Self-employment method
Legal Services
283,944 people filed as a nonemployer business under this industry code in 2022 — no payroll, no employees, just them. These are gross receipts reported to the IRS, before any expense is taken out.
Median GROSS RECEIPTS for the year — money in, before rent, materials, fuel, insurance or tax. This is not take-home pay.
Share who grossed under $10,000 for the whole year — before expenses.
The middle half, in gross receipts. A quarter of filers took less than the lower figure.
Source: US Census Bureau, Nonemployer Statistics 2022 · view
How often it does not work out
Of the 283,944 people who filed under this code in 2022, 28.40% grossed under $10,000 for the entire year — before a single expense was deducted.
That is a floor, not an estimate. Census publishes GROSS RECEIPTS, not net income. Everyone inside that share earned less than the figure suggests once rent, materials, mileage, insurance and self-employment tax came out — and filers who grossed well above the threshold may still have netted nothing. The true share of people who earn nothing meaningful from this is higher than the number above, never lower.
Denominator: establishments_total = 283,944 · US Census Bureau, Nonemployer Statistics 2022 · view
Every filer, by what they grossed
The full receipts distribution as Census publishes it. The median above is interpolated inside whichever band contains the 50th percentile, so this table is what that figure is derived from.
| Gross receipts for the year | Filers | Share |
|---|---|---|
| Under $5,000 | 47,020 | 16.6% |
| $5,000 to $9,999 | 33,627 | 11.8% |
| $10,000 to $24,999 | 52,837 | 18.6% |
| $25,000 to $49,999 | 43,166 | 15.2% |
| $50,000 to $99,999 | 43,362 | 15.3% |
| $100,000 to $249,999 | 43,061 | 15.2% |
| $250,000 to $499,999 | 14,280 | 5.0% |
| $500,000 to $999,999 | 5,027 | 1.8% |
| $1,000,000 to $2,499,999 | 1,564 | 0.6% |
Who this suits
At a $29,916 median in gross receipts, the typical person under this code is running a real but part-time operation. Full-time equivalence would require roughly triple this before costs.
With 283,944 filers, Legal Services is a substantial informal workforce. Enough people do it that local pricing is set by the field rather than by you.
22.5% of filers grossed $100,000 or more, which is high for this dataset. A substantial share of this field is running an actual business rather than an occasional one.
Professional services are the classic solo business: low capital, high skill, and a ceiling set by how many hours you can sell. It suits people who can market as competently as they deliver.
There is no training requirement to file under this code — which is precisely why so many people appear in the bottom bands. Entry being free is not the same as the work being viable.
Who should not do this
The top quarter of Legal Services earns 10.7x the bottom quarter — under $8,564 against over $91,866, a spread of $83,302. Distributions this stretched are usually two different jobs sharing one label, and any average across them means little.
The bottom quarter of Legal Services earns under $8,564 — $41,456 below the $50,020 a typical American job pays. Entering at the bottom and waiting is a live risk here, not a theoretical one, and some people never leave that quarter.
Do not start this if you dislike selling. Skill is not the constraint in this sector — client acquisition is, and it never stops being.
28.4% of the 283,944 Legal Services filings in 2022 reported under $10,000 in gross receipts for the year — 80,640 people who took in less than a part-time wage before costs.
Read that as a floor, not an estimate. Census publishes gross receipts, not net income, so everyone inside that share earned less than $10,000 suggests once costs came out — and filers who grossed well above $10,000 may still have netted nothing.
What the spread tells you
A ratio of 10.7x between the quarters is the signature of a winner-take-most distribution. $29,916 is a real number about a real population, but nobody entering Legal Services should plan around it.
In cash terms the middle half of Legal Services runs $8,564 to $91,866 — $83,302 a year between the 25th and 75th percentiles, against a midpoint of $29,916.
Getting to $91,866, the 75th percentile, is worth $61,950 a year more than the $29,916 midpoint and $83,302 more than the $8,564 a quarter of Legal Services settle for.
Per hour at a standard full-time year that is $14.38 at the midpoint for Legal Services, $4.11 at the 25th percentile and $44.16 at the 75th, against $24.04 for the typical American job.
Counted straight off the return: 47,020 filers grossed under $5,000, 33,627 took $5,000 to $9,999, 52,837 took $10,000 to $24,999, 63,932 cleared $100,000 and 20,871 cleared $250,000.
What these figures are, and what they are not
Every figure above is GROSS RECEIPTS, before expenses — money that arrived before rent, materials, fuel, insurance and self-employment tax. The $29,916 midpoint for Legal Services is not take-home pay and is not comparable to a $29,916 salary.
With no unpaid-hours or cost data for Legal Services, the hourly figure is $29,916 over a 2,080-hour year — a unit conversion, not an adjustment.
How this is calculated · Self-employment failure rates · Look up something else