
t
increase

Current
dollars

N t income
Net
i
less
l
deficit
d fi it (profits)
( fit )

Constant dollars [2]
Percentage
A
Amount
t
increase

Current
dollars

Constant dollars [2]
Percentage
increase

A
Amount
t

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

1988

672 0
672.0

887 8
887.8

[3]

545 7
545.7

720 9
720.9

[3]

126 3
126.3

166 9
166.9

(9)
[3]

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

692.8
730.6
712.6
737.1
757.2
790.6
807.4
843.2
870.4
918.3
969 3
969.3
1 021 0
1,021.0
1 016 8
1,016.8
1 029 7
1,029.7
1 050 2
1,050.2
1 139 5
1,139.5
1 222 9
1,222.9
1,278.4
1 278 4
1,324.4
1,317.4

881.9
895.5
843.9
853.3
856.8
876.0
876.6
898.5
912.2
951.8
990 5
990.5
1 021 0
1,021.0
993 3
993.3
990 6
990.6
990 8
990.8
1 044 5
1,044.5
1 084 7
1,084.7
1
1,096.7
096 7
1,105.4
1,076.1

-0.7
1.5
-5.8
1.1
0.4
2.2
0.1
2.5
1.5
4.3
41
4.1
31
3.1
-2.7
27
-0.3
03
[4]
54
5.4
39
3.9
1
1.1
1
0.8
-2.6

560.2
589.2
571.2
583.1
600.8
623.8
638.1
666.5
683.9
716.2
761 4
761.4
806 4
806.4
799 6
799.6
808 9
808.9
820 2
820.2
892 4
892.4
953 4
953.4
1
1,001.1
001 1
1,044.3
1,053.7

713.1
722.1
676.4
675.0
679.7
691.2
692.8
710.1
716.7
742.3
778 0
778.0
806 4
806.4
781 1
781.1
778 2
778.2
773 8
773.8
818 0
818.0
845 7
845.7
858
858.8
8
871.6
860.7

-1.1
1.3
-6.3
-0.2
0.7
1.7
0.2
2.5
0.9
3.6
48
4.8
36
3.6
-3.1
31
-0.4
04
-0.6
06
57
5.7
34
3.4
1
1.6
6
1.5
-1.3

132.7
141.4
141.5
154.0
156.5
166.8
169.3
176.8
186.6
202.3
207 9
207.9
214 7
214.7
217 4
217.4
221 1
221.1
230 3
230.3
247 6
247.6
269 9
269.9
278
278.0
0
280.6
264.5

168.9
173.3
167.6
178.3
177.0
184.8
183.8
188.3
195.6
209.7
212 5
212.5
214 7
214.7
212 3
212.3
212 7
212.7
217 3
217.3
226 9
226.9
239 4
239.4
238
238.5
5
234.2
216.1

1.2
2.6
-3.3
6.4
-0.7
0.7
4.4
-0.6
0.6
2.5
3.9
7.2
13
1.3
11
1.1
-1.1
11
02
0.2
21
2.1
44
4.4
55
5.5
-0.4
04
-1.8
-7.7

[ ] Total business deductions are calculated before subtraction of nonallowable "passive"
[1]
p
activityy losses and anyy "passive
p
loss" carryover
y
from p
prior yyears. 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
S
Survey
off C
Currentt B
Business.
i
Th
The d
deflator
fl t represents
t the
th annuall average off current-weighted
t
i ht d prices,
i
based
b
d on 2000 = 100.
100
[3] Not
N t calculated.
l l t d
[4] Less than 0.05
0 05 percent.
percent
NOTE: Percentage increases were calculated before rounding.
rounding

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:
4

Year
1988
1989
1990
1991
1992
1993

Index
75.7
78.6
81.6
84.4
86.4
88.4

Year
1994
1995
1996
1997
1998
1999

Index
90.3
92.1
93.9
95.4
96.5
97.9

Year
2000
2001
2002
2003
2004
2005

Index
100.0
102.4
103.9
106.0
109.1
112.7

Year
2006
2007
2008

Index
116.6
119.8
122.4

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 C-EZ, Net Profit From Business). Salaries paid to owners are neither deducted as wages paid on Schedule C nor
included as wages received on the Form 1040. 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.
6 Business deductions include the 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.
5

7

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

in deductions of 9.0 percent. The largest decrease in
deductions was reported by the real estate and rental
and leasing sector, with deductions that dropped by
13.5 percent. When accounting for inflation, total
business deductions decreased 1.3 percent in 2008,
marking the first decrease in 5 years.
The cost of sales and operations, which represented 41.3 percent of total 2008 business deductions, increased 2.9 percent since 2007, to approximately $434.9 billion (Figure C). Total business
“expenses” (total business deductions minus the cost

of sales and operations) were $618.8 billion for 2008,
a 0.5-percent decrease since 2007. The main components of total business expenses are highlighted in
Figure D. The largest component was car and truck
expenses, accounting for 13.7 percent of the total.
For 2008, car and truck expenses totaled $85.1 billion, a 3.7-percent increase from 2007. Closely following car and truck expenses, accounting for 12.8
percent of total business expenses, was salaries and
wages, which decreased 0.3 percent from 2007 to
$79.1 billion. The next largest components were rent

Figure C
Components of Nonfarm Sole Proprietorship Business Deductions, Tax Years 2007 and 2008

[Money amounts are in millions of dollars]

Business deductions

Business deductions, total [1,2]
Cost of sales and operations
operations, total
IInventory,
t
b
beginning
i i off year
Cost of labor
Purchases
u c ases
Materials and supplies
Other costs
Inventory
Inventory, end of year
Business expenses
expenses, total [1]
Ad
Advertising
i i expenses
Car and truck expenses
p
Commissions
Contract labor
Depletion
Depreciation [3]
E
Employee
l
b
benefit
fit programs
Home office business deductions [3]
[ ]
Depreciation, Form 8829
Insurance
Legal and professional services
Meals and entertainment deducted
M
Mortgage
t
iinterest
t
t
Other interest p
paid on business indebtedness
Office expenses
Pension and profit-sharing plans
Rent paid on machinery and equipment
Rent paid on other business property
R
Repairs
i
Salaries and wages
g
Supplies
Taxes paid
Travel
Utilities
Other business deductions

2007

2008

Percentage
increase
(3)
( )

((1))

(2)
( )

1,044,343.4
422 684 5
422,684.5
44 469 6
44,469.6
34 14 6
34,514.6
264,234.8
6 , 3 8
61,519.0
64,956.7
47 010 1
47,010.1
621 658 9
621,658.9
15 731 0
15,731.0
82,023.8
,
14,569.2
36,674.4
1 021 1
1,021.1
39 646 0
39,646.0
2 909 5
2,909.5
11,217.6
,
1,439.1
19,290.6
10,934.4

1,053,706.0
434 868 3
434,868.3
46 735 3
46,735.3
31
31,282.1
282 1
280,662.4
80,66
56,592.4
66,776.8
47 180 6
47,180.6
618 837 6
618,837.6
14
14,767.2
767 2
85,054.9
,
13,381.2
35,388.2
1 423 8
1,423.8
41 446 3
41,446.3
2 897 0
2,897.0
11,504.2
,
1,476.0
18,308.1
11,108.8

7,661.5
7
661 5
6 649 0
6,649.0

7,335.9
7
335 9
6 481 1
6,481.1

8,368.2
,
13,297.3
1,279.7
9 526 5
9,526.5
33 613 2
33,613.2
16 170 7
16,170.7
79,380.3
9 380 3
32,325.5
18,183.2
13,134.0
24 856 2
24,856.2
119 516 1
119,516.1

8,181.0
,
12,827.3
1,235.3
9 439 0
9,439.0
34 074 9
34,074.9
15 463 7
15,463.7
79,148.5
91 8
31,831.5
18,066.6
12,740.9
24 674 7
24,674.7
118 421 7
118,421.7

0.9
29
2.9
51
5.1
-9.4
6.2
6
-8.0
8.0
2.8
04
0.4
-0.5
05
-6.1
61
3.7
-8.2
8.2
-3.5
39 4
39.4
45
4.5
-0.4
04
2.6
2.6
-5.1
16
1.6
-4.2
42
-2.5
25
-2.2
-3.5
3.5
-3.5
-0 9
-0.9
14
1.4
-4.4
44
-0.3
-1.5
1.5
-0.6
0.6
-3 0
-3.0
-0.7
07
-0.9
09

[1] Includes
I l d returns
t
with
ith Schedule
S h d l C-EZ,
C EZ "Net
"N t Profit
P fit from
f
Business,"
B i
" attached.
tt h d B
Because only
l a ttotal
t l iis reported
t d ffor b
business
i
d
deductions
d ti
on S
Schedule
h d l C
C-EZ,
EZ th
the ttotals
t l
shown
h
in
i the
th statistics
t ti ti exceed
d the
th sum off the
th detailed
d t il d deductions;
d d ti
the
th detailed
d t il d deductions
d d ti
are, th
therefore,
f
slightly
li htl understated.
d t t d

8

[ ] Total business deductions are before subtraction of nonallowable "passive"
[2]
p
activityy losses and anyy "passive
p
loss" carryover
y
from the p
prior yyears.
[3] Depreciation claimed on Form 8829, "Expenses for Business Use of Your Home," is included in "home office business deductions" and excluded from
"d
"depreciation"
i ti " shown
h
above.
b
NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure D
Nonfarm Sole Proprietorship Total Business Expenses by Type of Expenses, Tax Year 2008 [1]
Travel

2.1

Office expenses

2.1

Commissions

2.2

Total interest

2.4

Advertising expenses

2.4

Repairs

2.5

Taxes paid

2.9

Insurance

3.0

Utilities

4.0

Supplies

5.1

Contract labor

5.7

Depreciation [2]

6.7

Rent paid on machinery, equipment and other business property

7.0

Salaries and wages

12.8

Car and truck expenses

13.7

Other business deductions [3]

25.5
0

5

10

15

20

25

30

Percent of total
[1] Total business expenses equals all business deductions minus cost of sales and operations.
[2] Depreciation claimed on Form 8829, "Expenses for Business Use of Your Home," is included in "home office business deductions" and
excluded from "depreciation" shown above. See footnote 3.
[3] Includes depletion; employee benefit programs; legal and professional services; pension and profit-sharing plans; meals and entertainment;
home office; and other business deductions. Other business deductions also includes all Schedule C-EZ, "Net Profit from Business," deductions
($3.6 billion).
NOTES: Percents are based on an estimated total business expense of $618.8 billion. Detail may not add to 100 percent because of rounding.

on business property, machinery, and equipment (7.0
percent), and depreciation (6.7 percent). For 2008,
rent on business property, machinery, and equipment
expenses increased 0.9 percent to $43.5 billion, while
depreciation expenses rose 4.5 percent to $41.4 billion. Car and truck expenses showed the largest net
increase in share of business expenses, 0.5 percent,
up from 13.2 percent in 2007. Conversely, commissions and contract labor showed the largest net

decreases, 0.2 percent down from 2.3 percent and 5.9
percent, respectively, for 2007.
Historically, constant dollar depreciation increased every year from 1993 through 2003, with
the exception of 1995, when it decreased 1.9 percent
to $28.5 billion (Figure E).7 In 2003, under the
Jobs and Growth Tax Relief Reconciliation Act of
2003, the maximum allowable section 179 deduction (which allows expensing of investment property

The increase in the depreciation deduction for 1993 may be attributed, in part, to a provision of the Omnibus Budget Reconciliation Act of 1993 (OBRA93). The cost of
certain tangible property (as described in Internal Revenue Code section 179) may be treated as a current expense rather than a capital expenditure subject to depreciation
deductions. The provision of OBRA93 (related to these expenses) increased the maximum amount of investment certain small businesses could immediately deduct on
property placed in service after 1992, from $10,000 to $17,500. Following the enactment of this provision, the 179 deduction for all individuals (not just sole proprietors)
filing Form 4562, Depreciation and Amortization, increased 32.4 percent to $13.5 billion for 1993.
7

9

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure E
Nonfarm Sole Proprietorship Net Income, Deficit, and Depreciation, Tax Years 1988–2008

[Money amounts are in billions of dollars]

Current dollars
Tax year

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

Constant dollars [1]

Net income

Deficit

Depreciation
[2]

(1)
145.5
152.4
161.7
162.4
173.5
177.0
187.8
191.7
200.1
210.5
226.2
233.4
245.2
250.2
257.3
269.1
290.5
314.8
326.8
335.1
325.3

(2)
19.2
19.7
20.2
20.9
19.5
20.5
21.0
22.5
23.4
23.8
23.9
25.5
30.5
32.8
36.2
38.8
42.9
44.8
48.7
54.5
60.8

(3)
26.1
24.5
23.7
23.1
23.3
25.0
26.2
26.2
27.4
28.6
29.1
30.6
32.2
33.4
36.6
41.8
42.9
39.1
39.0
39.6
41.4

