In the land of opportunity, many look to capitalize on their passions and aptitudes by starting a business, which often involves starting an LLC.
But how many Americans are interested in starting this type of business during these tough financial times?
This study used data from Google Adwords, the US Census Bureau, Legal Templates records, and keyword.io to illustrate business search and application trends nationwide. Read on to learn more about people’s interest in registering LLCs and how you can get yours started today.
Turning Thoughts Into Actions
In the first part of our study, we examined the connection between the number of times people searched for “how to start a business” and the number of LLCs registered in recent years.
Did Americans follow through on their business inspirations?
While hurdles like high costs and state restrictions cause some people to end their LLC journey during the research phase, there are many benefits to registering your own business, including limited personal liability and tax advantages. Luckily, there are plenty of online resources to pull from, and Americans have increasingly taken advantage of them over the past few years.
From 2019 to 2020, searches for “how to start a business” increased by 22%. Many aspiring business owners took action on their ideas due to their research: the number of submitted business applications increased by 17% during the same three-year period.
Utility-based business applications grew the most from 2020 to 2021, increasing by 48%. Delaware saw the greatest difference in applications submitted: a 42% increase from 2020 to 2021. The number of business applications submitted in Wyoming (34%), South Carolina (34%), New Mexico (32%), and Vermont (30%) also trended upward during this time.
The number of LLCs registered has also risen steadily over the past five years. Only 1,051 were registered in 2017, and we estimate that Americans will register 19,872 new LLCs by the end of 2022.
The number of registrations spiked the most between 2019 and 2020, doubling from 7,472 to 14,970. The pandemic was likely a significant factor, as many laid off or forced to stay home used the opportunity to start their own businesses.
Locating Future Entrepreneurs
Now that we know how many people have been researching how to start a business, it’s time to consider where most were located.
Let’s see which parts of the US have been the most entrepreneurial lately.
Delaware was the state doing the most online searches about starting a business. The state was brimming with hopeful business owners last year, generating the greatest increase in business applications in 2021.
But it’s no coincidence that people have formed so many businesses in Delaware — the state is known for having no sales tax and being one of the most business-friendly places in the world. Over two-thirds of Fortune 500 companies, including many LLCs, are incorporated there.
Meanwhile, the four states with the most “how to start a business” searches per 100,000 residents were Rhode Island, North Dakota, Alaska, and Vermont. We found the least number of these searches in Michigan.
Although these states have one of the cheapest LLC filing fees in the country and affordable renewal fees, its citizens were the least keen on learning how to start a business.
Seeking Guidance
Research is essential before starting a business, and you need to ask the right questions when searching online. Let’s see what answers have people been looking for in their business-forming quests.
None of the top search queries increased more than “small business ideas 2022” — a phrase with a search uptick of 14,400% over the last 12 months. Consulting, dropshipping, freelance content writing, pet sitting, and online tutoring are promising starting points for 2022. A similar phrase, “new business ideas 2022,” also increased by 4,233% within the last year.
Many other upward-trending searches in the past year revolved around economic concerns. The searches “How do you profit in a recession” and “How do you survive a recession in 2022” increased by 3,700% and 600%, respectively.
Fortunately, many money-saving actions — like establishing an emergency fund, minimizing high-interest debt, keeping your credit accounts active, and investing in recession-proof industries — can help you through an economic downturn.
Choosing an Industry for Your LLC
There are many different avenues you can take when starting a business. Look at the most searched industries by year and state to see trends.
The top five business types by search volume have been consistent since 2018.
Real estate, jewelry, tutoring, and contracting have remained in the lead, whereas restaurants and graphic design have taken turns making a list. People in Wyoming and Vermont have done the most online searches about starting real estate and jewelry businesses.
With the rise of cryptocurrencies and the ever-important presence of social media, online inquiries about starting a crypto or influencer-based business have also risen sharply.
From 2020 to 2021, searches for starting a crypto business grew 203%, while influencer hopefuls created a search volume increase of 102%.
There was also a slightly lower but impressive 90% jump in 2020 for the search “how to start a jewelry business.”
Whatever industry you choose, a well-written business plan is essential for starting and managing a business. A traditional plan is usually about 30 to 40 pages long and has eight sections. The goal is to cover all important topics to establish your reputation and acquire financing.
Unfinished Business?
Starting a business is no simple task, which is likely why online searches about how to do it have increased. The number of registered LLCs has also risen sharply over the last few years, indicating that many have turned their business dreams into reality.
LLC registration policies and laws vary by state, but opportunities are teeming nationwide. So, what are you waiting for? Your business might be the next to disrupt an entire industry.
Methodology
Search trend data was pulled from Google Adwords in August 2022 (8/10/2022). Data regarding the number of business applications submitted was gathered from the US Census Bureau, and data regarding the number of LLCs formed yearly was acquired from Legal Templates’ internal data. All data are from the past five years. 2022 data is predictive based on data from January to June of 2022. Trend data were collected as of August 10, 2022.
About Legal Templates
Legal Templates offer users easy-to-use and efficient document builders, making legal documentation filings a breeze.
Fair Use Statement
If you’d like to share our LLC-related findings with your audience, we encourage you to do so! We only ask that your purposes are noncommercial and that you provide a link to this page so the contributors can earn credit for their work.
