Cover, Nevada Secretary of State Quarterly Economic & Business Activity Report

June 2014

New Business Entity Filings Up in the Second Quarter of 2014

New Entity Filings [Leading Indicator]

  • New entity filings edged up slightly in the second quarter of 2014 when compared to the prior period (Q1 2014), rising from 15,233 to 15,313. However, compared to a year ago (Q2 2013), new filings were up a more robust 5.1 percent. Corporations and Limited Liability Companies (“LLCs”), which account for the largest share of new entity filings, reported quarter-to-quarter gains of less than one percent during the period. Compared to a year ago, Corporations and LLCs were up 0.5 percent and 7.7 percent, respectively.

  • Domestic (Nevada) filings also remained relatively flat during the second quarter, rising from 14,257 to 14,313. Compared to a year ago, domestic filings increased 5.1 percent, primarily due to a 7.7-percent gain in LLC filings.

  • Foreign (non-Nevada) filings reported a quarterly gain of 2.5 percent, rising to 1,000. The latest gain was primarily due to a 7.9-percent gain in Corporation filings. Compared to a year ago, foreign filings increased 4.9 percent, due to an 8.3-percent gain in LLCs.


Total List Filings [Lagging Indicator]
  • Initial, annual and amended lists totaled 77,964 in the second quarter of 2014. The latest period represents a 2.5-percent decline compared to the prior quarter. Corporations and LLCs reported declines in list filings during the quarter, falling 3.7 percent and 1.7 percent, respectively. Despite quarterly declines, list filings increased 3.1 percent compared to a year ago. Although Corporation filings fell 0.6 percent, LLCs reported a gain of 7.0 percent.

  • In the past 12 months, there have been 303,560 list filings, which represents a gain of 4.7 percent when compared to the prior 12-month period. During the period, Corporations reported a gain of 1.0 percent, rising to 130,472. Meanwhile, LLC filings totaled 159,625, which represents a gain of 8.9 percent.

  • By the end of the second quarter, there were 300,253 entities in good standing, which is up 4.6 percent from the prior year. Entities in good standing have reported year-over-year gains for 18 consecutive months.


Analyst's Assessment
“After witnessing an annual decline of 3.2 percent in the fourth quarter of 2013, new entity filings have reported year-over-year gains of roughly 5.0 percent in the first two quarters of the year. New entity filings are now 17.1-percent higher than the 13,081 reported in the third quarter of 2012. However, despite recent gains, they remain down 29.7 percent compared to the pre-recession high of 21,794 filings.

While growth in new entity filings has been fluctuating, employment in the state has reported year-over-year gains for 42 consecutive months. By the end of the second quarter, Nevada added 41,400 jobs when compared to the prior year. The professional and business services sector reported the most significant annual growth with the addition of 11,300 jobs. Leisure and hospitality followed, adding 10,200 jobs in the past year. Other sectors reporting significant annual growth in June include construction (+6,900 jobs), retail trade (+6,400 jobs) and education and health services (+5,500 jobs).

In addition to positive employment growth, Nevada private average weekly wages have now witnessed year-over-year gains for 7 consecutive months. In June, average weekly wages reached $703.66, which represents an increase of 2.9 percent compared to a year ago. Notably, the leisure and hospitality sector reported a 9.3-percent gain in average weekly wages, rising to $471.23. Meanwhile, the professional and business services sector reported a 5.0-percent increase to $857.39. Although employees continue to work fewer hours, the recent gains in employment and wages are welcome in a state where the unemployment rate remains 1.5-percentage points above the national average.“

View Report »

March 2014

Business Entity Filings Start 2014 on a Positive Note

New Entity Filings [Leading Indicator]

  • After reporting declines in the final quarter of 2013, new entity filings started 2014 on a positive note. A total of 15,233 new entity filings were reported in the first quarter of the year, which represents a substantial 14.8-percent increase compared to the prior quarter (Q4 2013). Compared to a year ago (Q1 2013), new filings increased 5.1 percent. Limited Liability Companies (“LLCs”), which account for the largest share of new filings, reported a 16.6-percent quarterly increase and a 7.3-percent annual increase.

  • Domestic (Nevada) filings totaled 14,257 in the latest period, which represents a 16.0-percent increase from last quarter. The growth is primarily attributable to a 17.6-percent increase in LLC filings and a 13.7-percent increase in Corporation filings. Domestic filings increased 5.0 percent from a year ago, due to a 7.5-percent increase in LLC filings.