Net income
(4)
192.2
194.0
198.2
192.3
200.8
200.3
208.1
208.2
213.2
220.6
234.5
238.5
245.2
244.4
247.5
253.9
266.3
279.2
280.3
279.7
265.7

Percentage increase in constant dollars [1]

Deficit

Depreciation
[2]

Net income

Deficit

Depreciation
[2]

(5)
25.4
25.1
24.8
24.8
22.6
23.2
23.3
24.4
24.9
25.0
24.8
26.0
30.5
32.0
34.8
36.6
39.3
39.8
41.8
45.5
49.6

(6)
34.5
31.2
29.0
27.4
27.0
28.3
29.0
28.5
29.2
30.0
30.2
31.3
32.2
32.7
35.3
39.4
39.3
34.7
33.5
33.1
33.9

(7)
[3]
0.9
2.2
-3.0
4.4
-0.3
3.9
[4]
2.4
3.4
6.3
1.7
2.8
-0.3
1.3
2.6
4.9
4.9
0.4
-0.2
-5.0

(8)
[3]
-1.1
-1.3
[4]
-8.8
2.8
0.3
4.8
2.1
0.3
-0.7
4.9
17.3
5.0
8.7
5.1
7.5
1.1
5.1
8.9
9.0

(9)
[3]
-9.6
-6.9
-5.8
-1.4
4.9
2.6
-1.9
2.4
2.9
0.7
3.7
2.8
1.4
8.0
11.7
-0.2
-11.8
-3.5
-1.1
2.3

[1] Constant dollars are based on the overall implicit price deflator for gross domestic product computed and reported by the U.S. Department of Commerce, Bureau of Economic
Analysis, in the Survey of Current Business. The deflator represents the annual average of current-weighted prices, based on 2000 = 100.
[2] Excludes depreciation claimed on Form 8829, "Expenses for Business Use of Your Home."
[3] Not calculated.
[4] Less than 0.05 percent.
NOTE: Percentage increases were calculated before rounding.

in the year of the purchase instead of depreciating it over time) vaulted from $24,000 for 2002 to
$100,000 for 2003. The change led to constant dollar depreciation increasing by 11.7 percent for 2003,
which was the highest growth in depreciation of any
year between 1988 and 2008. But the initial jump in
depreciation was offset in subsequent years by trends
of decreased depreciation. From 2004 through
2007, constant dollar declines of depreciation were
witnessed for all 4 years. In 2004, constant dollar
depreciation deductions decreased by 0.2 percent,
marking the first drop in 9 years. This downward
trend was even more evident in 2005, as constant
dollar depreciation fell by 11.8 percent, followed by

Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 the maximum amount of section 179 deduction (the amount of depreciable property that one can expense for the cost of certain qualifying property) increased from $24,000 for 2002 to $100,000 for 2003, $102,000 for 2004, $105,000 for 2005, and $108,000 for 2006. This
was further expanded to $125,000 for 2007 and $250,000 for 2008 through the Tax Increase Prevention and Reconciliation Act signed in May, 2006. For all individual tax
returns that filed Form 4562, Depreciation and Amortization, the section 179 property deducted as an expense increased by 5.1 percent to $49.8 billion for 2008. The Jobs
Creation and Worker Assistance Act of 2002 introduced 30-percent bonus depreciation and the Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the bonus
percentage to 50 percent, for property placed in service by January 1, 2005. While bonus depreciation was available to sole proprietors, it was generally not as advantageous
as immediate expensing and therefore likely had less effect on their depreciation deductions.
9 The amount deducted as section 179 property on returns that had a Schedule C dropped 4.9 percent to $20.2 billion, from 2007 to 2008. This number does not reflect
depreciation solely deducted on the Schedule C, as this could also include depreciation taken on the Schedule E, Supplemental Income and Loss, the Schedule F, Profit or
Loss from Farming, and the Form 4835, Farm Rental Income and Expenses.
8

10

decreases of 3.5 percent and 1.1 percent in 2006 and
2007, respectively. During this same 4-year period,
section 179 limits gradually increased for inflation, from $102,000 in 2004, to $105,000 in 2005,
to $108,000 in 2006, finally rising to $125,000 in
2007.8, 9 In 2008, the section 179 limit was doubled
to $250,000, which contributed to a reversal in the
previous downward trend in depreciation and helped
to account for a 2.3-percent increase in constant dollar depreciation.
Beginning with Tax Year 1992, certain smaller
businesses could elect not to itemize depreciation
and other business deductions by filing the Schedule
C-EZ, Net Profit from Business, a simplified ver-

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

sion of Schedule C, Profit or Loss from Business.
(Schedule C and Schedule C-EZ are the source of
sole proprietorship statistics.) For Tax Year 2008,
taxpayers could use Schedule C-EZ if they: had business expenses of $5,000 or less; used the cash accounting method; had no inventories; did not report
a loss from the business; had only one business as a
sole proprietor; had no employees; were not required
to file Form 4562, Depreciation and Amortization,
for the business; claimed no deduction for home
business expenses; and had no prior-year disallowed
passive activity losses from the business. Since taxpayers using Schedule C-EZ did not itemize business
deductions, the detailed deductions in Table 2 are
slightly understated and do not add to the totals.
Figure F presents the numbers and percentages of nonfarm sole proprietorship returns filed on
Schedule C-EZ, by industrial sector. For Tax Year
2008, approximately 4.4 million taxpayers filed the
Schedule C-EZ, marking a 1.0-percent decrease from
the number filed for 2007. Of returns filed for 2008
in the administrative and support services sector (the

largest filers of this schedule), taxpayers filed nearly
0.7 million Schedule C-EZ returns, or 29.0 percent of
the total sole proprietorship returns for that sector.10
For 2008, business receipts from Schedule C-EZ filers totaled $31.9 billion, or 2.4 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 $3.6 billion of the total $1,053.7 billion. Despite
having the largest concentration of Schedule C-EZ
filers, deductions reported on the Schedule C-EZ
by the administrative and support services sector
accounted for only 1.2 percent of that sector’s total
business deductions.

Profits and Losses

For 2008, many of the largest principal industrial
sectors reported either significantly decreased or
modestly 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

Figure F
All Nonfarm Sole Proprietorship Returns and Those with Schedule C-EZ, by Selected Industrial
Sectors, Tax Year 2008

[Number of returns is in thousands, money amounts are in millions of dollars]

Industrial sector

Total

Number of returns

Total business receipts

With

Percentage

On

Percentage

Schedule

of

Schedule

of

C-EZ

total

C-EZ

total

Total

Total business deductions [1]
On
Total

Percentage

Schedule

of

C-EZ

total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

All nonfarm industries

22,614.5

4,355.0

19.3

1,317,443.0

31,874.9

2.4

1,053,706.0

3,635.8

0.3

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

2,821.7
325.5
2,275.5
1,047.7
693.1
1,278.9
3,218.9

467.4
39.0
261.1
113.2
85.7
110.6
530.7

16.6
12.0
11.5
10.8
12.4
8.7
16.5

206,688.4
52,343.8
196,844.6
81,073.3
112,312.1
58,051.4
172,025.9

3,434.9
264.4
1,524.0
915.8
777.1
940.1
5,818.2

1.7
0.5
0.8
1.1
0.7
1.6
3.4

177,584.3
48,251.4
188,900.3
71,793.9
94,315.2
43,870.2
97,826.0

357.7
24.3
237.2
112.2
82.7
161.6
542.6

0.2
0.1
0.1
0.2
0.1
0.4
0.6

2,302.8
1,998.3
1,347.8
2,360.1
2,944.3

668.4
505.2
274.2
508.9
790.5

29.0
25.3
20.3
21.6
26.8

61,449.6
118,634.1
33,092.3
82,993.0
141,934.6

4,649.5
4,170.7
1,104.1
3,853.1
4,423.1

7.6
3.5
3.3
4.6
3.1

44,496.7
71,139.6
25,108.0
64,868.4
125,551.9

514.5
388.5
198.3
469.9
546.3

1.2
0.5
0.8
0.7
0.4

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

Based on NAICS, the full name of the administrative and support services sector is administrative and support and waste management and remediation services sector.
The waste management and remediation services portion make up a small percentage of the overall numbers reported under this classification, which are detailed in Table 1.
10

11

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

industrial sector for 2007 and 2008.11 Total profits
decreased 5.7 percent from $280.6 billion for 2007 to
$264.5 billion for 2008. The professional, scientific,
and technical services sector, which had the highest
percentage of total profits of all nonfarm sole proprietorships with 28.1 percent, reported the highest
dollar increase in profits ($2.7 billion). A moderately
smaller sector, the health care and social assistance
sector, reported the second largest dollar increase
in profits for 2008 at $1.5 billion. One of the smallest sectors, the arts, entertainment, and recreation
sector, reported the largest percentage increase in
profits, with 6.5 percent. Interestingly, the real estate and rental and leasing sector, which reported
the largest percentage increase in profits for 2005
(19.4 percent), reported the largest decrease in profits for 2006, 2007, and 2008, with decreases of 18.5
percent, 17.7 percent, and 36.1 percent, respectively.
This sharp downward trend has caused the sector
to lose 57.2 percent of its profits in 2008 compared
with 2005. Some of the other sectors experienced
significant decreases in profit. Construction (-18.3

percent), retail trade (-15.6 percent), wholesale trade
(-14.5 percent), transportation and warehousing (-14.4
percent), and finance and insurance (-10.8 percent) all
had double digit decreases in profit.
In constant dollars, total profits decreased 7.7
percent for 2008, marking the largest single-year
decline during the 20-year period this article covers (Figure B). For the third straight year, profits
as a percentage of business receipts also decreased.
Figure H shows net income less deficits as a percentage of business receipts for 1988 through 2008. In
general, this percentage has increased slightly from
a low of 18.8 percent for 1988������������������������
. Profits as a percentage of business receipts had remained between 20.7
percent and 22.1 percent since 1992, peaking at 22.1
percent in 2005. However, in 2008, the percentage
dropped out of that range, down to its current 20.1
percent. Figure E presents net income and deficit
separately for 1988 through 2008, in current and
constant dollars. For 2008, net income (in constant
dollars) decreased 5.0 percent, and net deficit (in constant dollars) increased by 9.0 percent.

Figure G
Nonfarm Sole Proprietorship Profits, by Selected Industrial Sectors, Tax Years 2007 and 2008
[Money amounts are in billions of dollars]

Net income less deficit (profits)
Industrial sector

2007
(1)

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

Percentage
increase

2008
(2)

(3)

280.6
35.7
27.9
4.8
9.5
11.0
20.2
22.3
22.2
71.6

264.5
29.2
23.7
4.1
8.0
9.4
18.0
14.3
14.1
74.3

-5.7
-18.3
-14.8
-14.5
-15.6
-14.4
-10.8
-36.1
-36.2
3.8

16.5
46.1
4.6
7.6
7.3
19.2
12.7
16.2

17.0
47.5
4.9
8.1
7.6
18.1
13.1
16.6

2.9
3.2
7.9
6.5
3.0
-5.8
3.0
2.6

NOTES: Detail may not add to totals because of rounding. Percentage increases were calculated before rounding.
11 Net income minus deficit (loss) before Federal income tax yields profits.

12

plus any other income.

