Business Applications Continue to Rise in 2021

Following an unusual trend that started last year, a bright spot is on the economic horizon, says Northwest Registered Agent LLC

Spokane, Washington, UNITED STATES

SPOKANE, Wash., March 11, 2021 (GLOBE NEWSWIRE) -- Business applications are rising in 2021, a surprise if it weren’t for an even stranger reality: 2020 saw more business applications filed than any year on record, up 24 percent from 2019. The U.S. Census Bureau recently released data on this trend—between December 2020 and January 2021, business applications increased by 42.6 percent.

Nearly half of those applications came from likely-employer businesses. According to the Economic Innovation Group, these are the businesses “most likely to lead to lasting job growth.” The uptick is in stark contrast to previous recessions. According to the EIG, there were 230,000 fewer likely-employer business applications in 2008 than in 2007.

“Most recessions involve individuals being strapped for cash and financial markets being reluctant to provide loans, diminishing the prospects of starting a new business,” write Jimmy O’Donnell et al. in an EIG report. “Since [the COVID-19] economic contraction was in response to a public health crisis … economic fundamentals remain strong for many industries and households[.]”

The pandemic has closed thousands of established businesses, but for entrepreneurs a changed world provides a chance to pivot and adapt. Whether this trend is temporary or lasting—and, ultimately, whether it results in increased employment or not—it helps keep the economy moving today.

Some existing businesses, like Northwest Registered Agent, are fueling this trend by making it cheaper than ever to start a business. Northwest recently launched Monthly VIP Service, becoming the only company to cover clients’ state filing fees up front. By turning high filing fees into low monthly payments, Northwest makes starting a business easier for entrepreneurs with less cash on hand.

“We believe this service will lead to an even greater escalation of new small business formations,” says Drake Forester, Northwest’s chief legal strategy officer. “Ultimately, we hope this results in bolstered local economies across the country.”

Of course, more business formations might not mean more successful businesses. Time will tell how current business application trends truly impact the economy and the workforce. For now, it’s an encouraging, hopeful shift.

About Northwest Registered Agent
Northwest Registered Agent provides registered agent and corporate filing service to customers in all 50 states. With 350 employees nationwide, Northwest takes pride in its commitment to Privacy by Default®, which ensures that client data is never sold—ever. That’s doing business the right way.

Media Contact
Drake Forester, Chief Legal Strategy Officer
Northwest Registered Agent LLC
(509) 381-3777