Colorado business filings dip but stay above 2024

DENVER — Colorado saw a year-over-year increase in new business filings in the third quarter, though the total dropped from the previous quarter amid signs of economic moderation.

New entity filings rose 7.2% from a year earlier to 44,618, according to a report released Monday by the University of Colorado Boulder and the Colorado Secretary of State‘s Office. The total was 12.9% lower than in the second quarter, reflecting a typical seasonal slowdown that followed unusually strong spring activity.

The Quarterly Business and Economic Indicators report is produced by the Leeds Business Research Division at CU Boulder in partnership with the Secretary of State’s Office.

Renewals also declined, with 178,290 filings recorded in the third quarter, down 1.8% year over year and 6.2% from the prior quarter. Historically, third-quarter renewals fluctuate, increasing about 60% of the time over the past two decades and decreasing 40% of the time. This quarter’s drop was steeper than average.

Businesses in good standing rose 3.7% from September 2024 and 0.7% from the second quarter, while delinquencies increased 7.2% year over year and 2.7% quarter to quarter.

Colorado’s job growth continues at a modest pace, mirroring national trends. Employment rose 0.6% in August, ranking the state 34th nationally. Month to month, Colorado ranked 21st. The state added 18,300 jobs over the year, led by gains in information, leisure and hospitality, and education and health services.

“Even with increased economic uncertainty, Colorado’s economy remains resilient,” Secretary of State Jena Griswold said. “I will continue to do everything possible to ensure that our state’s economy is strong.”

Colorado’s labor force participation rate stood at 67.4% in August, seventh-highest in the nation and well above the U.S. average of 62.3%. The state’s labor force growth was flat from a year earlier, and unemployment fell to 4.2%, ranking 35th nationally.

“The filings data are consistent with the other state-level data that we track,” said Richard Wobbekind, senior economist at the Leeds School of Business. “It supports our current slow but positive growth scenario.”

Inflation in Colorado remained below national levels. The Consumer Price Index showed national inflation at 2.7% in July and 2.9% in August, while the Denver area recorded 2.1% in July, according to the Bureau of Labor Statistics.

Colorado’s real gross domestic product grew at an annualized rate of 3.5% from the second quarter, ranking 26th nationally. Year over year, GDP rose 1.8%, placing the state 22nd. Personal income increased 5% over the year, ranking Colorado 29th.

“The quarterly filings data show somewhat mixed results,” said Brian Lewandowski, executive director of the Business Research Division. “On one hand, we measured an increase in new filing activity and a normalization of LLC dissolutions, but on the other hand, the state recorded a decrease in business renewals.”

Monthly updates on Colorado’s key economic indicators are available through the Colorado Business and Economic Indicator Dashboard, a joint project of the Secretary of State’s Office and CU Boulder’s Business Research Division.