A record number of businesses formed in Kansas in 2013, according to the Annual Business Formation Report, released by the Secretary of State’s Office last week.
The report shows Kansas business filing trends over the last 10 years.
In 2013, the domestic number of new businesses filing with the state was 15,469, the highest annual total on record. The number compares with 15,008 new filings in 2012, and 12,646 in 2011. The numbers are not a precise indication of all business activity in Kansas, because they do not include sole proprietorships.
Art Hall, the executive director of the Center for Applied Economics at the University of Kansas Business School, said the number of business entities formed in 2013 set an all-time record.
Hall said economic indicators suggest that the U.S. economy may grow faster in 2014 than it did in 2014.
“Kansas growth tends to closely follow U.S. growth,” Hall said. “The surge in Kansas business filings is yet another indicator that suggests more robust Kansas economic growth in 2014.”
Hall also concluded that the comparisons before and after tax law changes on Jan. 1, 2013 are stark. The changes reduced to zero the income tax rate for certain small business entities. It also reduced the level of personal income tax rates.
“In 2012, Kansas lawmakers enacted one of the most aggressive pro-growth tax reforms in the nation,” Hall said in a press release. “The much more rapid rate of business formation in 2012 and 2013 offers an early indication that the law may be having its intended affect. The positive impact is apparent in virtually every Kansas county.”
Secretary of State Kris Kobach said the record year in business formations is significant.
“This is not a one-year outlier. It is a meaningful trend. Kansas is clearly becoming a great place to start a business. Entrepreneurship is alive and well in the Sunflower State,” he said.