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...

AgFeed agrees to pay $18 million to settle SEC accounting fraud caseMichael Rapoport of the Wall Street Journal reported on Monday that AgFeed Industries Inc. has agreed to pay $18 million to settle US Securities and...
Hertz and Icahn make peaceThere won’t be any nasty, protracted proxy battle between Hertz Global Holdings and activist investor Carl Icahn. The rental car chain agreed last Thursday to give Icahn – who has...
Following other recent high-profile hacking events, investigators discovered yesterday that hackers broke into the draft work paper files of several famous CPA firms. Revealing images of the scantily clad documents have been...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.