Incorporations Surge Even in Unpredictable Economy

Economic indicators are showing that a sluggish economy and an uncertain world are not stopping Americans from starting their own businesses in record numbers.

Over the last year, self-employment has increased by 400,000, according to a Labor Department survey, reported by the Wall Street Journal.

In the state of Delaware, an incorporation center, there has been a big increase in start-up businesses. In the last fiscal year that ended June 30, there was a 14 percent increase in incorporation fees collected from those filing the paperwork to start their own businesses and the number continues to climb.

"This is a pretty good bellwether for what is happening around the nation," Mark Zandi, chief economist with Economy.com, told the Journal. "You can use Delaware as a window into whether the entrepreneurial spirit is being revived or not."

California is also seeing an upswing in incorporations. "Our data show that new businesses incorporations are running very high," Michael Bernick, director of California's Employment Development Department, told the Journal, adding that even during the burst of the tech bubble, the number stayed steady and has increased in 2003.

The Commerce Department released a report last Wednesday showing that proprietor's income, excluding the farm sector, was up 8.6 percent over last year, which is striking when compared to the 2.3 percent increase in corporate wages and salaries, the Journal reported. The Commerce report also stated that incomes had increased 0.4 percent between September and October. In fact, proprietor’s income has bested corporate income in 13 of the last 14 months.

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
Credit Suisse says pension assets at risk unless court delays sentencingJohn Letzing of the Wall Street Journal reported on Wednesday that Credit Suisse Group AG says its management of billions of dollars in assets for...
The prospect of International Financial Reporting Standards (IFRS) being fully adopted in the United States in the near future are growing less likely, as the Financial Accounting Standards Board (FASB) and the International...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.