Proprietors compute their tax on total “taxable income,” which includes their business profits

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure H
Nonfarm Sole Proprietorship Receipts, Deductions, and Profits, Tax Years 1988–2008

[Money amounts are in billions of dollars]

Total business receipts
Tax
year

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

Current
C
dollars

Total business deductions [1]

C
Constant
t t dollars
d ll
[2]
Amount

Percentage
i
increase

(1)

(2)

(3)

672.0
692.8
730.6
712.6
737.1
757 2
757.2
790 6
790.6
807 4
807.4
843 2
843.2
870 4
870.4
918 3
918.3
969 3
969.3
1,021.0
,
1,016.8
1,029.7
1,050.2
1,139.5
1,222.9
1 278 4
1,278.4
1 324 4
1,324.4
1 317 4
1,317.4

887.8
881.9
895.5
843.9
853.3
856 8
856.8
876 0
876.0
876 6
876.6
898 5
898.5
912 2
912.2
951 8
951.8
990
990.5
1 021 0
1,021.0
993.3
990.6
990.8
1,044.5
1,084.7
1 096 7
1,096.7
1 105 4
1,105.4
1 076 1
1,076.1

0
-0.7
0.7
1.5
-5.8
1.1
04
0.4
22
2.2
01
0.1
25
2.5
15
1.5
43
4.3
4.1
1
3.1
-2.7
2.7
-0.3
0.3
[3]
5.4
39
3.9
11
1.1
08
0.8
-2.6
26

Current
C
dollars

Constant
C
t t dollars
d ll
[2]

Net income less deficit (profits)
Current
C
dollars

Net income
less deficit as
a percent of
Percentage
b i
business
i
increase
receipts
i t

Constant
C
t t dollars
d ll
[2]

Amount

Percentage
i
increase

(4)

(5)

(6)

(7)

(8)

(9)

(10)

545.7
560.2
589.2
571.2
583.1
600 8
600.8
623 8
623.8
638 1
638.1
666 5
666.5
683 9
683.9
716 2
716.2
761.4
61
806.4
799.6
808.9
820.2
892.4
953.4
1,001.1
1 044 3
1,044.3
1 053 7
1,053.7

720.9
713.1
722.1
676.4
675.0
679 7
679.7
691 2
691.2
692 8
692.8
710 1
710.1
716 7
716.7
742 3
742.3
778.0
80
806.4
781.1
778.2
773.8
818.0
845 7
845.7
858 8
858.8
871 6
871.6
860 7
860.7

0
-1.1
1.1
1.3
-6.3
-0.2
07
0.7
17
1.7
02
0.2
25
2.5
09
0.9
36
3.6
4.8
8
3.6
-3.1
3.1
-0.4
0.4
-0.6
5.7
34
3.4
16
1.6
15
1.5
-1.3
13

126.3
132.7
141.4
141.5
154.0
156 5
156.5
166 8
166.8
169 3
169.3
176 8
176.8
186 6
186.6
202 3
202.3
20 9
207.9
214.7
217.4
221.1
230.3
247.6
269.9
278 0
278.0
280 6
280.6
264 5
264.5

166.9
168.9
173.3
167.6
178.3
177 0
177.0
184 8
184.8
183 8
183.8
188 3
188.3
195 6
195.6
209 7
209.7
212
212.5
214.7
212.3
212.7
217.3
226.9
239 4
239.4
238 5
238.5
234 2
234.2
216 1
216.1

0
1.2
2.6
-3.3
6.4
-0 7
-0.7
44
4.4
-0.6
06
25
2.5
39
3.9
72
7.2
13
1.3
1.1
-1.1
1.1
0.2
2.1
4.4
55
5.5
-0 4
-0.4
-1.8
18
-7.7
77

18
18.8
8

Amount

19.2
19.4
19.9
20 9
20.9
20 7
20.7
21 1
21.1
21 0
21.0
21 0
21.0
21 4
21.4
22 0
22.0
21.5
21.0
21.4
21.5
21.9
21.7
22 1
22.1
21 7
21.7
21 2
21.2
20 1
20.1

[1] Total business deductions are calculated before subtraction of nonallowable "passive"
passive activity losses and any "passive
passive loss
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
U.S.
S Department of Commerce
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
0 05 percent.
percent
NOTE: Percentage increases were calculated before 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 2008, with 15.7
percent of all business receipts (the fifth year in a
row that this sector was largest). Total receipts for
the construction sector, at $206.7 billion, were 10.5
percent lower than the $230.8 billion reported for
2007, while deductions decreased by 9.0 percent,
resulting in an 18.3-percent decrease in profits, from
$35.7 billion to $29.2 billion (See Figure G). Besides
construction, three other major sectors, namely real
estate, retail trade, and transportation and warehousing, experienced a decline in business receipts for
2008. These declining sectors represented 41.2 percent of all nonfarm industry business receipts. The
second largest industrial sector was retail trade, with
receipts totaling $196.8 billion. This amount was
14.9 percent of all sole proprietorship receipts for

2008, representing a 1.0-percent decrease since 2007.
Deductions and profits also decreased in this sector,
by 0.3 percent and 15.6 percent, respectively. Retail
trade profits totaled $8.0 billion for 2008.
The third largest sector was professional, scientific, and technical services, which accounted for
13.1 percent of sole proprietorship receipts for 2008.
Receipts increased 1.6 percent to $172.0 billion, and
deductions remained virtually the same at $97.8
billion. Although this sector was just the third largest sector in terms of business receipts, the professional, scientific, and technical services sector had
the largest percentage of sole proprietorship profits,
with 28.1 percent (see Figure J). For 2008, the professional, scientific, and technical services sector’s
profits went from $71.6 billion to $74.3 billion, a
3.8-percent increase. The sector with the second
largest profits was health care and social assistance,
whose profits rose to $47.5 billion for 2008. This

13

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure I
Nonfarm Sole Proprietorship Total Business Receipts, by Selected Industrial Sectors, Tax Year 2008

Arts, entertainment, and recreation

2.5

Wholesale trade (merchant wholesalers)

4.0

Real estate and rental and leasing

4.4

Administrative and support and waste
management and remediation services

4.7

Transportation and warehousing

6.2

Other services

6.3

Finance and insurance

8.5

Health care and social assistance

9.0

All other industries

10.8

Professional, scientific, and technical services

13.1

Retail trade

14.9

Construction

15.7
0

5

10
Percent of total

15

20

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

marked a 3.2-percent increase from 2007 levels and
represented 18.0 percent of all sole proprietorship
profits. These sectors were followed by construction
(11.0 percent), other services (6.9 percent), and
finance and insurance (6.8 percent) in terms of
overall sole proprietor profits.
Tax Year 2001 is the first year in which data became available on the number of Limited Liability
Companies (LLC) among sole proprietorship returns.
LLC entities have the limited liability of corporations, but may be taxed as sole proprietorships—­
income and expenses flow through to the owner to
be taxed—if they are owned by a single, individual
member. In 2001, there were approximately 126,000
sole proprietorship returns that indicated status as
an LLC (Figure K). This increased by 15.3 percent
for 2002, 51.3 percent for 2003, 40.4 percent for
14

2004, 47.2 percent for 2005, 33.2 percent for 2006,
23.1 percent for 2007, and 12.8 percent for 2008.
Increases in the actual number of LLCs also help to
illustrate the trend during the last few years. The
count of LLCs increased by approximately 146,000
for 2005, 151,000 for 2006, 140,000 for 2007, and
96,000 for 2008. This illustrates a tapering off of
newly formed LLCs within sole proprietorships. For
Tax Year 2008, the number of these sole proprietorships rose to approximately 843,000. This was a
12.8-percent increase since 2007, representing the
smallest percentage change within the observed
period. The 2008 level of LLCs among sole proprietorship returns accounts for 3.7 percent of the total
nonfarm sole proprietorships, with the total number
of returns with LLCs having increased nearly sevenfold since 2001.

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure J
Nonfarm Sole Proprietorship Total Business Profits, by Selected Industrial Sectors, Tax Year 2008
Wholesale trade (merchant wholesalers)

1.6

Retail trade

3.0

Arts, entertainment, and recreation

3.0

Transportation and warehousing

3.5

Real estate and rental and leasing

5.4

All other industries

6.3

Administrative and support and waste
management and remediation services

6.4

Finance and insurance

6.8

Other services

6.9

Construction

11.0

Health care and social assistance

18.0

Professional, scientific, and technical services

28.1
0

5

10

15

20

25

30

Percent of total
NOTES: Percentages are based on estimated total business profits of $280.6 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.

Summary

Profits for the 22.6 million returns with sole proprietorship activity for Tax Year 2008 declined by
5.7 percent to a level of $264.5 billion. In constant
dollars, total nonfarm sole proprietorship profits decreased 7.7 percent, after decreasing 0.4 percent in
2006 and 1.8 percent in 2007. This was the first time
since before 1988 that sole proprietorship profits (in
constant dollars) had decreased for 3 consecutive
years. The professional, scientific, and technical
services sector had the largest profits of any sector, at
$74.3 billion, representing 28.1 percent of total sole
proprietorship profits, followed by the health care
and social assistance sector, at $47.5 billion or 18.0
percent of total profits. For all sole proprietorships,
receipts decreased 0.5 percent, while deductions increased 0.9 percent. The largest sole proprietorship

industrial sector, based on business receipts, was the
construction sector, accounting for 15.7 percent of receipts. This sector reported a 10.5-percent decrease
in 2008. The finance and insurance sector showed
the largest percentage increase in both receipts and
deductions, reporting a 19.5-percent increase in receipts and a 27.8-percent increase in deductions. After increasing in 2006 and 2007, filings of Schedules
C-EZ decreased 1.0 percent in 2008. The industrial
sector that experienced the most significant downturn
in both profits and receipts from Tax Year 2007 to
2008 was the real estate and rental and leasing sector.
After having the largest percentage decline in profits
in both 2006 (18.5 percent) and 2007 (17.7 percent),
the real estate and rental and leasing sector continued this trend, with a 36.1-percent drop in profits for
2008. Correspondingly, this sector continued to have
15

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Figure K
Number of Nonfarm Sole Proprietorships Registered as Limited Liability Companies (LLCs),
Tax Years 2001–2008
Tax year

2008

842,819

2007

746,885

2006

606,889

2005

455,734

2004

309,665

2003

220,615

2002

145,839

2001

126,437
0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Number of returns with LLCs

the biggest decrease in business receipts. After declines of 6.9 percent in 2006 and 8.0 percent in 2007,
the real estate sector’s reported business receipts fell
another 18.2 percent in 2008.

Data Sources and Limitations

The 2008 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 2009. Returns in
the sample were stratified based on: (1) the presence

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.
12

16

or absence of Schedule C, Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ, Net
Profit From Business, and Schedule F, Farm Income
and Expenses; (2) the larger of positive income or
negative income (i.e., “adjusted gross income” before
statutory adjustments); and (3) tax year. The returns
were selected at rates that ranged from 0.1 percent to
100 percent. The 2008 nonfarm sole proprietorship
data are based on a sample of 91,679 returns and a
population of 22,990,883 returns.12 The corresponding sample and population for the 2007 data were
90,983 and 23,516,241, respectively.

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

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 SOI
Sampling Methodology and Data Limitations, near
the back of this issue, discusses the reliability of estimates based on samples and the use of coefficients
of variation for evaluating the precision of estimates
based on samples.

Figure L
Nonfarm Sole Proprietorships: Coefficients of Variation for Selected Items, by Selected Industrial
Sectors Tax Year 2008
Sectors,

[C ffi i
[Coefficients
off variation
i i are in
i percentages]]

Coefficients of variation
Industrial sector

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

Total business
b siness
receipts
i t

Total business
b siness
deductions
d d ti

Depreciation [1]

Net income

Deficit

(1)
0 53
0.53
1 88
1.88
2 23
2.23
4.44
2.04
2.59
1 90
1.90
2 57
2.57
2 63
2.63
1.69

(2)
0 60
0.60
1 98
1.98
2
3
2.37
55
4.55
2.03
2.66
1 75
1.75
2 81
2.81
2
91
2.91
1.96

(3)
1 21
1.21
3 37
3.37
3
94
3.94
9
30
9.30
4.01
3.99
7 39
7.39
4 68
4.68
4
95
4.95
3.55

(4)
0 75
0.75
2 24
2.24
2
3
2.53
6
5
6.54
3.45
3.46
3 83
3.83
3 15
3.15
3
21
3.21
1.96

(5)
1 33
1.33
4 78
4.78
6
21
6.21
0 68
10.68
3.69
6.01
5 84
5.84
4 30
4.30
4
57
4.57
3.99

2.88
2
88
1 86
1.86
4 53
4.53
3 20
3.20
3.65
2.55
3 05
3.05
2 10
2.10

3.34
3
34
2 01
2.01
5 84
5.84
3
1
3.15
3.59
2.82
3 39
3.39
2 16
2.16

5.44
5
44
3 96
3.96
14 17
14.17
28
5.28
6.26
4.50
6 11
6.11
3 19
3.19

2.85
2
85
2 23
2.23
4 30
4.30
3
4.43
4.76
2.82
3 52
3.52
2 83
2.83

5.84
5
84
7 63
7.63
13 68
13.68
09
5.09
5.84
5.29
6 91
6.91
3 32
3.32

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

17

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008
[All figures are estimates based on samples—money
Businesses with and without net income

Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing

Business
receipts

(1)

(2)

22,614,483 1,317,443,005

Rent paid
on
machinery
and
equipment
[1]

Rent paid
Interest paid
on other
Net income
deduction Payroll [1,4]
business
less deficit
[1,3]
property [1]

(3)

(4)

(5)

42,922,336

9,439,007

34,074,935

(6)

(7)

(8)

14,662,064 110,430,600 264,508,362

307,287

17,590,294

1,862,191

113,910

138,074

287,887

1,681,043

447,873

Animal production (including breeding of cats and dogs)

51,404

1,029,452

239,693

1,679

13,765

30,585

53,659

-553,558

Forestry and logging (including forest nurseries, timber
tracts)

