The data is out: LLCs up, corporations down

The International Association of Commercial Administrators collects state-by-state filings, including those of new business associations.  I've found this data very valuable over the years in showing the competition among business forms. For some work using this data, see my article with Kobayashi, Choice of Form and Network Externalities.

The latest IACA data is out, reflecting formations through 2005.  Here's where you can find this and other reports.

The latest report shows that filings for LLCs are up in 2005 from the prior year in almost every state, while they are down for corporations in most states.  Here's charts showing four years' filings for 35 states reporting for all four years -- up for LLCs in all but three of these states (Minnesota, Nebraska and Rhode Island) and down in 21 states.

The following pictures show the 35 state figures for LLCs and corporations over the four years ending 2005.  I realize the display could be clearer, but hopefully this conveys the idea:  rising for LLCs, dropping or static for corporations.

By the way -- that state at the top in both pictures is not California, Delaware or NY -- it's Florida.

The corporate form is hanging on -- it's what most practitioners know.  But it's looking less and less like the future of business associations.

Comments

[L. Newton]

Thank you for this information. With all the commercial slant on LLC information out there, it is good to see an objective site.