As the 2001 legislative session drew to a close in May of this year, much attention focused on proposed changes affecting the filing of documents in the commercial recordings division of the Nevada Secretary of State’s office. Of course, a great deal of that interest was directed at fee changes and the possible impact of higher fees on businesses, and upon decisions whether to organize in the state of Nevada.
More than three months have passed since those changes took effect, and since that time, our country has been the victim of a horrendous terrorist attack. However, the business activity witnessed by my office during this unprecedented time has left me confident that neither these legislative measures nor the effects of terrorism will hinder our state’s business-friendly reputation or its ability to attract business.
Senate Bill 51 and Senate Bill 577 brought changes to existing filing requirements, changes in certain filing dates and time periods, and fee changes. Other legislative modifications affecting commercial recording filings allow my office to accept new documents, such as Articles of Conversion and Articles of Domestication, and provide for new services to be offered by the secretary of state. One of the new services available to Nevada’s business community – and one in which I am extremely pleased – is a two-hour expedited service in which commercial recording documents are processed and an acknowledgement faxed or e-mailed to the filer within two hours of the filing’s receipt. High quality services such as this contribute considerably to Nevada’s pro-business environment.
In the days prior to the new legislation’s effective date of August 1, business filings in the secretary of state’s office increased dramatically. In fact, the impending changes prompted single-day records of 1,081 telephone calls to my Carson City customer service division and more than 124,000 hits at the Secretary of State’s Web site. Over 6,200 businesses filed in Nevada during the month of July, and of those, 4,180 were new corporations. Those figures amount to a 40 percent increase in new business filings over the prior month and a 77 percent increase over the previous July. Single-month filing activity of this scale is simply unparalleled in Nevada history.
As the legislative changes took effect August 1, a drop in new business filings was certainly expected. However, the terrorist attacks on our nation on September 11 could never have been predicted. A general downturn in our nation’s economy coupled by falling rates of travel and tourism are destined to leave their mark on our state’s economy. Conceivably, that impact would be felt in the secretary of state’s office as a slump in new business filings. Yet, as evidenced by September’s filing activity, Nevada continues to entice new business, even during the most trying times.
The month of September was marked by an increasing number of new business filings in nearly all organizational categories, including corporations. Though September 2001 stands unique in comparison to those of past years, some business filings, such as limited liability companies, saw a greater number of filings this September than September of last year. A modest 5 percent growth over August may pale compared to the dramatic growth my office witnessed this July, but it is evidence of our state’s continued appeal to business.
As reported here in Nevada Business Journal, Nevada was recently ranked first among the 50 states for its policy climate for small business and entrepreneurship. Studying major government-imposed and government-related costs that affect business and owners, the Small Business Survival Committee determined that Nevada offers the most favorable climate for entrepreneurship. Likewise, the Battelle Institute has recently commended the Silver State for its great success in advancing and supporting technology businesses and other startups. As secretary of state, I know that this is not merely high praise but a truthful assessment of our state’s business character.
Nearly 55,000 new business entities filed in the Nevada Secretary of State’s office last year alone, and that is a figure that has increased every year I have served in this office. In my seven years as secretary of state, our nation and our economy have never experienced challenges like those that exist today. Nevertheless, by virtue of its inviting business climate, Nevada is prepared and certain to remain a great state in which to do business.