51,577

5,188,799

600,151

46,918

9,217

110,754

505,496

158,618

Fishing

64,343

2,535,299

362,461

16,867

30,964

68,078

29,059

445,556

Hunting and trapping

12,353

191,555

37,200

1,671

12,257

14,161

5,837

-22,976

Support activities for agriculture and forestry

127,610

8,645,191

622,686

46,775

71,870

64,310

1,086,992

420,233

Mining
Oil and gas extraction
Coal mining
Metal ore mining

134,372

17,653,003

1,483,030

63,119

46,165

276,884

791,986

2,912,813

106,666

13,944,820

1,135,814

20,263

36,463

192,308

352,554

2,090,823

330

354,224

23,399

3,270

* 617

3,983

45,381

-15,660

* 662

* 57,369

* 3,231

* 1,267

* 385

* 932

* 9,173

* -8,891

Nonmetallic mineral mining and quarrying

3,028

652,198

117,265

8,324

* 105

41,150

79,262

27,179

Support activities for mining

23,686

2,644,392

203,320

29,996

8,594

38,511

305,616

819,362

12,650

321,981

24,428

* 734

* 6,044

8,006

* 30,881

30,470

Utilities
Construction

2,821,745

206,688,428

6,867,419

1,342,334

1,380,449

2,053,941

24,494,085

29,153,787

Residential building construction

417,996

44,486,914

893,328

197,017

190,671

609,561

4,438,307

3,988,593

Nonresidential building construction

78,938

10,301,953

321,060

69,575

66,624

113,821

1,159,910

939,204

Heavy and civil engineering construction

61,515

8,808,104

534,186

81,422

47,951

271,090

866,551

485,373

2,263,296

143,091,457

5,118,844

994,320

1,075,204

1,059,470

18,029,318

23,740,617
2,694,049

Specialty trade contractors
Manufacturing

340,237

28,109,966

1,335,871

179,108

851,786

345,404

3,479,665

Food manufacturing

35,793

4,156,833

121,123

25,258

103,183

65,652

355,941

50,186

Textile and textile product mills

5,026

342,315

28,243

* 1,513

* 9,729

5,357

* 80,250

-13,308

Apparel

19,905

875,515

27,533

7,911

66,222

4,330

159,028

60,430

Leather and allied products

* 3,783

* 61,881

* 1,007

0

0

* 715

* 9,920

* -9,186

Wood products

32,965

2,332,029

118,918

15,203

50,554

27,647

314,923

160,722

Paper products

* 709

* 28,050

* 28

* 372

0

0

* 2,720

* -7,824

36,181

2,566,657

129,890

11,244

129,911

38,116

279,226

312,791

Printing and related support activities
Petroleum and coal products

468

* 99,206

* 1,410

0

* 64

* 308

* 1,289

5,916

Chemical manufacturing

11,569

1,081,306

54,182

12,197

14,277

11,902

104,411

-39,552

Plastics, rubber, clay, refractory, and glass products

11,868

378,462

24,680

3,386

7,402

5,247

65,624

-21,828

Nonmetallic mineral products

3,271

713,751

39,542

* 842

* 885

9,445

78,098

86,459

Primary metal industries

4,879

602,321

19,351

* 15,949

* 24,997

* 10,804

121,020

12,522

Fabricated metal products

28,335

3,734,667

206,273

10,699

99,360

49,829

541,606

397,452

Machinery

23,019

3,051,994

229,874

30,325

75,824

34,530

409,760

460,528

Computer and electronic products

13,545

413,813

13,634

* 2,551

* 5,930

* 8,217

22,928

133,222

Electrical equipment, appliances, and components

3,318

500,680

4,819

* 10,655

4,976

* 3,745

50,982

65,337

Transportation equipment

10,919

936,764

16,114

6,196

40,522

5,507

211,216

4,255

Furniture and related products

28,835

2,486,626

102,520

5,862

80,349

17,674

245,994

632,157

Medical equipment and supplies

8,302

646,131

9,809

* 7,667

19,780

3,046

46,723

101,023

Other miscellaneous manufacturing

57,548

3,100,965

186,921

11,277

117,823

43,335

378,006

302,745

Wholesale trade (merchant wholesalers)

325,522

52,343,754

766,708

138,173

721,644

343,823

2,202,700

4,118,498

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

135,479

23,705,289

414,866

51,925

323,153

167,371

1,027,938

1,620,013

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

100,241

22,368,567

282,033

56,970

290,702

136,280

968,768

1,461,836

Wholesale electronic markets and agents and brokers

89,801

6,269,898

69,808

29,279

107,789

40,171

205,995

1,036,649

Footnotes at end of table.

18

Number
of returns

Depreciation
deduction
[1,2]

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Industrial sector

All nonfarm industries
Agriculture, forestry, hunting, and fishing

Number
of returns

Business
receipts

(9)

(10)

Depreciation
deduction
[1,2]

16,434,155 1,062,581,267

Rent paid
on
machinery
and
equipment
[1]

Rent paid
Interest paid
Net income
on other
deduction Payroll [1,4]
business
[1,3]
property [1]

(11)

(12)

(13)

(14)

26,158,239

6,906,737

25,408,073

7,841,052

(15)

(16)

85,562,985 325,265,465

169,725

12,627,490

781,411

63,578

84,012

125,851

1,233,481

2,541,190

Animal production (including breeding of cats and dogs)

9,492

601,772

59,692

* 585

5,747

* 9,006

* 29,194

114,828

Forestry and logging (including forest nurseries, timber
tracts)

30,408

3,649,913

310,511

13,756

5,125

51,236

326,663

501,568

Fishing

39,803

1,950,297

134,666

* 11,479

19,085

30,710

* 10,789

775,066

Hunting and trapping

5,045

117,133

* 8,381

* [5]

* 6,690

* 4,039

* 308

35,534

Support activities for agriculture and forestry

84,977

6,308,374

268,161

37,759

47,365

30,859

866,527

1,114,194

Mining

104,824

13,896,902

911,836

36,625

28,222

97,747

523,185

4,411,402

80,470

11,084,680

706,226

14,644

20,734

68,486

246,308

3,358,158

295

86,755

* 3,534

* 687

* 319

* 199

* 1,197

12,492

0

0

0

0

0

0

0

0

Nonmetallic mineral mining and quarrying

2,447

529,721

70,310

* 3,450

* 59

18,572

61,725

97,440

Support activities for mining

21,612

2,195,745

131,766

17,844

7,110

10,490

213,954

943,313

8,895

208,130

* 969

* 714

* 307

* 168

* 11,695

61,210

Oil and gas extraction
Coal mining
Metal ore mining

Utilities
Construction

2,304,865

172,740,182

5,041,603

983,196

1,071,357

1,207,324

19,710,838

35,436,753

Residential building construction

332,398

33,758,359

661,129

139,708

151,414

273,328

3,487,070

5,598,779

Nonresidential building construction

67,760

8,452,764

219,649

45,670

59,950

64,360

937,910

1,272,691

Heavy and civil engineering construction

45,525

5,788,181

359,072

47,615

32,697

97,796

540,103

1,200,161

1,859,182

124,740,879

3,801,752

750,202

827,296

771,841

14,745,755

27,365,122

Specialty trade contractors
Manufacturing

208,296

22,108,550

737,903

120,550

534,201

167,301

2,412,042

4,295,424

Food manufacturing

20,469

2,926,311

44,160

22,147

43,290

18,745

212,125

291,498

Textile and textile product mills

1,886

179,979

* 10,141

* 157

* 128

* 228

* 11,087

33,604

Apparel

10,701

669,070

11,723

* 3,999

49,316

* 2,558

139,184

120,580

Leather and allied products

* 2,697

* 22,869

* 185

0

0

0

0

* 16,942

Wood products

20,818

1,914,912

54,642

* 13,940

41,295

14,761

234,720

276,806

Paper products

*8

* 2,121

0

0

0

0

0

* 2,020

21,510

1,968,698

76,178

6,936

68,005

31,536

191,266

437,018

Printing and related support activities
Petroleum and coal products

* 444

* 99,056

* 708

0

* 64

* 308

* 1,289

* 7,200

Chemical manufacturing

4,688

878,102

3,525

* 1,998

* 6,289

* 4,147

* 49,766

82,500

Plastics, rubber, clay, refractory, and glass products

4,772

182,931

* 2,610

* 272

* 2,016

* 1,437

* 14,019

15,526

Nonmetallic mineral products

2,218

650,077

* 21,233

* 819

* 431

* 8,073

* 64,351

118,070

Primary metal industries

2,930

528,845

* 12,946

* 14,604

* 22,701

* 2,518

* 89,050

71,316

Fabricated metal products

19,947

3,015,826

131,577

6,299

73,318

22,985

401,468

546,663

Machinery

17,369

2,590,381

129,872

14,368

48,652

19,095

333,139

586,768

Computer and electronic products

7,337

300,139

* 1,485

0

* 3,528

0

* 11,700

161,886

Electrical equipment, appliances, and components

3,260

438,282

1,979

* 9,479

* 3,414

* 1,304

* 37,239

88,050

Transportation equipment

5,763

606,916

* 3,502

* 2,335

* 16,698

* 1,349

* 112,891

110,832

Furniture and related products

22,732

2,165,417

94,972

5,642

57,301

12,001

163,089

674,436

Medical equipment and supplies

6,714

479,075

8,767

* 7,658

17,138

1,570

33,987

127,327

32,034

2,489,543

127,697

9,896

80,617

24,685

311,671

526,381

205,647

42,913,616

490,536

96,910

518,098

182,125

1,644,407

5,572,750

Other miscellaneous manufacturing
Wholesale trade (merchant wholesalers)
Durable goods, including machinery, wood, metals, etc.

86,599

19,761,789

263,931

26,444

220,299

88,082

738,698

2,276,297

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

62,503

17,868,712

190,174

48,698

212,766

62,408

786,557

1,994,639

Wholesale electronic markets and agents and brokers

56,546

5,283,115

36,431

21,769

85,033

31,635

119,152

1,301,815

Footnotes at end of table.

19

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money
Businesses with and without net income

Industrial sector

Number
of returns

(1)

(2)

(3)

Retail trade
Motor vehicle and parts dealers
Furniture and home furnishing stores
Electronic and appliance stores

2,275,476
141,986
45,128
32,022

196,844,560
39,539,674
4,331,050
4,836,187

3,001,898
351,469
75,833
67,813

Business
receipts

Rent paid
on
machinery
and
equipment
[1]
(4)
705,954
50,516
29,017
47,314

Rent paid
Interest paid
on other
Net income
deduction Payroll [1,4]
business
less deficit
[1,3]
property [1]
(5)

(6)

(7)

(8)

6,150,702
607,096
312,776
135,706

1,962,780
493,617
62,930
51,639

10,220,579
1,568,934
360,642
557,173

8,012,708
733,028
355,250
346,146

Building material and garden equipment and supplies
dealers

43,178

8,367,667

199,981

26,769

111,089

99,615

736,629

714,661

Food and beverage stores

90,978

28,514,563

337,307

114,481

892,191

208,080

1,800,089

929,414

Health and personal care stores

133,393

8,894,781

136,599

80,091

277,760

67,289

554,241

651,259

Gasoline stations

21,790

28,899,287

254,933

28,366

323,622

204,574

788,983

101,208

Clothing and accessories stores

127,848

11,609,824

173,536

39,458

1,068,134

101,965

798,174

453,277

Sporting goods, hobby, book, and music stores

103,392

7,467,029

148,992

19,665

416,806

88,338

406,818

123,558

General merchandise stores

23,544

2,841,834

65,227

19,904

127,339

47,132

123,905

72,660

Miscellaneous store retailers

529,027

30,631,191

632,071

189,037

1,535,793

344,815

1,921,777

1,875,498

Nonstore retailers

983,191

20,911,475

558,139

61,336

342,389

192,787

603,214

1,656,747

1,047,716

81,073,306

5,568,883

2,309,439

583,160

1,063,150

4,440,942

9,383,446

Air and rail transportation

11,156

1,519,288

420,833

12,983

20,215

87,252

78,553

-291,560

Water transportation

6,787

870,779

112,945

4,055

14,499

30,109

86,319

139,639

212,461

20,208,531

1,466,960

479,195

128,661

241,388

1,750,935

2,218,991

** 40,483,021 ** 2,809,631 ** 1,029,793

** 153,874

Transportation and warehousing

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

** 363,583

** 507,653 ** 1,456,374 ** 4,054,522

**

**

**

**

**

**

**

**

* 944

* 33,682

* 2,653

* [5]

0

* 2,551

* 57

* 3,614

Taxi and limousine service

167,974

5,641,078

151,595

660,280

133,785

76,263

132,209

1,523,255

School, employee, and charter bus industry

13,701

741,861

62,275

* 443

* 1,884

25,549

81,979

149,546

Other transit and ground passenger transportation

23,920

718,765

23,629

* 9,765

* 6,374

* 1,924

55,069

260,082

* 658

* 45,911

* 25,551

0

0

* 1,428

* 217

* -14,599

12,292

508,958

103,026

* 6,028

14,300

22,063

126,084

-83,664

Interurban and rural bus transportation

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

51,560

4,279,539

250,649

52,467

60,023

41,283

315,120

416,012

Couriers and messengers

175,337

5,508,211

97,629

50,311

25,478

13,868

314,656

973,505

Warehousing and storage facilities

7,344

513,683

41,506

4,118

24,068

11,819

43,371

34,105

365,625

11,704,393

520,210

99,339

301,886

93,886

856,692

3,123,461

Publishing industries (except internet)

75,386

1,931,754

35,077

5,103

29,046

24,923

285,398

336,897

Motion picture and sound recording

103,469

3,011,507

278,021

22,971

128,075

22,067

155,603

548,598

Broadcasting (except internet) and telecommunications

51,983

2,647,023

64,572

31,415

71,852

29,426

177,033

455,183

Internet publishing and broadcasting

4,151

177,244

13,479

* 141

* 7,159

* 686

* 11,541

7,401

Information

Internet service providers, web search portals, and
data processing
Finance and insurance
Credit intermediation and related activities
Securities, commodity contracts, and other financial
investments

20

Depreciation
deduction
[1,2]

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
Footnotes at end of table.

