However, because these companies are so numerous, and are indicative of the vitality of the entrepreneurial spirit in New York, it is important to provide some description of their activity. There are a number of explanations for an entity with extremely low gross receipts. Such companies could be start-up companies that were created during the year. In their first year of operation such companies could have very low gross receipts, either because of their creation late in the year, or because of the nature of initial operations. Schedule C filers may also engage in part-time business operations to supplement their wage income or their family income.
Many individuals conduct business operations from their homes on a part-time basis.
Frequently these operations involve the sale of nationally known and advertised retail products. Other schedule C activity is generated by individuals whose business is more in the nature of a hobby. Distribution of Entity Types for Each Employment Class Two of the more interesting findings to emerge from the analysis of the data concern the choice of the type of entity and the level of employment or business activity. Businesses in the various sectors of the State's economy tended to chose to organize themselves to conduct business in different ways. The study shows that the most likely choice of an entity type was strongly influenced by the type of economic activity in which the business was engaged.