Louisiana among states with recent increase in business formation

Louisiana among states with recent increase in business formation

On Behalf of | Jul 8, 2020 | Business Formation & Planning |

Across the nation, the current circumstances have impacted businesses and people in myriad ways. For many, starting a business might have been pushed to the backburner until the situation is stabilized. However, in Louisiana and other states, a growing number of people are moving forward with starting businesses. Waiting for the ideal time to begin a new business often leads to never starting it at all. Those who have an idea for a product or service should understand crucial aspects of the endeavor. Legal advice can be beneficial for business formation.

According to statistics, the current quarter may have an economic contraction of up to 35%. Even with that worrisome projection, businesses are still getting off the ground. The Internal Revenue Service saw a radical reduction in applications for Employer Identification Numbers in March. They remained on the downswing until Southern states – including Louisiana – saw an uptick.

The numbers are positive for an improved economic landscape. There was a reduction in unemployment and a rise in retail purchasing in May. Manufacturing on the East Coast saw record-shattering increases. The numbers for business formation were not discussed as prominently, but that is also getting better. There is a perceived correlation between people starting businesses and a market recovery. Louisiana was noted as a state that was improving for the quarter, along with Georgia and Mississippi.

People thinking of starting a business need to be aware of various factors that have changed including the moving of the income tax filing deadline. Economic experts are expressing enthusiasm which may lead to more people taking that next step in starting a business even in uncertain times. Forming a business is not easy. People might gather information from sources on the internet, through word of mouth and from people who may not be fully knowledgeable. To be prepared, there are certain facts to remember such as what type of business formation to use, how to secure financing, and methods of operation. Discussing the idea and goals with a business law firm can provide information on how to proceed. Calling for a consultation can be helpful from the start.