McGeehan Law
McGeehan Pascale, PLC
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3554 Chain Bridge Road, Suite 205
Fairfax, VA 22030
​703.273.5303
 
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McGeehan Law

Nonemployer firms

8/29/2018

 
​The most common type of small business may not be what you think. When people talk about small businesses, the thing that usually comes to mind is an establishment with a couple of employees. However, the most common type of small business, by far, is one with zero paid employees. In government statistics, this kind of business is called a “nonemployer,” and they outnumber employer businesses by four to one.
The Office of Advocacy has just published a fact sheet that answers key questions about nonemployers. “A Look at Nonemployer Businesses” describes how nonemployers fit into the overall economy, where they get startup capital, the industries in which they work, and their ownership demographics. The fact sheet is based on the latest information from the U.S. Census Bureau.
Nonemployer firms are sometimes overlooked because they account for only 3 percent of total U.S. business revenue. However, the latest figures show that four in five businesses are nonemployers. As the economy changes, nonemployer firms are playing an increasingly large role—the number of nonemployers increased 58 percent from 1997 to 2015. 

    Author

    John P. McGeehan is the managing member of McGeehan Pascale, PLC. His practice focuses on business structures, especially new, emerging, small businesses and not for profit organizations, all business transactions, employment law, real estate, commercial leasing, estate planning and litigation before administrative agencies and all courts.

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3554 Chain Bridge Road, Suite 205
Fairfax, VA 22030

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