New Biz Fillings are Up
Friday, January 27, 2012
According to a report issued by the Secretary of State's office, "Rhode Island's entrepreneurs may be getting more optimistic about the economy’s recovery." The office tracks yearly corporate filings. and the steady decline in the number of new business starts over the past few years ended in 2011.
For the first time since 2007, the number of new filings actually increased year-over-year.
But, overall, the growth was modest, 6,846 in 2011 compared to 6,778 in 2010. As a basis for comparison, there were 7,837 start-ups in 2007.
“Based on our work with start-ups all year long, we were pretty sure 2011 would be more hopeful. But we were surprised to see such an improvement,” said Ralph Mollis, Secretary of State.
And there have been three straight years of growth in any corporate business classification for the first time since 2007. The number of newly formed limited liability companies (LLCs) rose to 4,202 in 2011, up 4.8 percent compared to 2010 and 5.5 percent since the streak began in 2009.
LLCs are a type of business entity that has the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership. For several years, it has been growing in popularity compared to the for-profit corporate structure.
There are signs that the economic shake-out is not over, though. In 2011, 6,627 corporate entities disappeared in 2011, about 7 percent more than 2010 when 6,183 companies shut their doors. Still, Rhode Island did better than in 2008, when a record 7,071 companies went out of existence.
“The state’s economic troubles have taken a terrible toll on Rhode Islanders. We can only hope the worst is behind us,” said Mollis.
The secretary of state's office is often the first place Rhode Islanders stop when considering starting a business. The First Stop Business Information Center provides custom packages that make it easier to apply for financing, obtain permits and make contacts at every level government.
Secretary of State Mollis is committed to making it easier for Rhode Islanders to vote, making it easier to do business in Rhode Island and making government more open and accessible. For more information about the programs and services the Secretary of State offers Rhode Islanders, visit sos.ri.gov.
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