On holidays, secretary of state remains open for business
Not a creature stirred inside the Colorado secretary of state’s office on Christmas Day. And yet, numerous companies filed business forms. Hundreds of them — at a rate of nearly one form every other minute.
Susan Nagl, owner of Skinny Jeans Health Coaching in Denver, joined 616 others last Friday — Dec. 25 — to update a business registration, form a limited liability company, reserve a trade name or file one of more than 100 business forms online.
Nagl, who advises clients on diet and health, said the chore of getting her company’s statements of conversion and articles of organization filedwas on the to- do list
her accountant sent before the holidays.
But she didn’t miss out on Christmas festivities, she said. She happened to be in Adelaide, Australia, which is 17 hours ahead of Denver. She filed Dec. 26.
“I sent an e- mail to my accountant in Colorado and told her I had finishedmy todo list, and itwasmyChristmas present to her,” Nagl said in an e- mail, ending with a happy- face emoticon.
Resolutions
As the year winds down, Colorado companies are wrapping up one of the busiest years for new business filings. The state is about 3 percent above last year’s rate— and last year included a four- month fee holiday that dropped newbusiness filing fees to $ 1, from$ 50. Ahodgepodge of reasons for holiday filing include deadlines, taxes andNew Year’s resolutions. Many just finally found the extra time they needed.
“Iwas on vacation,” said Brian Laws, cofounder of EndTheZone, which filed as an LLC on New Year’s Day last year.
“This is a side thing I’m doing with a friend of mine,” said Laws, who hopes his Thornton startup will create the state’s premier annual flag football tournament ( the next one is in Denver on June 25). “It’s a labor of love and a hobby I’m trying to turn into a business.”
But Laws, an IT professional by day, also timed the filing for tax purposes.
“I wanted the tax season to start at the top of the year,” he recalled. “I just registered online, which was pretty gosh darn easy.”
MarkHolzemer, president of Slammers Baseball in Englewood, also filed onNew Year’s Day 2015.
He had a pressing reason: “Our annual reportwas past due, andwewanted to get it taken care of,” saidHolzemer, who filed on behalf of the Michael S. Jacobs Foundation Inc. The nonprofit, created to honor of a friendwho died in 2004, provides college scholarships to baseball players and golfers.
Filers, however, were probably more likeNicoleCaldwell, the GreenMountain Falls owner of MissMarie Paperie, a custom wedding card shop. She filed then didn’t do anything for months. At least she got her Etsy store running, unlike many other filers with no obvious online presence.
“Jan. 1 seemed like a good starting date. However, itwasn’t tillAug. 15 that I actually launched a shop,” Caldwell said. “And it’s still very much a work in progress.”
The secretary of state’s office accepts business forms online 24/ 7. A typical day brings in about 1,000 filings. A heavy day could see 7,000.
Christmas Day filings numbered about 600 for the past two years. OnNewYear’s Day 2015, the office received 1,295 filings — nearly one every minute. Most are simply periodic reports to update company information.
Online business filings have been on the rise in Colorado. In September, new business filings alone reached 102,724 in the 12 months prior. That’s up 3.4 percent from the prior year and up 28 percent from 2012.
Themove onlinemore than a decade ago has really made it easier for small businesses to get started, said AbramSloss, executive director of theDenverMetro Small Business Development Center.
“I remember filingmy first company 10 years ago, and most of those forms were online already,” Sloss said. “And one of the great things is it doesn’t cost a lot, compared to other states. High fees could be a barrier ( for small businesses) elsewhere.”
According to BizFilings, a national businessfiling portal, Colorado is tied for the second- lowest fee— at $ 50— to form an LLC.
Slosswasn’t surprised to hear that Jan. 1 tends to be a busy day for filings. It’s a timewhen people aremakingNewYear’s resolutions and preparing for a new year, he said.
“We always hear, ‘ I’ve alwayswanted to run my own company.’ And a lot of them file business registrations before they do anything else,” Sloss said.
The chamber’s busiest month for seminars aimed at startups is January, he added. During the year, seminars attract about 30 to 35 people. In January, the numbers double.
“From a small- business standpoint, when you file, you formalize your business and get your business in order,” he said. “And anytime I incur a cost, whether it’s a class at the ( Chamber’s Small Business Development Center) or materials you need, like business cards, I’m able to tie it back to a company that exists and is not a figment of my imagination.”
Online boom
It’s difficult to pinpoint the rate of growth of Colorado’s online business filings, said Alberta Bennett, operations manager with the department’s business and licensing division.
The first formswent online in July 2004, and more were added every year. Today, nearly 90 percent of business forms are online, and in many cases a business can’t choose to file on paper, she said.
“One thing we laugh about now is back in the days when our office was in The Denver Post building. Especially on Dec. 31, we’d have lines outside our door and into the hallwayswaiting for service— and that was only to the business desk,” reminiscedBennett, who hasworked in the secretary’s office for nearly 30 years. “We don’t have those types of lines any longer. We only have one door to the office.
Her department also has about 20 percent fewer employees, nownumbering 37.
“If you’re an entity and want to stay in good standing, you have to file a report,” Bennett said, addressing the reason behind most of thosewho filed on Christmas. But on Christmas? “Maybe people were trying to get away from the family,” she replied.