Pass-Through Businesses Account For Majority Of Private Sector Employment And Net Business Income

From Tax Foundation, "Most of the Private Sector Workforce is Employed by Pass-through Businesses" by Kyle Pomerleau:

In the past three decades, the importance of “pass-through” businesses has grown substantially. The combined net income of sole proprietors, LLCs, Partnerships, and S corporations has increased fivefold and now accounts for more than 50 percent of all business income. C corporations now earn less than half of all business income.

Another way to look at how pass-through businesses have increased in importance is their role as employers. Not only do they account for more than 50 percent of net business income in the United States, they account for more than 50 percent of employment too.

According to 2012 census data, 54.8 percent of all business employment (employment excluding non-profits and governments) is pass-through business employment. This represents approximately 66.6 million workers and sole proprietors. C corporations comprise the remaining 45 percent, or 54.9 million workers.

Source: Tax Foundation