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Sole Proprietorship Business Statistics
Sole proprietorship data tables on BizStats include only those sole proprietorships reporting net income unless otherwise noted. Especially because sole proprietorship reporting formats are supposed to classify all direct owner compensation as net income, including non-profitable sole proprietorships could distort comparisons to healthy businesses, which we believe is the benchmark objective of most readers. Excluding operations with negative net profit also reduces the impact of data attributable to business failures and other turnover.
Direct income margins among (properly reporting) sole proprietorships should convey a purer sense of owner compensation percentage than corporate reports. However, depending on the size and variation of sole proprietorships from average, other labor costs (as well as depreciation) may be folded in to develop a range of anticipated owner compensation.
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