130,635

3,936,865

129,062

39,709

65,754

16,784

227,117

1,775,383

693,065

112,312,139

1,052,148

316,196

1,455,536

768,631

4,658,421

18,004,035

72,956

3,166,910

88,809

50,017

83,217

105,044

174,355

229,170

178,338
5,122
17,163
4,959
355
150,738
441,771
338,253
103,518

77,172,761
4,789,463
5,357,286
3,024,548
1,677,363
62,324,101
31,972,467
27,676,834
4,295,633

395,016
5,203
27,275
9,666
11,500
341,373
568,324
468,597
99,726

81,081
3,329
11,870
1,069
* 25
64,788
185,098
171,829
13,269

420,106
19,894
32,725
28,466
* 978
338,042
952,214
868,924
83,289

360,528
23,359
13,360
7,391
6,149
310,268
303,059
259,184
43,876

1,555,061
46,573
118,438
43,649
* 16,610
1,329,791
2,929,006
2,791,382
137,624

5,984,021
320,069
967,341
129,923
-15,302
4,581,990
11,790,845
9,989,961
1,800,883

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Depreciation
deduction
[1,2]

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

Industrial sector

Number
of returns

(9)

(10)

(11)

Retail trade
Motor vehicle and parts dealers
Furniture and home furnishing stores
Electronic and appliance stores

1,178,928
95,809
31,080
21,707

149,566,389
27,100,408
3,078,483
4,090,173

1,615,862
190,039
54,700
52,195

469,491
36,184
22,306
35,323

Business
receipts

Rent paid
Interest paid
Net income
on other
deduction Payroll [1,4]
business
[1,3]
property [1]
(13)

(14)

(15)

(16)

4,046,202
366,565
177,343
99,883

1,024,960
230,751
38,437
47,611

7,124,244
832,286
252,180
451,157

16,853,669
1,800,047
536,726
467,415

Building material and garden equipment and supplies
dealers

29,288

7,011,290

149,357

21,617

82,616

67,530

544,966

861,849

Food and beverage stores

63,642

23,297,348

198,745

86,362

659,644

127,391

1,383,117

1,491,564

Health and personal care stores

57,826

7,794,683

85,204

58,129

215,539

39,438

477,737

1,160,162

Gasoline stations

13,306

19,879,724

123,671

14,018

215,937

116,951

495,067

397,810

Clothing and accessories stores

70,613

9,894,062

116,195

21,875

790,456

55,035

632,658

1,104,690

Sporting goods, hobby, book, and music stores

42,403

5,433,941

59,440

7,460

227,149

32,984

267,667

696,952

General merchandise stores

10,980

2,360,036

26,635

19,595

81,783

29,035

98,506

211,428

Miscellaneous store retailers

285,724

23,472,085

302,210

106,218

933,511

166,524

1,300,281

3,927,931

Nonstore retailers

456,550

16,154,154

257,471

40,404

195,775

73,273

388,621

4,197,095

826,797

65,340,649

3,355,340

1,928,250

434,202

619,469

3,083,319

12,541,505

Air and rail transportation

6,888

969,925

42,380

6,096

3,985

9,093

19,986

234,880

Water transportation

5,288

589,647

23,322

* 149

* 12,316

3,858

* 41,702

223,745

166,520

16,159,729

888,610

424,934

90,734

143,204

1,319,279

2,912,265

** 32,912,494 ** 1,998,233

Transportation and warehousing

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

** 807,660

** 115,315

** 320,713

**

**

**

**

**

**

**

**

* 300

* 13,875

* 208

* [5]

*0

* 2,551

* 57

* 4,761

Taxi and limousine service

149,479

5,126,887

121,060

599,629

125,758

74,001

* 68,771

1,659,025

School, employee, and charter bus industry

10,676

563,351

32,974

* 201

* 1,423

15,975

63,718

157,329

** 17,057

** 560,067

** 11,686

** 7,557

** 5,749

** 1,442

** 39,348

** 289,890

Urban transit
Interurban and rural bus transportation

Other transit and ground passenger transportation
Pipeline transportation
Scenic and sightseeing transportation

** 286,447

** 910,633 ** 5,005,243

**

**

**

**

**

**

**

**

5,078

248,484

* 2,772

0

* 3,773

* 1,732

* 101,435

47,547

Support activities for transportation (including motor
vehicle towing)

36,864

3,138,557

165,579

40,816

34,360

27,765

187,067

584,806

Couriers and messengers

137,396

4,615,802

56,035

39,838

23,027

9,857

299,898

1,297,384

Warehousing and storage facilities

4,804

441,830

12,480

1,369

17,762

9,278

31,424

124,630

243,183

9,800,479

275,632

66,909

212,664

37,706

632,016

4,278,001

Publishing industries (except internet)

52,053

1,515,671

16,947

2,280

15,387

14,030

202,197

568,310

Motion picture and sound recording

59,213

2,504,126

112,407

14,700

84,882

4,058

109,887

1,043,912

Broadcasting (except internet) and telecommunications

34,138

2,035,326

37,239

14,757

55,868

9,436

117,852

603,072

Internet publishing and broadcasting

2,152

120,795

* 6,158

* 141

* 6,594

* 91

* 9,501

31,199

Information

Internet service providers, web search portals, and
data processing
Finance and insurance
Credit intermediation and related activities
Securities, commodity contracts, and other financial
investments
Investment bankers and securities dealers
Securities brokers
Commodity contracts brokers and dealers
Securities and commodity exchanges
Other financial investment activities (investment advice)
Insurance agents, brokers, and related activities
Insurance agencies and brokerages
Other insurance related activities
Footnotes at end of table.

95,626

3,624,561

102,880

35,031

49,932

10,091

192,579

2,031,507

468,187

58,566,141

677,795

249,174

1,240,624

378,748

3,895,765

21,547,741

40,555

2,464,387

39,027

9,730

31,905

46,495

96,694

767,713

104,564
3,226
11,205
3,291
32
86,810
323,068
250,486
72,582

27,205,432
1,501,529
2,138,677
2,981,175
517,187
20,066,864
28,896,322
25,129,756
3,766,566

186,564
3,709
23,216
6,607
* 8,636
144,396
452,204
373,837
78,367

66,995
* 1,075
11,807
* 442
* 25
53,647
172,448
161,064
11,384

335,108
14,101
30,140
17,627
* 296
272,944
873,611
804,035
69,576

98,375
2,341
10,389
1,899
* 967
82,779
233,878
214,881
18,998

1,143,991
25,976
106,822
15,421
* 8,161
987,612
2,655,080
2,535,376
119,704

8,059,177
472,384
1,067,526
255,422
19,924
6,243,921
12,720,851
10,761,594
1,959,257

21

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money
Businesses with and without net income
Rent paid
on
machinery
and
equipment
[1]

Rent paid
Interest paid
Net income
on other
deduction Payroll [1,4]
less deficit
business
[1,3]
property [1]

Industrial sector

Number
of returns

(5)

(6)

(7)

(8)

Real estate and rental and leasing

1,278,868

58,051,397

3,072,063

507,601

1,275,456

1,877,702

2,253,440

14,272,167

(1)
Real estate

Business
receipts

(2)

(3)

(4)

1,217,101

52,854,366

1,736,336

414,685

1,076,041

1,644,849

1,748,128

14,131,187

Lessors of real estate (including miniwarehouses
and self storage)

38,603

1,899,159

310,094

19,849

33,896

431,944

96,006

-131,636

Offices of real estate agents, brokers, property
managers, and appraisers

933,828

39,199,345

1,015,725

336,714

750,333

642,822

1,028,679

13,330,418

Other activities related to real estate

244,670

11,755,862

410,517

58,122

291,812

570,084

623,443

932,405

Rental and leasing services

61,767

5,197,031

1,335,727

92,917

199,415

232,853

505,312

140,980

Automotive equipment rental and leasing

15,480

783,258

220,476

11,803

17,115

35,564

52,315

487

Consumer electronics and appliances rental

* 1,313

* 22,035

0

0

0

0

0

* 17,663

Formal wear and costume rental

* 120

* 62,724

* 6,538

0

* 8,222

* 394

* 9,943

* 6,129

Video tape and disc rental
General rental centers and other consumer
goods rental

4,838

535,595

14,154

* 1,540

53,913

* 5,621

83,718

36,055

22,082

1,709,253

194,985

18,244

64,576

34,512

171,316

217,513

Commercial and industrial machinery and equipment
rental and leasing

17,935

2,084,166

899,573

61,330

55,588

156,762

188,020

-136,866

3,218,914

172,025,851

4,388,918

1,015,291

3,998,108

1,282,716

13,545,172

74,301,434

Legal services

378,111

41,048,470

539,608

243,263

1,697,704

285,018

4,600,343

18,404,926

Offices of certified public accountants

45,107

4,591,731

116,611

26,443

178,217

52,672

773,446

1,960,640

Other accounting services

312,490

8,564,857

297,301

71,599

275,978

137,020

971,073

3,389,912

Architectural, engineering, and related services

255,667

15,040,113

462,183

125,265

275,297

77,854

1,817,547

5,187,363

Professional, scientific, and technical services

Architectural services

99,590

6,863,719

203,488

74,298

133,778

34,295

1,016,653

1,764,504

Engineering services

95,894

5,508,512

175,504

39,555

91,798

28,723

553,202

2,205,786

Drafting, building inspections, and geophysical
surveying

42,017

1,617,661

33,858

* 1,830

19,088

5,928

94,038

907,259

Surveying and mapping (except geophysical)
services

14,353

678,569

38,460

* 9,520

21,914

* 3,729

110,946

229,460

Testing laboratories

3,812

371,653

10,872

* 63

8,718

* 5,180

* 42,707

80,354

250,692

8,897,310

270,733

56,465

174,746

63,843

451,847

2,176,040

Specialized design services
Computer systems design services

240,391

9,992,920

273,599

59,262

161,548

75,362

683,301

4,024,778

Other professional, scientific, and technical services

1,736,456

83,890,449

2,428,884

432,993

1,234,619

590,948

4,247,615

39,157,776

Management, scientific, and technical consulting
services

950,327

47,388,860

1,082,875

232,025

556,595

288,049

1,523,043

26,632,700

Scientific research and development services

32,799

1,179,505

44,206

2,392

23,896

12,319

106,201

461,188

Advertising and related services

120,600

7,650,421

179,969

31,775

94,710

86,449

317,102

1,936,608

Market research and public opinion polling

29,687

979,162

10,320

* 14,343

10,861

* 9,267

70,237

410,210

Other miscellaneous services

603,043

26,692,501

1,111,514

152,458

548,557

194,864

2,231,032

9,717,070

Administrative and support and waste management
and remediation services
Administrative and support services
Waste management and remediation services
Educational services
Footnotes at end of table.

