This report provides data for New York State small businesses in tax year 1996. The section on methodology describes the process in detail. A business is considered small if it has fewer than 100 employees in New York State.
Small businesses organize themselves in many different forms.
The most prevalent organizational form for small business is the sole proprietorship. Sole proprietors may or may not employ additional workers. They file tax returns under the personal income tax for both federal and New York State purposes using federal Schedule C to compute their business profit or loss. Many farms are also organized as a type of sole proprietorship. The farm owner may hire workers and pay them wages subject to withholding tax.