• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Big Ideas for Small Business logo

Barbara Weltman

Big Ideas for Small Business, Inc.

Whitepaper download

Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."

This field is hidden when viewing the form
Get the:

  • Home
  • About Us
  • Big Ideas For Your Business
    • Idea Of The Day ®
    • SMB Legal
    • SMB Taxes
    • SMB Financial
    • Small Business
    • Newsletter Archive
  • Services
  • Books
  • Blog
  • Multimedia
    • Videos
    • Radio Shows/Podcasts
  • Be a Guest Blogger

Sole Proprietorships: Number and Revenue Continue to Increase

June 11, 2020 / By Barbara Weltman

Chart and Graph Showing IncreaseEach year the IRS releases statistics on various types of business entities, and most recently it released the latest statistics on sole proprietorships. These stats are derived from Schedule C of Form 1040 for 2017 returns in contrast to the number of such filers and their revenue with 2016 returns. The data also reflect entries on Schedule C-EZ, which is a type of return for sole proprietors that is no longer in use.

Sole proprietorships include:

Sole proprietorships include independent contractors, freelancers, other gig economy workers, or other self-employed individuals who are not required to file any other type of income tax return to report their business income expenses. They also include limited liability companies (LLCs) owned by one individual who does not choose to file a corporate return. In fact, such LLCs now account for 29.3% of all Schedule C filers (up from just 2.3% in 2001). Results from 2015 returns were discussed in an earlier blog.

Key statistics include:

  • There were about 26.4 million non-farm sole proprietors in 2017, compared with 25.5 million in 2016. This is a 3.5% increase.
  • Profits in 2017 rose to $346.2 billion, a 3.5% increase over 2017. But total profits as a percentage of business receipts were 22.6%, down slightly from 23.1% in 2016.

The statistics examine results across industries, including construction, retail and wholesale trade, finance, real estate, professional services, health care, and the arts. The transportation and warehousing sector had the largest percentage increase in the number of returns among all sectors, increasing 18.6% for 2017. This follows an increase of 22.6% in 2016. The growth in ride-sharing businesses contributed to these large increases.

As far as profits go, the professional, scientific, and technical services sector had the largest profits of any sector, at $82.8 billion (23.9% of total sole proprietorship profits), followed by the health care and social assistance sector, at $47.3 billion (13.7% of total profits. Overall sole proprietorship business receipts increased 7.7% The largest industrial sector, based on business receipts, was the construction sector, accounting for 17.3% of total business receipts.

The statistics show the breakdown of deductions claimed by sole proprietorships in various industries. On average, the largest categories of business deductions were salary and wages (12.9%) and car and truck expenses (12.8%). Of the 26.4 million sole proprietorships, nearly 10.7 million claimed a home office deduction.

Final thought

Will the aftermath of the pandemic see an increase or decrease in sole proprietorships? No one knows for sure. Sadly, many sole proprietors have likely shut their doors despite some opportunities for government help and others that struggle for a while may ultimately be forced to close. But because sole proprietorships are the easiest type of business entity to get started in, I suspect there will be a surge in new sole proprietors in the months to come. Individuals who are out of a job as well as those seeking to create supplemental income with a sideline activity may represent the new wave of sole proprietorships. Let’s hope for a quick recovery!

Tags business entities IRS key statistics sole proprietorships statistics on sole proprietorships

Primary Sidebar

Categories

  • General Business (506)
  • Guest Blog (115)
  • Homepage (28)
  • Small Business (1,008)
  • SMB Financial (330)
  • SMB Legal (67)
  • SMB Taxes (327)

Barbara’s Recent Posts

  • How to Choose the Right Promotional Product Distributor July 11, 2025
  • Is Christmas in July for Your Small Business? July 10, 2025
  • How to Streamline Recruitment and Selection to Enhance Hiring Results July 9, 2025
  • One Big Beautiful Bill: Checklist of Tax Changes for Small Businesses July 8, 2025
  • What the U.S. Supreme Court Told Small Businesses in This Term: Part 1 July 3, 2025
  • Mid-Year Business Planning for 2025 July 1, 2025
  • 10 Ideas for Coping with Cash Flow Challenges June 26, 2025
  • 5 Insurance Traps to Avoid June 24, 2025
  • Creating a Feng Shui Office Layout for Your Business June 20, 2025
  • Scaling Your Business by Optimizing Social Media Marketing June 19, 2025
  • The Timeless Value of Business Cards in a Digital World June 18, 2025
  • What Does the Latest IRS Data Book Tell Us? June 17, 2025
Awarded Top 100 Small Business Blog medal (link will open in a new window or tab)
Marquis Who's Who 2023 Badge
Top Small Business Blogs (Link will open in a new window or tab.)
8 Financial blogs small business Owners Need to Read. Invoice home.  (link will open in a new window or tab)
Best Small Business Blog, Expertido.org
Top 50 Small Business Blogs 2018
Best Small Business Blogs
BizHumm Top 100 Business Blog Award to Barbara Weltman
FitsSmallBusiness.com: Award for Best Small Business Blog 2017 (link will open in a new window or tab)
FitsSmallBusiness.com: Award for Best Small Business Blog 2016 (link will open in a new window or tab)

Footer

Big Ideas for Small Business logo

Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

Contact Us

[email protected]

(772) 492-9593

gacor maxwin situs slot thailand terpercaya situs slot gacor situs gacor akun pro thailand slot bandar togel terpercaya

Latest Tweets

bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 10

5 Best Apps to Help You Delegate Tasks Easily - LifeHack https://bit.ly/4ktlMs8 #smallbusiness #delegate #workplace

Reply on Twitter 1943438117886726437 Retweet on Twitter 1943438117886726437 Like on Twitter 1943438117886726437 1 Twitter 1943438117886726437
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 10

Motivation vs Discipline: Why One Always Beats the Other (And It's Not What You Think) - LifeHack https://bit.ly/4eCTSIQ #productivity #smallbusiness #motivation

Reply on Twitter 1943384967964229673 Retweet on Twitter 1943384967964229673 Like on Twitter 1943384967964229673 Twitter 1943384967964229673
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
July 10

Use These 11 Guidelines to Decide When to Bend the Rules for Employees https://bit.ly/3GEPOeH #workplace #smallbusiness

Reply on Twitter 1943360134333276317 Retweet on Twitter 1943360134333276317 Like on Twitter 1943360134333276317 Twitter 1943360134333276317
Load More

Copyright © 2008–2025 Big Ideas for Small Business, Inc  |  Designed by Hudson Fusion

  • Privacy Policy
  • Sitemap