22

Depreciation
deduction
[1,2]

2,302,805

61,449,597

2,634,207

415,531

824,253

480,379

6,737,037

16,957,186

2,277,252

59,416,628

2,402,664

392,714

806,043

440,250

6,502,640

16,792,128

25,554

2,032,969

231,543

22,818

18,209

40,129

234,397

165,058

620,222

9,697,644

298,229

60,162

538,731

84,688

504,421

3,031,251

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Depreciation
deduction
[1,2]

Rent paid
on
machinery
and
equipment
[1]

(11)

Rent paid
Interest paid
on other
Net income
deduction Payroll [1,4]
business
[1,3]
property [1]

Industrial sector

Number
of returns

(12)

(13)

(14)

(15)

(16)

Real estate and rental and leasing

776,962

46,885,202

1,357,965

356,043

852,352

649,857

1,346,859

20,132,759

Real estate

745,158

43,082,600

923,688

293,256

723,191

557,381

971,475

19,296,407

Lessors of real estate (including miniwarehouses
and self storage)

16,366

1,063,194

130,729

12,496

10,552

131,132

27,893

314,198

Offices of real estate agents, brokers, property
managers, and appraisers

595,833

34,435,160

626,095

256,619

567,998

287,352

688,850

16,010,274

Other activities related to real estate

132,959

7,584,247

166,864

24,141

144,641

138,897

254,731

2,971,936

Rental and leasing services

31,804

3,802,601

434,277

62,786

129,161

92,476

375,384

836,352

Automotive equipment rental and leasing

9,577

501,922

96,174

* 5,865

* 298

15,969

* 29,097

76,854

Consumer electronics and appliances rental

* 1,313

* 22,035

0

0

0

0

0

* 17,663

(9)

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

Business
receipts

(10)

* 79

* 61,725

* 6,166

0

* 7,249

* 394

* 9,943

* 7,477

2,325

420,238

* 9,356

* 1,540

* 41,947

* 1,492

* 64,219

61,065

10,621

1,517,459

89,608

* 14,437

43,513

21,658

148,017

364,933

7,890

1,279,221

232,973

40,944

36,153

52,963

124,107

308,361

2,381,482

158,908,361

3,150,550

762,485

3,279,390

864,916

11,519,460

80,645,299

Legal services

302,390

39,527,283

474,589

215,822

1,573,548

245,028

4,256,881

19,039,652

Offices of certified public accountants

35,730

4,456,821

98,424

25,715

153,908

49,111

745,836

2,006,263

Other accounting services

253,952

8,097,016

243,790

54,088

228,150

101,535

908,566

3,721,592

Architectural, engineering, and related services

194,522

13,609,539

351,739

70,617

210,257

54,337

1,472,398

5,673,583

Architectural services

71,265

5,868,175

141,844

29,473

103,136

22,664

770,889

2,009,016

Engineering services

76,339

5,191,342

138,336

29,732

67,844

17,681

461,836

2,378,400

Drafting, building inspections, and geophysical
surveying

32,091

1,530,041

26,918

* 1,830

19,088

5,517

86,020

949,800

Surveying and mapping (except geophysical)
services

12,552

660,178

35,301

* 9,520

* 14,193

* 3,729

110,946

250,233

Testing laboratories

2,275

359,804

* 9,341

* 62

* 5,996

* 4,747

* 42,707

86,134

171,345

7,640,817

156,593

24,261

99,622

28,527

370,619

2,675,052

Professional, scientific, and technical services

Specialized design services
Computer systems design services

178,237

9,287,681

189,016

46,343

129,129

35,195

573,335

4,488,596

Other professional, scientific, and technical services

1,245,306

76,289,203

1,636,400

325,639

884,775

351,183

3,191,825

43,040,561

Management, scientific, and technical consulting
services

680,319

43,593,208

745,813

160,814

364,110

123,042

1,071,180

28,759,033

Scientific research and development services

23,233

1,006,501

33,276

* 2,192

13,535

* 868

56,068

601,569

Advertising and related services

90,630

6,977,588

140,797

25,659

88,272

80,293

219,567

2,203,234

Market research and public opinion polling

18,612

946,689

5,522

* 14,211

10,448

* 6,189

68,084

457,006

Other miscellaneous services

432,511

23,765,218

710,993

122,763

408,410

140,791

1,776,926

11,019,719

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

1,834,717

53,790,774

1,727,779

275,198

594,383

311,977

5,310,774

20,352,614

1,814,685

52,159,878

1,566,905

260,514

579,350

285,844

5,160,175

20,072,775

20,032

1,630,896

160,874

14,684

15,033

26,133

150,599

279,839

490,245

7,276,547

136,239

37,297

350,363

25,456

265,983

3,800,109

Footnotes at end of table.

23

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money
Businesses with and without net income
Rent paid
on
machinery
and
equipment
[1]

Rent paid
Interest paid
on other
Net income
deduction Payroll [1,4]
business
less deficit
[1,3]
property [1]

Industrial sector

Number
of returns

(1)

(2)

(3)

(5)

(6)

(7)

(8)

Health care and social assistance

1,998,278

118,634,052

3,035,635

551,649

5,158,149

1,240,154

17,209,350

47,539,320

Ambulatory health care services

990,181

97,029,582

2,339,402

463,933

4,494,934

844,758

14,635,290

40,488,113

Offices of physicians (except mental health
specialists)

183,723

33,527,006

603,886

171,398

1,281,486

187,411

4,198,881

16,483,353

Offices of physicians, mental health specialists

27,713

2,571,012

56,142

25,542

136,806

16,256

152,335

1,418,970

Offices of dentists

85,583

29,628,238

917,252

92,432

1,205,410

390,510

6,640,932

10,071,816

Offices of chiropractors

35,894

4,670,025

139,067

44,454

406,620

62,465

606,422

1,709,094

Offices of optometrists
Offices of mental health practitioners and social
therapists

17,566

3,308,192

117,316

18,068

232,412

31,529

560,963

836,782

185,643

9,222,844

174,944

29,242

622,391

47,587

671,919

4,712,889

8,216

1,614,761

44,270

6,835

199,555

16,879

234,877

549,256

158,690

5,473,489

135,302

40,043

241,679

46,138

360,214

2,331,371

Medical and diagnostic laboratories

31,927

1,405,247

49,867

7,129

68,238

11,787

284,786

411,343

Home health care services

227,282

4,514,655

76,712

24,320

74,180

26,679

749,689

1,729,329

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

27,944

1,094,113

24,644

4,469

26,156

7,517

174,272

233,911

Hospitals

10,803

565,203

8,056

* 784

* 10,115

* 1,717

* 65,198

347,079

Nursing and residential care facilities

61,028

4,635,311

156,891

38,515

247,332

242,833

1,163,012

347,555

Social assistance

147,898

3,187,864

77,222

4,382

154,132

15,659

234,433

1,410,784
4,945,788

Offices of podiatrists
health practitioners

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

Business
receipts

(4)

788,368

13,216,093

454,064

44,035

251,635

135,188

1,111,417

1,347,779

33,092,332

1,920,727

219,389

1,140,219

382,020

1,707,991

8,057,508

1,094,030

24,608,291

1,376,261

152,909

521,893

179,918

877,064

7,560,686

Museums, historical sites, and similar institutions

2,988

56,425

901

* 97

* 8,118

* 392

* 4,692

15,929

Amusement, gambling, and recreation industries

250,761

8,427,616

543,564

66,383

610,209

201,709

826,235

480,892

434,168

47,870,153

2,087,498

427,589

3,398,744

1,068,023

8,346,380

649,056

54,627

6,002,638

762,610

27,434

241,975

484,168

926,034

-106,584

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

30,796

4,635,708

619,581

24,939

125,858

408,268

763,628

-62,093

RV (recreational vehicle) parks and recreational camps

11,157

849,367

84,862

370

87,730

39,971

81,680

-6,285

Rooming and boarding houses

12,673

517,563

58,168

2,125

* 28,387

35,930

80,726

-38,206

Accommodation, food services, and drinking places
Accommodation

Food services and drinking places

379,541

41,867,514

1,324,888

400,155

3,156,769

583,855

7,420,346

755,640

2,360,060

82,993,026

2,778,315

877,432

5,968,711

968,644

7,062,906

18,135,387

Auto repair and maintenance
Automotive mechanical and electrical repair
and maintenance

351,027

23,975,616

992,097

226,304

934,504

435,952

2,599,805

2,235,510

176,570

12,095,924

516,359

66,854

441,268

216,993

1,200,172

1,067,921

Automotive body shops

85,132

7,046,601

214,190

81,222

310,886

117,615

886,774

818,614

Other services

Other auto repair and maintenance (including oil
change, lubrication and car washes)
Miscellaneous repairs
Personal and laundry services

89,325

4,833,090

261,547

78,228

182,350

101,344

512,859

348,975

411,150

16,068,515

514,519

95,024

397,899

132,994

1,267,710

2,771,294

1,271,699

556,104

4,636,308

399,699

3,195,390

13,128,583

1,597,882

42,948,895

Religious, grantmaking, civic, professional
and similar organizations

245,487

3,243,046

51,767

9,017

25,816

* 9,353

* 25,912

1,682,136

Unclassified establishments

484,209

5,744,085

172,191

87,040

111,301

63,992

180,997

2,001,777

Footnotes at end of table.

24

Depreciation
deduction
[1,2]

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 1. Nonfarm Sole Proprietorships: Business Receipts, Selected Deductions, Payroll, and Net
Income, by Industrial Sectors, Tax Year 2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Businesses with net income

Depreciation
deduction
[1,2]

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

Rent paid
Interest paid
on other
Net income
deduction Payroll [1,4]
business
[1,3]
property [1]

Industrial sector

Number
of returns

(9)

(10)

(11)

(15)

(16)

Health care and social assistance

1,655,574

110,275,817

2,395,473

439,759

4,493,294

908,280

15,389,857

49,855,675

Ambulatory health care services

811,894

92,064,135

1,940,083

395,035

4,009,387

710,666

13,561,504

41,846,050

Offices of physicians (except mental health
specialists)

153,658

32,124,499

525,453

154,931

1,204,200

168,851

3,952,588

16,770,471

Offices of physicians, mental health specialists

24,199

2,497,861

50,348

23,525

134,519

15,971

146,218

1,436,878

Offices of dentists

74,801

28,711,069

809,029

69,230

1,127,368

341,025

6,441,551

10,223,917

Offices of chiropractors

31,671

4,486,293

107,049

43,400

369,117

60,154

591,538

1,748,283

Offices of optometrists
Offices of mental health practitioners and social
therapists

14,998

3,051,562

86,000

15,776

205,915

24,002

512,117

887,699

146,024

8,722,252

146,344

25,863

545,825

26,155

552,415

4,849,572

6,547

1,526,364

36,812

5,060

136,952

16,879

221,391

584,136

126,539

5,051,200

91,768

29,638

179,748

31,464

291,112

2,597,497

Medical and diagnostic laboratories

26,246

1,206,377

24,906

5,284

53,333

5,370

240,594

451,393

Home health care services

187,757

3,829,796

47,858

18,201

35,900

13,819

468,054

2,012,025

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

19,454

856,862

14,516

* 4,127

16,511

6,976

143,926

284,178

Hospitals

10,372

558,948

7,013

* 784

* 10,106

* 1,717

* 64,597

349,246

Nursing and residential care facilities

42,208

3,155,366

84,224

13,880

159,871

108,812

708,860

630,327

Social assistance

111,604

2,988,411

60,436

2,590

135,149

12,075

223,296

1,569,040

Child day care services

679,496

11,508,956

303,716

27,471

178,781

75,010

831,601

5,461,012

840,486

25,748,112

742,307

105,258

563,849

89,512

702,841

12,551,749

Performing arts, spectator sports, and related industries

667,004

20,485,270

612,819

81,760

304,495

60,588

418,482

10,997,067

Museums, historical sites, and similar institutions

* 1,028

* 50,327

* 276

* 72

* 6,772

* 13

* 949

* 28,552

Amusement, gambling, and recreation industries

172,454

5,212,516

129,212

23,426

252,581

28,911

283,409

1,526,130

Offices of podiatrists
health practitioners

Arts, entertainment, and recreation

Accommodation, food services, and drinking places

Business
receipts

(13)

(14)

270,338

32,951,914

846,781

260,709

2,216,026

462,052

5,070,156

3,944,725

Accommodation

25,815

3,640,560

281,469

13,510

190,420

181,199

410,302

686,142

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

15,774

2,734,418

224,711

13,018

82,769

166,042

298,479

534,678

RV (recreational vehicle) parks and recreational camps

5,950

571,095

37,779

* 244

* 80,382

11,681

69,461

75,531

Rooming and boarding houses

4,090

335,047

18,980

* 248

* 27,269

* 3,475

* 42,362

75,934

Food services and drinking places

244,523

29,311,354

565,312

247,199

2,025,606

280,853

4,659,855

3,258,583

Other services

1,875,687

71,197,612

1,816,699

623,827

4,826,981

652,549

5,553,274

21,745,190

Auto repair and maintenance
Automotive mechanical and electrical repair
and maintenance

251,094

19,359,248

625,607

157,995

684,940

294,689

2,009,910

3,175,658

130,924

9,854,183

339,554

47,494

346,052

178,890

958,175

1,507,387

Automotive body shops

59,269

5,902,853

158,525

71,316

201,578

67,740

700,010

1,017,755

Other auto repair and maintenance (including oil
change, lubrication and car washes)
Miscellaneous repairs
Personal and laundry services

60,901

3,602,213

127,529

39,186

137,310

48,058

351,725

650,516

309,113

13,857,046

328,035

75,108

245,801

100,342

1,030,303

3,531,687

257,518

2,513,061

15,037,845

1,315,480

37,981,318

863,056

390,724

3,896,241

Religious, grantmaking, civic, professional
and similar organizations

199,382

3,084,125

33,562

* 4,221

24,610

* 647

* 25,908

1,921,225

Unclassified establishments

389,936

4,694,275

62,000

26,543

36,936

34,407

106,879

2,776,475

*Estimate should be used with caution because of the small number of sample returns on which it is based.
**Data combined to prevent disclosure of taxpayer information.
[1] Excludes amounts reported on Schedule C-EZ filed by certain small businesses not required to itemize their business deductions. Therefore, totals shown may be slightly
understated.
[2] Includes depreciation claimed on Form 8829, "Expenses for Business Use of Your Home."
[3] Interest paid is the sum of mortgage interest and other interest paid on business indebtedness.
[4] Payroll is the sum of salaries and wages plus the cost of labor reported as part of cost of sales and operations.
[5] Less than $500.
NOTE: Detail may not add to totals because of rounding.

