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« Jobs Data Begins to Catch Up to Household Survey | Main | Nobility and Faith » April 3, 2004LLC Data Project Update # 11Add Ohio to the growing list of states where the formation of limited liability companies is setting records - indicating strength in the small business/entrepreneurial sector of the states economy that may be overlooked by the federal government's monthly jobs-growth survey of large employers. LLC formation set a record in fiscal year or calendar year 2003 in 23 of 26 states I've surveyed so far. LLC formation is setting records across the country, evidence of a booming small business and solo entrepreneur sector of the economy. The federal government's monthly Employer Survey focuses on large corporations, while the companion Household Survey is more likely to pick up new jobs created by small business and entrepreneurs. For more than a year, the Household Survey has shown strong job growth, while the Employer Survey shows a stagnant jobs picture. LLCs are a favorite form of business structure for small businesses and entrepreneurs who are starting businesses. According to a spreadsheet of data emailed to me by the Ohio Secretary of State's office, there were 29,474 domestic LLCs formed in Ohio in 2003, up more than 17 percent over the previous record of 25,067 in 2002. It's also 210 percent more LLCs than entrepreneurs formed in Ohio in 1999, the year the Clinton-era economic boom hit its peak. I have now collected data on LLC formation in 26 states. LLC formation reached a new record high in fiscal year or calendar year 2003 in 23 of them: Alaska, Arizona, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Minnesota, New Hampshire, New York, Nebraska, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington and Wisconsin. Utah set a record in 2002 and then declined slightly in 2003. Nevada and Kentucky set records set in 2002 and may have in 2003 - I have not been able to gather complete data for those states for 2003. I continue to seek data from the remaining 25 states. For stats from other states, see my Economy & Business archives and then read the various LLC-related posts. Posted in Economy & Business
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I've been trying to get the Michigan data since you started with Tennessee. So far, I think I've clicked on every link on the Michigan website, and nothing. I've also called the two bureaucracies who deal with setting up LLCs and with collecting business data. The first tells me they do not keep aggregate data, just info on the individual LLPs (as they're called after being set up). They claim they don't even have a total. (No one seemed interested in putting them in a spreadsheet and looking to see what the last line number was.) They insist the second group has the numbers and both gave me the phone number and transferred me. Thus far, in four tries, I've been put on automated hold four times for about 5 minutes each time. At the end of that time, the phone has rung either once or twice and then disconnected. Other calls to numbers listed for the bureaucracy have never been answered no matter how long I have let it ring. Maybe I've located the source of the problem. Posted by: JorgXMcKie at April 4, 2004 06:49 PMJorg - I found Michigan's data. Unfortunately, it is only through the end of FY 2001-02. But it shows record growth to that point. It's rather funny that no one in Michigan government could find it for you - and said it didn't exist. Posted by: Bill Hobbs at April 4, 2004 08:01 PMBill, over on the right of that page is a link that gives the month by month. They have Oct 2003 through Jan 2004, looking like a projected 39,000 plus for the year. Posted by: Chuck Simmins at April 5, 2004 07:01 PMHere in Florida, recent changes (Oct. '03) in the Workers Compensation Insurance Laws affecting the construction industry are forcing sole proprietors and officers of corporations to prove a minimum 10% ownership in a corporation in order to receive an exemption from the requirements for WC insurance for the small business owner. This is causing a surge in the formation of LLCs and, to a lesser degree, S Corporations. Therefore, as far as the construction industry component of new business/job creation in Florida, the number of LLCs being formed may be as much a reflection of changes of entity type as of new business start-ups. -Gary Posted by: Gary at April 7, 2004 08:03 PMPost a comment
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