An increase in business fillings in Colorado offers encouragement the state economy is well-positioned to recover from the coronavirus pandemic. Recovery still depends, though, on the effects of the pandemic.
“While the Colorado economy is not back to where it was before this recession, the indicators point to a faster recovery than other states might see. How long it takes to fully recovery will likely depend on the status of the pandemic,” said Richard Wobbekind, senior economist and faculty director of the Leeds School of Business at the University of Colorado at Boulder.
According to a report compiled by the Leeds Business Research Division based on statistics from the Colorado Secretary of State’s office, initial filings of new companies, corporations, nonprofit organizations and other entities rose during the third quarter compared to the same span last year.
Jena Griswold, Colorado secretary of state, said the numbers provide reason for optimism. “This report demonstrates that the foundation of Colorado’s economy is strong, but we must remain vigilant with respect to the pandemic to ensure it continues to grow.”
A total of 38,678 new entity filings were recorded during the third quarter of this year. That’s an increase of 24.3 percent over the same quarter last year that bucks what’s historically a seasonal decline in the third quarter. Filings offer a leading indicator of business growth and jobs.
New filings for domestic corporations increased 56.4 percent on a year-over-year basis, while new filings for limited liability companies increased 25.5 percent.
A total of 150,405 renewals for existing entities were recorded during the third quarter of this year. That’s a 5.9 percent increase over the third quarter of last year. Filings for trademarks and trade names also increased.
Still, dissolution filings also increased during the third quarter — up 9.6 percent from a year ago to 8,457. Businesses often file dissolution paperwork well after ending operation.
The overall number of companies, corporations, nonprofits and other entities in operation in Colorado continues to increase. For the third quarter, there were 780,388 entities in good standing. That’s a 6 percent gain over the same quarter last year.