25

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year 2008
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Agriculture, forestry, hunting and fishing

Net income status, item

All
nonfarm
industries

(1)

Total

Animal
production
(including
breeding
of cats and
dogs)

Forestry
and logging
(including
forest
nurseries,
timber tracts)

(2)

(3)

51,404
1,029,452
962,700
66,752
1,594,845
235,514
90,113
* 32,131
108,044
28,317
58,182
81,272
19,504
112,097
9,840
22,455
*2
233,173
1,740
27,111
72,053
6,099
17,628
12,957
6,789
* 59
1,679
13,765
25,787
58,820
21,528
14,633
27,148
24,288
606,195
21,937
6,520
0
* 14,529
-553,558
114,828
-668,386

Fishing

Hunting
and
trapping

Support
activities
for
agriculture
and forestry

(4)

(5)

(6)

(7)

51,577
5,188,799
5,120,218
68,581
5,036,388
1,400,383
149,266
136,281
985,914
39,667
247,048
157,793
7,847
338,121
26,304
309,567
* 679
598,895
4,241
182,346
19,548
9,213
32,131
78,623
8,737
971
46,918
9,217
336,917
79,823
369,215
69,133
21,303
44,210
1,029,495
5,145
1,256
* 804
* 2,084
158,618
501,568
-342,950

64,343
2,535,299
2,425,967
109,331
2,090,180
337,822
* 18,084
* 6,744
202,509
23,963
103,816
* 17,293
14,817
166,492
19,312
56,893
0
360,528
* 92
42,443
19,821
24,552
29,265
38,813
12,346
*5
16,867
30,964
119,569
147,387
22,315
34,172
32,261
40,309
503,357
15,578
* 1,933
0
* 1,301
445,556
775,066
-329,510

12,353
191,555
185,895
5,659
214,629
15,671
* 10,608
* 77
* 4,272
* 784
* 5,048
* 5,119
2,444
13,685
* 72
1,534
*6
37,200
* 51
4,486
2,113
2,534
* 5,031
9,130
2,927
0
1,671
12,257
10,903
19,275
5,759
7,956
993
5,553
51,985
* 520
0
0
0
-22,976
35,534
-58,510

127,610
8,645,191
8,496,061
149,129
8,234,529
3,381,294
263,893
120,044
2,761,301
295,571
253,740
313,255
73,425
429,813
75,763
293,877
* 343
620,217
6,998
143,695
45,731
18,598
15,523
48,786
22,938
1,239
46,775
71,870
224,672
193,639
966,949
153,489
93,557
82,537
1,169,206
30,861
2,469
0
* 2,768
420,233
1,114,194
-693,960

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

26

22,614,483
1,317,443,005
1,295,786,783
21,656,221
1,053,705,955
434,868,323
46,735,278
31,282,105
280,662,351
56,592,372
66,776,845
47,180,627
14,767,208
85,054,914
13,381,218
35,388,217
1,423,771
41,446,328
2,897,005
18,308,063
11,108,794
7,335,934
6,481,051
8,181,013
12,827,294
1,235,347
9,439,007
34,074,935
15,463,698
31,831,493
79,148,496
18,066,560
12,740,944
24,674,687
118,421,657
11,504,196
1,476,008
69,203
1,334,666
264,508,362
325,265,465
-60,757,103

307,287
17,590,294
17,190,842
399,452
17,170,571
5,370,685
531,963
295,276
4,062,041
388,302
667,834
574,732
118,037
1,060,209
131,292
684,326
1,029
1,850,012
13,123
400,081
159,265
60,995
99,578
188,309
53,737
2,274
113,910
138,074
717,848
498,944
1,385,767
279,383
175,262
196,898
3,360,239
74,041
12,179
* 804
20,682
447,873
2,541,190
-2,093,316

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Agriculture, forestry, hunting and fishing

Net income status, item

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

All
nonfarm
industries

(1)

Total

Animal
production
(including
breeding
of cats and
dogs)

Forestry
and logging
(including
forest
nurseries,
timber tracts)

(2)

(3)

Fishing

Hunting
and
trapping

Support
activities
for
agriculture
and forestry

(4)

(5)

(6)

(7)

16,434,155
1,062,581,267
1,045,907,267
16,673,999
737,385,341
297,184,637
24,378,387
24,860,379
188,921,767
44,233,788
39,792,756
25,002,440
10,462,439
62,065,820
9,899,617
27,966,856
1,123,008
25,163,377
2,254,853
13,910,543
7,650,851
5,614,460
3,243,966
4,597,086
9,755,105
1,091,753
6,906,737
25,408,073
10,643,860
23,515,885
60,702,606
13,187,204
9,244,605
17,447,183
76,250,540
8,537,108
994,862
25,661
117,764
325,265,465

169,725
12,627,490
12,385,393
242,096
10,087,230
3,681,560
172,174
240,652
2,835,911
336,830
262,432
166,439
46,632
627,690
108,956
376,794
* 116
778,668
8,013
245,773
87,966
37,923
39,901
85,950
34,133
1,501
63,578
84,012
380,837
272,194
992,829
180,065
71,732
112,180
1,697,821
37,606
2,743
* 597
* 498
2,541,190

9,492
601,772
560,996
40,777
486,944
171,551
* 41,723
* 27,655
* 95,464
* 23,964
* 24,473
* 41,728
2,922
27,168
* 1,432
* 371
*2
59,536
* 10
11,125
45,624
4,732
* 6,526
* 2,479
3,294
*1
* 585
5,747
* 2,975
13,578
* 1,539
3,105
5,316
6,455
107,967
* 860
* 156
0
0
114,828

30,408
3,649,913
3,631,497
18,416
3,148,353
1,024,035
57,936
107,440
754,926
14,276
131,204
41,746
5,342
239,940
* 23,422
185,398
* 34
310,048
3,339
113,518
5,303
4,699
12,515
38,721
5,338
* 830
13,756
5,125
187,945
38,410
219,223
37,197
13,822
28,563
623,481
4,160
* 463
* 597
0
501,568

39,803
1,950,297
1,859,732
90,565
1,176,154
231,235
* 756
* 5,827
* 200,352
* 18,631
* 5,669
0
* 10,459
80,333
* 13,013
* 38,561
0
133,386
* 26
19,474
9,906
15,602
13,324
17,386
10,581
0
* 11,479
19,085
60,031
69,656
* 4,962
19,991
18,278
22,096
341,432
* 11,704
* 1,280
0
* 486
775,066

5,045
117,133
115,903
* 1,229
81,599
* 1,614
* 26
* 66
* 682
* 773
* 227
* 160
* 1,973
* 2,385
0
* 111
*5
* 8,381
0
* 1,571
* 746
* 1,282
0
* 4,039
* 232
0
* [4]
* 6,690
* 4,534
* 3,098
* 242
* 4,602
* 373
* 2,318
36,201
* 329
0
0
0
35,534

84,977
6,308,374
6,217,265
91,108
5,194,180
2,253,125
71,733
99,664
1,784,487
279,186
100,859
82,804
25,936
277,864
71,089
152,353
* 75
267,317
4,637
100,084
26,386
11,608
7,535
23,325
14,688
* 670
37,759
47,365
125,352
147,453
766,863
115,171
33,942
52,747
588,739
20,553
844
0
* 12
1,114,194

4,354,979
31,874,908
3,635,804
28,239,105

34,176
195,397
37,254
158,144

* 700
* 2,539
* 2,045
* 494

3,283
21,149
* 7,405
* 13,744

6,005
28,030
* 4,198
* 23,831

* 903
* 4,718
* 872
* 3,846

23,284
138,961
22,733
116,228

Footnotes at end of table.

27

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Mining

Net income status, item

Utilities

Total

Oil and
gas extraction

Coal
mining

Metal ore
mining

Nonmetallic
mineral
mining and
quarrying

Support
activities for
mining

Total

(8)

(9)

(10)

(11)

(12)

(13)

(14)

330
354,224
349,729
* 4,495
369,884
* 217,016
* 3,485
* 28,905
* 104,969
* 18,776
* 64,337
* 3,457
* 105
* 1,717
* 2,812
* 12,640
* 8,190
23,399
* 1,047
3,101
1,989
68
* 161
3,822
507
* 62
3,270
* 617
3,777
1,248
16,476
5,254
* 267
989
61,330
0
0
0
0
-15,660
12,492
-28,152

* 662
* 57,369
* 57,334
* 35
* 66,260
* 49,280
* 6,873
* 5,549
* 49,426
* 3,207
0
* 15,775
*2
* 1,108
0
* 297
*2
* 3,231
*4
* 177
* 228
*4
0
* 932
* 10
0
* 1,267
* 385
* 44
* 324
* 3,624
* 658
* 73
* 335
* 4,278
0
0
0
0
* -8,891
0
* -8,891

3,028
652,198
648,204
3,994
625,019
229,428
* 28,108
34,575
63,032
10,051
141,876
48,214
5,399
2,629
* 41
* 6,662
13,199
117,263
* 3,276
8,190
3,754
179
* 17,400
23,750
2,090
0
8,324
* 105
15,973
2,824
44,687
10,415
725
11,875
96,771
* 58
*2
0
0
27,179
97,440
-70,261

23,686
2,644,392
2,602,043
42,349
1,825,805
367,430
* 3,259
43,210
193,644
37,371
94,284
* 4,338
5,480
200,474
7,013
38,563
11,664
201,878
5,301
82,526
22,571
13,237
2,353
36,158
12,308
* 2,950
29,996
8,594
62,214
58,948
262,406
55,139
38,464
34,823
251,443
8,345
* 1,442
0
* 168
819,362
943,313
-123,951

12,650
321,981
316,927
* 5,054
292,086
111,812
* 12,752
* 1,744
* 106,129
* 1,757
* 2,144
* 12,713
* 2,546
19,630
* 17
* 17,757
* 828
24,285
* 4,514
3,143
4,623
1,637
* 292
7,714
2,102
* 14
* 734
* 6,044
5,362
884
* 29,138
2,958
3,581
6,773
30,532
* 836
* 143
0
* 1,181
30,470
61,210
-30,740

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

28

134,372
17,653,003
16,987,113
665,891
14,749,829
3,249,483
151,123
140,580
1,003,447
277,893
1,873,966
197,527
36,491
383,597
50,961
218,753
1,314,777
1,481,030
19,935
166,735
148,411
33,373
39,897
236,987
50,290
8,900
63,119
46,165
227,549
164,099
651,406
487,756
88,009
108,438
5,431,583
19,952
2,000
0
651
2,912,813
4,411,402
-1,498,589

106,666
13,944,820
13,329,803
615,017
11,862,861
2,386,330
109,398
28,340
592,377
208,489
1,573,470
125,743
25,505
177,668
41,094
160,592
1,281,721
1,135,259
10,307
72,741
119,869
19,884
19,984
172,325
35,374
5,888
20,263
36,463
145,541
100,754
324,214
416,290
48,479
60,417
5,017,761
11,550
555
0
484
2,090,823
3,358,158
-1,267,335

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Mining

Net income status, item

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

Utilities

Total

Oil and
gas extraction

Coal
mining

Metal ore
mining

Nonmetallic
mineral
mining and
quarrying

Support
activities for
mining

Total

(8)

(9)

(10)

(11)

(12)

(13)

(14)

104,824
13,896,902
13,333,346
563,556
9,490,969
2,056,151
80,135
88,959
703,862
234,988
1,039,085
90,879
33,479
336,069
29,510
179,217
1,038,515
910,113
13,954
131,348
79,914
28,029
18,922
78,826
37,208
7,138
36,625
28,222
180,782
133,995
434,226
355,330
60,798
89,181
3,152,536
18,815
1,723
0
* 91
4,411,402

80,470
11,084,680
10,556,900
527,780
7,731,992
1,675,330
57,324
26,378
540,523
196,121
918,878
63,894
23,481
143,732
23,232
132,275
1,018,229
705,780
6,828
56,854
68,689
16,662
8,584
59,902
25,939
4,285
14,644
20,734
115,384
84,489
219,930
314,545
33,792
50,534
2,880,511
11,103
446
0
* 91
3,358,158

295
86,755
85,281
* 1,474
74,263
* 3,839
0
0
* 3,839
0
0
0
*6
* 1,444
* 130
* 12,491
* 3,772
* 3,534
* 11
* 380
* 363
*3
0
* 199
* 270
*8
* 687
* 319
* 812
* 770
* 1,197
* 1,489
* 60
* 51
* 42,411
0
0
0
0
12,492

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

2,447
529,721
527,116
* 2,605
432,282
182,670
* 19,700
* 30,784
57,709
* 5,785
* 91,792
* 23,100
* 5,195
* 2,543
*1
* 2,865
6,135
70,307
* 3,066
4,768
847
* 104
* 8,574
* 9,998
1,540
0
* 3,450
* 59
10,143
* 1,707
* 30,941
6,869
* 155
9,633
70,655
* 58
*2
0
0
97,440

21,612
2,195,745
2,164,048
31,697
1,252,432
194,311
* 3,111
* 31,797
101,791
33,083
28,414
* 3,885
4,797
188,350
6,147
31,586
10,379
130,491
4,049
69,347
10,015
11,260
* 1,763
8,727
9,459
* 2,846
17,844
7,110
54,444
47,029
182,158
32,427
26,791
28,962
158,959
7,654
* 1,275
0
0
943,313

8,895
208,130
209,075
* -945
146,920
* 95,749
0
* 1,744
* 90,289
* 1,725
* 1,991
0
* 35
* 2,901
* 10
* 17,748
* 739
* 964
* 341
* 999
* 2,288
* 100
* 51
* 118
* 130
* 14
* 714
* 307
* 972
* 113
* 9,951
* 1,771
* 1,524
* 442
* 4,579
* 29
*4
0
0
61,210

19,350
195,713
22,132
173,581

15,259
76,276
16,587
59,689

* 32
* 220
* 19
* 201

0
0
0
0

* 292
* 35,171
0
* 35,171

* 3,766
* 84,047
* 5,527
* 78,520

* 5,489
* 25,396
* 4,331
* 21,065

Footnotes at end of table.