  • Foreign (non-Nevada) filings remained relatively flat at 976 during the period. However, compared to a year ago, foreign filings increased 6.3 percent. Corporation filings increased 12.6 percent, while LLC filings were up 3.7 percent.


Total List Filings [Lagging Indicator]
  • Initial, annual and amended lists increased 7.4 percent in the first quarter of 2014, rising to 79,968. Although Limited Partnership (“LP”) filings reported a 10.4-percent decline, LLCs were up 12.2 percent and Corporations were up 3.7 percent. Compared to a year ago, list filings increased 6.5 percent due to a 10.3-percent increase in LLC filings and a 2.9-percent increase in Corporation filings.

  • In the past 12 months, there have been 301,207 list filings, which is up 4.8 percent from the prior 12-month period. In the latest period, LLC filings are up 8.8 percent and Corporation filings are up 1.2 percent. LP filings have declined 4.7 percent in the past year.

  • By the end of the first quarter, there were 298,258 entities considered to be in “good standing,” which is up 3.9 percent from a year ago. Entities in good standing have reported annual increases for 15 consecutive quarters.


Analyst's Assessment
“In March 2014, Nevada’s economy gained 47,000 jobs when compared to a year ago, representing an increase of 4.1 percent. Excluding the natural resources and mining sector, each of the employment sectors reported annual gains compared to last year. The leisure and hospitality sector reported the most substantial growth during the period, rising by 12,600 jobs. Two additional sectors witnessed gains of more than 10,000 jobs when compared to a year ago. The professional and business services sector reported a gain of 10,700 jobs, while the trade, transportation and utilities sector was up by 10,100 jobs due to growth in the retail trade sector (+7,000 jobs). Other sectors reporting growth included construction (+5,500 jobs), education and health services (+3,800 jobs), government (+1,900 jobs) and manufacturing (+1,400 jobs).

The state’s unemployment rate stood at 8.7 percent in March 2014, which is down 1.4 percentage points from the prior year. The latest decline in unemployment rate appears to be attributable to more people finding work rather than frustrated job-seekers leaving the workforce. In February and March of this year, the state’s labor force reported an annual increase for the first time since 2011, rising 0.1 percent in February and 0.9 percent in March.

Not only are more people working, but they are earning more as well. In March, the state’s private sector reported average weekly wages of $696.47, which is up 3.2 percent from last year. Despite gains in employment and earnings, Nevada’s employees are not necessarily working more. Private average weekly hours worked reported no change in March 2014 when compared to the same month a year ago. However, the relatively flat performance in recent months is a welcome sign compared to the annual declines reported in every month of 2013.“

View Report »

December 2013

New Business Entity Filings Decline in the Fourth Quarter of 2013

New Entity Filings [Leading Indicator]

  • New entity filings totaled 13,268 in the fourth quarter of 2013. Compared to the prior quarter (Q3 2013), new entity filings declined 4.1 percent, while they are down 3.2 percent from a year ago (Q4 2012). Limited Liability Companies (“LLCs”), which account for two-thirds of new filings, reported a 6.6-percent quarterly decline and a 1.2-percent annual decline.

  • Domestic (Nevada) filings reported a 4.1-percent decline when compared to the prior quarter, falling to 12,290, with LLCs down 7.2 percent. Compared to a year ago, domestic filings are down 3.9 percent. Limited Partnerships (“LPs”) fell 38.9 percent, Corporations were down 6.3 percent and LLCs fell 1.8 percent from the fourth quarter of 2012.

  • Foreign (Non-Nevada) filings totaled 978 in the fourth quarter of 2013, down 3.2 percent from the prior quarter. However, compared to the prior year, foreign filings increased 7.6 percent, primarily due to a 10.3-percent increase in LLC filings and a 4.7-percent increase in Corporation filings.


Total List Filings [Lagging Indicator]
  • Initial, annual and amended lists reported quarterly and annual increases in the latest period. During the fourth quarter, there were 74,445 list filings, up 4.6 percent from prior quarter. The latest quarterly growth is attributable to an 11.4-percent increase in LP filings, a 6.7-percent increase in Corporation filings and a 2.3-percent increase in LLC filings. Compared to a year ago, list filings increased 3.8 percent, with Corporation filings up 0.5 percent and LLC filings up 7.8 percent.

  • In 2013, there were 296,356 list filings, up 3.1 percent from the prior 12-month period. LLC filings reported an increase of 7.3 percent. However, gains were offset by a 0.5-percent decline in Corporation filings and a 5.8-percent decline in LP filings.

