MAY 21, 2020 — The Census Bureau today released the 2018 Nonemployer Statistics. This annual series provides subnational economic data for businesses that have no paid employees and are subject to federal income tax. The data consist of the number of businesses and total receipts by industry. Statistics on businesses include over 450 industries at varying levels of geography, including national, state, county, and metropolitan and combined statistical areas. The data are also published by Legal Form of Organization (LFO), and by receipts size class.
The majority of all business establishments in the United States are nonemployer. A nonemployer business is defined as one that has no paid employees, has annual business receipts of $1,000 or more, and is subject to federal income taxes. Nonemployer statistics come from business income tax records that the Internal Revenue Service (IRS) provides to the Census Bureau.
The data are subject to nonsampling error, such as errors of self-classification by industry on tax forms, as well as errors of nonreporting and coverage. Receipt totals are slightly modified using noise infusion data protection methods to protect confidentiality. All dollar values are expressed in current dollars, i.e., they are not adjusted for price changes.
For more information about the methodology and data limitations, visit <www.census.gov/programs-surveys/nonemployer-statistics/technical-documentation/methodology.html>.