29

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Construction

Net income status, item

Manufacturing

Total

Residential
building
construction

Nonresidential
building
construction

Heavy
and civil
engineering
construction

Specialty
trade
contractors

Total

Food
manufacturing

(15)

(16)

(17)

(18)

(19)

(20)

(21)

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

30

2,821,745
206,688,428
204,893,933
1,794,496
177,584,331
88,638,224
8,747,651
15,291,341
25,808,246
29,769,186
17,325,444
8,303,644
1,191,850
15,556,031
684,047
12,780,317
29,974
6,729,355
314,650
3,967,086
1,130,200
640,697
853,592
1,200,349
1,066,803
44,896
1,342,334
1,380,449
2,118,446
8,065,637
9,202,744
2,091,781
874,035
2,454,458
13,518,065
1,350,582
138,064
10,104
86,260
29,153,787
35,436,753
-6,282,965

417,996
44,486,914
44,141,490
345,424
40,526,287
25,554,909
5,191,942
3,182,474
7,124,590
7,406,669
7,311,809
4,662,576
162,283
2,212,262
281,923
2,598,479
* 254
869,629
25,708
580,088
242,376
83,305
310,346
299,215
161,595
7,687
197,017
190,671
246,811
1,375,896
1,255,832
348,609
84,677
397,831
2,733,892
245,530
23,699
* 156
3,789
3,988,593
5,598,779
-1,610,186

78,938
10,301,953
10,154,086
147,867
9,369,712
5,842,181
246,974
779,494
1,274,570
1,625,190
2,191,303
275,349
48,132
521,074
12,831
456,972
0
314,894
14,040
176,351
58,588
34,274
42,814
71,007
54,121
2,564
69,575
66,624
72,468
228,295
380,416
93,156
70,179
73,002
629,818
30,096
6,166
0
* 8,488
939,204
1,272,691
-333,487

61,515
8,808,104
8,550,045
258,059
8,325,669
4,565,576
1,704,778
453,048
2,085,121
820,995
1,363,519
1,861,885
63,914
319,218
28,016
308,468
* 3,637
531,102
22,835
158,791
109,767
29,932
128,083
143,007
42,658
4,824
81,422
47,951
169,627
169,950
413,503
123,498
59,446
80,582
693,181
23,723
3,085
0
* 1,774
485,373
1,200,161
-714,789

2,263,296
143,091,457
142,048,312
1,043,144
119,362,662
52,675,559
1,603,958
10,876,325
15,323,965
19,916,332
6,458,813
1,503,834
917,521
12,503,477
361,278
9,416,399
26,082
5,013,730
252,067
3,051,856
719,469
493,187
372,349
687,121
808,429
29,820
994,320
1,075,204
1,629,539
6,291,496
7,152,993
1,526,518
659,733
1,903,043
9,461,174
1,051,233
105,114
9,948
72,209
23,740,617
27,365,122
-3,624,504

340,237
28,109,966
27,858,338
251,627
25,443,814
13,524,573
1,770,942
1,378,684
8,322,231
2,116,057
1,722,394
1,785,735
294,799
1,056,203
130,305
372,652
186
1,313,764
100,274
357,113
182,618
61,925
125,880
219,524
230,040
18,556
179,108
851,786
344,189
808,771
2,100,981
455,053
176,162
627,410
1,734,215
133,102
22,107
* 1,770
18,488
2,694,049
4,295,424
-1,601,375

35,793
4,156,833
4,082,228
74,604
4,108,784
2,576,576
418,183
72,001
1,990,421
235,369
326,188
465,587
71,632
112,810
17,456
17,572
* 62
119,905
10,459
33,008
29,563
6,419
26,228
39,425
21,068
1,239
25,258
103,183
67,635
106,298
283,940
71,816
24,962
92,097
238,136
* 2,632
* 1,218
* 130
* 1,472
50,186
291,498
-241,312

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Construction

Net income status, item

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

Manufacturing

Total

Residential
building
construction

Nonresidential
building
construction

Heavy
and civil
engineering
construction

Specialty
trade
contractors

Total

Food
manufacturing

(15)

(16)

(17)

(18)

(19)

(20)

(21)

2,304,865
172,740,182
171,309,443
1,430,739
137,309,040
67,705,684
3,470,720
12,622,244
18,864,892
24,115,257
11,983,714
3,351,143
912,428
12,555,778
486,324
10,871,386
29,755
4,935,849
230,025
3,133,598
784,145
517,919
422,181
785,144
821,189
39,817
983,196
1,071,357
1,529,793
6,647,762
7,088,594
1,589,495
676,101
1,924,938
10,100,933
1,111,082
105,754
* 7,345
15,917
35,436,753

332,398
33,758,359
33,533,250
225,109
28,165,248
17,190,527
1,911,278
2,570,037
4,405,536
5,574,352
4,392,112
1,662,787
110,609
1,745,235
170,221
2,110,080
* 64
640,154
15,448
443,030
176,985
67,172
106,482
166,845
114,061
6,753
139,708
151,414
149,035
1,100,725
917,033
248,581
59,427
304,195
1,756,616
215,384
20,975
* 156
* 300
5,598,779

67,760
8,452,764
8,322,408
130,355
7,180,073
4,391,256
137,926
615,875
857,585
1,229,842
1,703,749
153,721
41,852
443,244
7,241
399,338
0
213,542
11,089
127,135
36,731
31,939
22,814
41,546
42,543
2,473
45,670
59,950
56,528
199,420
322,035
71,606
60,509
61,135
455,683
28,554
6,107
0
* 8,373
1,272,691

45,525
5,788,181
5,618,485
169,696
4,587,466
2,286,028
552,666
306,704
656,230
589,897
809,113
628,582
51,382
241,058
14,717
197,096
* 3,625
357,054
6,596
115,960
48,707
23,517
25,453
72,343
31,024
4,708
47,615
32,697
113,254
133,943
233,399
66,036
43,233
53,112
364,079
17,870
2,019
0
* 114
1,200,161

1,859,182
124,740,879
123,835,300
905,578
97,376,253
43,837,873
868,850
9,129,628
12,945,541
16,721,166
5,078,740
906,052
708,584
10,126,241
294,144
8,164,873
26,067
3,725,099
196,892
2,447,472
521,722
395,290
267,431
504,410
633,561
25,883
750,202
827,296
1,210,976
5,213,674
5,616,127
1,203,271
512,932
1,506,496
7,524,556
849,275
76,654
* 7,189
7,130
27,365,122

208,296
22,108,550
21,929,531
179,019
17,814,931
10,159,548
1,117,805
960,717
6,180,475
1,635,710
1,265,713
1,000,873
163,196
665,098
93,153
246,560
* 71
727,356
68,916
258,906
95,121
41,007
49,026
118,275
144,426
13,746
120,550
534,201
232,151
547,152
1,451,325
334,966
105,176
401,017
1,116,884
82,480
10,547
* 797
* 64
4,295,424

20,469
2,926,311
2,887,484
38,827
2,634,812
1,872,942
212,802
30,144
1,538,716
124,913
194,279
227,912
20,091
58,285
9,272
11,718
0
44,160
7,999
17,565
13,378
3,193
7,977
10,769
11,318
1,121
22,147
43,290
35,225
58,959
181,981
54,421
7,829
39,564
91,709
* 492
0
* 130
* 64
291,498

467,419
3,434,948
357,727
3,077,221

60,599
484,207
59,462
424,745

9,723
102,686
* 6,239
96,446

4,904
42,869
* 2,961
39,908

392,194
2,805,186
289,065
2,516,121

47,428
299,395
44,622
254,773

8,689
66,556
* 9,407
57,149

Footnotes at end of table.

31

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued

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

Manufacturing—continued

Net income status, item

Textile
and textile
product mills

Apparel

Leather
and allied
products

Wood
products

Paper
products

Printing
and related
support
activities

Petroleum
and coal
products

(22)

(23)

(24)

(25)

(26)

(27)

(28)

5,026
342,315
341,071
* 1,244
355,623
216,386
* 9,708
* 72,808
* 70,669
* 46,072
* 26,371
* 9,242
* 5,048
9,961
* 86
* 289
0
27,512
* 700
8,384
1,516
336
* 898
* 4,459
1,662
* 78
* 1,513
* 9,729
4,215
6,658
* 7,442
10,455
* 841
10,718
21,495
* 2,775
* 731
0
* [4]
-13,308
33,604
-46,912

19,905
875,515
872,644
* 2,871
815,316
347,348
67,720
* 70,133
208,164
38,603
43,146
80,420
7,683
31,341
* 3,900
18,454
0
24,311
* 1,165
11,906
7,710
1,876
* 38
4,292
10,336
* 48
7,911
66,222
8,022
34,009
88,895
15,696
3,454
25,798
74,259
16,017
* 3,222
0
* 3,804
60,430
120,580
-60,150

* 3,783
* 61,881
* 54,054
* 7,827
* 71,067
* 42,482
* 38,924
* 6,134
* 23,427
* 11,404
* 597
* 38,005
* 2,051
* 8,721
* 539
0
0
* 1,007
0
* 477
* 378
* 1,870
*6
* 710
* 683
0
0
0
* 859
* 1,068
* 3,786
* 131
* 1,401
* 1,613
* 3,161
* 125
0
0
0
* -9,186
* 16,942
* -26,128

32,965
2,332,029
2,314,915
17,114
2,173,480
1,183,084
140,145
116,568
644,242
336,004
94,646
148,521
14,770
76,016
14,923
14,628
* 26
115,993
6,449
30,834
14,091
1,174
13,202
14,445
11,272
* 1,079
15,203
50,554
66,079
60,754
198,355
38,956
8,563
54,397
150,323
16,378
* 2,925
0
* 1,687
160,722
276,806
-116,084

* 709
* 28,050
* 25,849
* 2,201
* 35,873
* 10,291
0
0
* 10,291
0
0
0
* 2,257
* 2,527
0
* 3,434
0
* 28
0
* 318
*2
* 156
0
0
* 164
0
* 372
0
*5
* 947
* 2,720
* 36
* 888
* 182
* 11,548
0
0
0
0
* -7,824
* 2,020
* -9,844

36,181
2,566,657
2,549,730
16,928
2,255,655
1,050,860
32,799
70,779
603,608
181,640
191,382
29,347
41,270
116,691
12,346
32,324
0
128,373
6,502
32,450
11,511
6,266
* 14,512
23,604
43,701
* 724
11,244
129,911
26,887
60,954
208,448
38,816
15,272
82,164
149,322
10,874
* 1,517
* 27
* 1,401
312,791
437,018
-124,227

468
* 99,206
* 98,660
* 546
93,290
* 85,584
*7
* 435
* 79,026
0
* 6,803
* 687
* 101
* 65
* 861
* 60
* 26
* 1,410
*3
* 499
* 66
* 58
* 55
* 253
* 63
* 16
0
* 64
* 144
* 16
* 854
* 103
* 238
* 65
* 2,637
0
0
0
0
5,916
* 7,200
* -1,284

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

32

Sole Proprietorship Returns, 2008
Statistics of Income Bulletin | Summer 2010

Table 2. Nonfarm Sole Proprietorships: Income Statements, by Industrial Sectors, Tax Year
2008—Continued
[All figures are estimates based on samples—money amounts are in thousands of dollars]
Manufacturing—continued

Net income status, item

BUSINESSES WITH NET INCOME
Number of returns [1]
Business receipts, total [1]
Income from sales and operations [1]
Other business income
Business deductions, total [1,2]
Cost of sales and operations, total
Inventory, beginning of year
Cost of labor
Purchases
Materials and supplies
Other costs
Inventory, end of year
Advertising expenses
Car and truck expenses
Commissions
Contract labor
Depletion
Depre

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Abc68aaa9e88c56af. Public record. Not legal advice.