  • At the end of 2013, there were 291,721 entities considered to be in “good standing,” which represents an increase of 3.5 percent when compared to the end of 2012.



Analyst's Assessment
“ By the end of 2013, employment in Nevada reported annual growth for the third year straight, rising by 42,600 jobs (+3.7 percent). The leisure and hospitality sector reported the most substantial growth, up by 12,000 jobs (+3.8 percent). The trade, transportation and utilities sector followed with the addition of 9,800 jobs, primarily due to growth in the retail trade sector (+6,600 jobs). Other sectors reporting significant growth during the period included professional and business services (+8,300 jobs), education and health services (+5,400 jobs), construction (+5,200 jobs), manufacturing (+1,400 jobs) and financial activities (+1,000 jobs).

Job growth in the state is continuing to drive down the unemployment rate, which was 8.7 percent by the end of the year. The rate is now down 2.0 percentage points from a year ago and has fallen 5.4 percentage points since the high of 14.1 percent reached in January 2011. Despite recent employment growth, new entity filings have been reporting mixed results. After witnessing two consecutive quarters of annual increases, new business filings fell 3.2 percent in the fourth quarter of 2013, suggesting the latest trends in employment are more attributable to the expansion of existing businesses rather than the creation of new ones.“

View Report »

September 2013

Business Entity Filings Report Quarterly Declines in the Third Quarter of 2013

New Entity Filings [Leading Indicator]


  • New entity filings totaled 13,830 in the third quarter of 2013, down 5.1 percent compared to the prior quarter (Q2 2013). Despite the quarterly decline, new entity filings increased 5.7 percent compared to the same quarter last year (Q3 2012). In the past 12 months, there have been 56,596 new entity filings, up 1.0 percent from the prior 12-month period.

  • Domestic (Nevada) filings fell 5.8 percent from last quarter to 12,820. However, compared to a year ago, domestic filings increased 5.8 percent. Limited Liability Companies ("LLCs") reported the only annual increase, rising 13.7 percent to 8,999. Meanwhile, Limited Partnerships ("LPs") fell 16.3 percent, while Corporations reported a decline of 8.5 percent.

  • Foreign (non-Nevada) entity filings reported a 6.0-percent increase compared to the prior quarter, rising to 1,010. Compared to a year ago, foreign entity filings increased 4.3 percent, due to annual increases reported by LPs (+71.4 percent); Corporations (+5.3 percent); and LLCs (+1.9 percent).



Total List Filings [Lagging Indicator]

  • Initial, annual and amended lists totaled 71,183 in the third quarter, down 5.9 percent from the prior quarter and up 5.6 percent from the prior year. LLCs, which represent more than half of all list filings, reported the greatest annual increase during the quarter, rising 10.6 percent to 37,142. Corporations, which account for another 43.2 percent of list filings, followed with an annual increase of 1.2 percent.

  • For the past 12 months, list filings totaled 293,639, up 3.4 percent from the prior 12-month period. LLCs reported the only increase, rising 7.8 percent to 150,144. LPs fell 5.5 percent, while Corporations reported relatively no change.

  • As of September 2013, approximately 288,984 entities were considered to be in "good standing," representing a 3.0-percent increase compared to the same month last year. The number of entities in good standing has now reported annual increases for nine consecutive months.



Analyst's Assessment
"In September, Nevada's economy added 16,600 jobs (+1.4 percent) when compared to the same month a year ago. The leisure and hospitality sector reported the most substantial annual job growth (+6,800 jobs), driven by an increase in the food services and drinking places sector (+7,900 jobs). The trade, transportation and utilities sector followed, adding 6,500 jobs, primarily due to increases in retail trade (+4,200 jobs) and wholesale trade (+2,800 jobs). Other sectors reporting gains included government (+3,400 jobs) and education and health services (+4,900 jobs). However, these gains were partially offset by the professional and business services sector, which reported a dramatic decline of 5,800 jobs after three consecutive months of relatively stable performances.

Job growth continues to help drive down unemployment in the Silver State. In September, the unemployment rate fell to 9.2 percent, which is 1.2 percentage points lower than the rate of 10.4 percent reported a year ago. In addition, initial jobless claims for the past 12 months fell 5.8 percent compared to the prior 12-month period to 206,600. With new entity filings up 5.7 percent year-over-year and positive annual employment growth, the two business activity indicators appear to be rowing in a similar direction."

View Report »

To highlight the implications of business entity filings with the Nevada Secretary of State, Applied Analysis was asked to analyze movements in entity filings and employment in Nevada and report the results on a recurring basis.

View Report »