THE SECRETARY’S MINUTE

South Dakota

Secretary of State Jason M. Gant

ECONOMIC REPORT

It is my privilege to provide the public with the second quarter Economic Report for 2013.

As reported in the last quarterly Economic Report, corporate filings continue to remain strong in South Dakota. Limited Liability Corporations once again take the lead with approximately 68% of the filings in the second quarter of 2013. Total business filings for the second quarter of 2013 are up 9.2% or 156 over the same time period in 2012.

It has been an unusual year weather wise, with some areas of the state experiencing snow fall and ninety degree heat within a two-week period. Despite the weather anomalies, the USDA reports 70% of corn and 67% of soybeans as being in “good or excellent” condition in the state of South Dakota. The taxable sales in South Dakota are up by 3% this quarter over the same time period in 2013 (as reported by the SD the Department of Revenue). With these positive signs, I am optimistic that we will continue to experience growth in the upcoming months.

Photo courtesy of South Dakota Department of Tourism

2nd Quarter 2013 Issue Secretary’s Minute..………..….……..1 Economic Indicators………..…………2

Limited Liabilities Companies Continue to Lead Filings…..………. 3

The Secretary’s Spotlight……………4

3,159 3,573

3,895

Q1 & Q2 2011 Q1 & Q2 2012 Q1 & Q2 2013

Trademark Filings

New Entity Filings

Economic Indicators At-A-Glance

vs. prior quarter

vs. prior year

Corp. Annual Reports

vs. prior

quarter vs. prior

year

SD Unemployment

vs. prior

quarter vs. prior

year

SD Labor Force

vs. prior quarter

vs. prior year

New Corporation Filings Continue to Increase

The upward trend in new filings continues in Fiscal Year 2013, with a total of 3,895 new filings since January 1, 2013.

NonFarm Wage and Salary Employment

vs. prior

year vs. prior

year vs. prior quarter

vs. prior quarter

Labor Statistics provided by the South Dakota Department of Labor and Regulation

Limited Liability Companies Formation of Choice

LLC’s continue to lead the way as the formation of choice for new entities, accounting for 4,925 of the 7,430 new filings in the past 12 months.

With over 290 more filings for the June 2013 Quarter than the June 2011 Quarter, LLC formations are continually increasing each year.

1275

1072

985

LLC Filings

June 2011

June 2012

June 2013

Three Year Comparisons – LLC’s

All Other Filings 34% LLC's

66%

Filings by Category - June 2013

Often when starting a business, people are confused and afraid of all the complicated filings that go along with starting a business.

• Should the business be an LLC, Corporation, or Partnership? • How do I get a trademark? • What will I have to do for the IRS? • How do I register the name? • Do I need a license or permit? We have provided useful links on our website to the South Dakota Department of Revenue and Regulation, the South Dakota Small Business Development Center, the IRS, and others to assist you in getting your business going.

Generally, the first step is deciding what type of entity your business will be. For many small businesses the entity type is a sole proprietorship with a “fictitious name”. But, there is no substitute for spending the $200 or so that it would cost you to visit with a CPA or attorney that can help advise you on what type of entity to form. Whether you decide to become an LLC, as roughly 70% of new filings are, a corporation, or another type of entity, the South Dakota Secretary of State’s office provides the necessary forms to formally organize. The filing fee to register a new business is $150.00 and is filed with the South Dakota Secretary of State’s office.

You’ll also want to consider if you’ll need a trademark. A trademark protects the name of a business or product, and should not to be confused with a patent which protects an invention or a copyright which protects an original artistic or literary work. We have made the trademark application, renewal, and assignment applications easy to understand so that you can complete them in a short amount of time. The fee for filing a trademark is $125.00.

Although the Secretary of State’s office can’t provide legal advice, we can help answer questions you may have. Don’t let the filing stop you from starting your own business. Once done, you will be surprised at how easy it really is. Good luck!!

To File or Not to File?