2020-IACA-Merit-Awards-Rhode-Island-submission

2020 IACA Merit Award Submission RI Business Data Hub Contact Information Maureen Ewing, Director of Business Services RI Department of State, Office of Secretary of State Nellie M...

2020 IACA Merit Award Submission

RI Business Data Hub

Contact Information

Maureen Ewing, Director of Business Services

RI Department of State, Office of Secretary of State Nellie M Gorbea

148 W River Street, Providence, RI 02904

mewing@sos.ri.gov

(401) 222-3093

Introducing the RI Business Data Hub

In May 2019, the RI Department of State, Business Services Division launched the RI Business Data Hub,1 a collection of reports and interactive visualizations that use the vast volume of data

we collect to tell the story of the business landscape in Rhode Island

As the central business registry for all Rhode Island business entities,2 the RI Department of State, Business Services Division has been collecting, indexing, and displaying great quantities

of business data for centuries While we do offer data subscriptions for our bulk corporate data and have been diligently working to digitize our historic corporate records for easy public

consumption, a casual user searching our corporate database can only find information on one entity at a time They could not research registered entities by location or by business activity, both of which are extremely useful Prior to the launch of the RI Business Data Hub, our staff frequently received requests for information such as:

• The number of restaurants in a particular municipality;

• Trends in the largest industries doing business in Rhode Island; and

• The number of minority or women-owned businesses registered in Rhode Island;

These questions were posed both by members of the general public – those looking to conduct market research in preparation for starting a business or in an effort to advertise more

effectively – and by other state agencies interested in identifying new audiences or emerging business trends Because of the limits on the data we were collecting and how we were

collecting it, we found we were unable to answer these questions

The Idea

Since taking office in 2015, Secretary of State Nellie M Gorbea has made it her mission to transform the RI Department of State from its traditional role as a filing cabinet into a true hub of information With that goal in mind, the Business Services Division set out to evaluate the data

we collect and to determine what stories that data can tell We identified several gaps in the data points we record:

• the true nature of an entity’s business activity;

2 The RI Department of State does not collect registration information from Sole Proprietorships or General Partnerships

Increased Data Collection

Having identified the gaps in the data we were previously collecting from our registered entities,

we implemented two main policy changes in the fourth quarter of 2016 First, we began

requiring entities to report their primary business activity by indicating an appropriate NAICS code3 as part of its annual report filing Previously, our database contained only an open text field for each entity to describe its primary purpose This limitation lead to wildly different

descriptions which proved impossible to chart across different entities The NAICS code offered

a much clearer and uniform solution Because the NAICS code is typically associated with tax filings, we expected some pushback from our frequent filers and from the law community to our collection of these codes In preparation for the anticipated response, we provided ample

resources on our website and on each annual report form to clearly explain what a NAICS code

is and the purpose for which we intended to use it This extensive information campaign worked,

as we did not experience any negative feedback on the collection of this new data point

Second, we attached a voluntary survey to both digital and paper annual reports, asking the entity to provide the following information:

• whether the business owner self-identifies as a woman, veteran, disabled and/or

member of a socially and economically disadvantaged group;4

• how many full-time employees the business has; and

• the gross revenues for the business during the previous year

It is important to note that this information is both voluntary and self-reported, and we make certain this is clear to the entities receiving the survey

Data Cleanup

In the third quarter of 2018, the Business Services Division partnered with the Roger Williams University Mario J Gabelli School of Business and the Alan Hassenfeld Fellowship Program as part of a mutually beneficial data project As part of this collaboration, we benefited from the newly cleaned-up data and the University benefitted by providing real-world, applicable

experience to its students The team undertaking the project included students pursuing both undergraduate and graduate degrees in business and economics The undergraduate team conducted research and applied more accurate NAICS codes to entities who had entered

incorrect or incomplete codes and appropriately classified those few entities who had not

indicated any code at all Using the newly cleaned and more accurate data points, the graduate team combined that information with census data to analyze ten years of economic and

business trends in Rhode Island, including a comparison of our business landscape to that of our region and of the entire U.S

3 At first, we collected two-digit NAICS codes; however, after reviewing the usefulness of that data, we began

In-House Data Analytics

In the first quarter of 2019, the RI Department of State hired a full-time Senior Data Analyst to evaluate and connect our records to information from other trustworthy sources in order to tell compelling and useful data stories The Analyst’s first project was designing and publishing the

RI Business Data Hub

The Result

The RI Business Data Hub was launched on May 6, 2019 to coincide with National Small

Business Week The Hub brings together interactive data visualizations, a comprehensive Business & Economic Report spanning the years 2008-2017,5 information about how to

purchase our bulk data subscriptions, and an option to submit feedback and specific data story requests with an eye for continuous improvement

Using the cleaned-up data6 from our partnership with Roger Williams University, relevant

census data, and Microsoft Power BI, the Data Analyst designed three interactive visualizations:

• RI’s Business Landscape

o Used to track trends in entity types registered, explore business longevity, and discover common business activity in Rhode Island

• In Your City/Town

o Used to identify what types of entities are conducting business in a particular municipality, as well as location-specific employment, education, and income levels

• Survey Says…

o Using the self-reported, voluntary survey data, this tool helps users explore ownership, employment, and gross revenue data by city or town or by industry Each visualization contains several pools of data represented by a different style of diagram By making a selection from one of the available drop-down menus or clicking on a portion of a diagram, the user can drill down to details on the topic of most interest to them Our staff can also use this to answer the type of questions posed above, though the volume of these

questions has significantly decreased since the launch of the RI Business Data Hub

Our Business Services team includes a brief overview of the Hub during its regular

presentations to RI entrepreneurs and small business owners and consistently receives

extremely positive, complimentary reviews of the tool Since its launch ten months ago, we have recorded 10,232 total visits to the RI Business Data Hub, 8,909 of which were unique views

5 Produced by Roger Williams University Mario J Gabelli School of Business on behalf of the Rhode Island

Department of State

6 For the purpose of the RI Business Data Hub, the data is scrubbed of identifying information before being

translated into the visualizations

The RI Business Data Hub was designed with ample room to grow The Business Services Division continues our partnership with Roger Williams University and looks forward to finding more and better data sources to pair with our ever-improving data set While the Hub has enjoyed an excellent reception, we have several improvements in our sights These include:

• More data visualizations, including a visualization specific to non-profits to coincide with our newly developed resources for non-profits;7

• Automation of data updates; and

• Higher ratio of survey participation leading to improvement of the Survey Says…

visualization.8

Lessons Learned

Along the road to implementation, the Business Services Division learned a very important lesson: collect data in a way that is clean and easy to cross-reference It was also essential to encourage entity participation in responding to voluntary data requests

Data: Collect Early, Update Often

Having collected statutorily required business registration information for centuries, it was essential to this project that we begin collecting additional data early to ensure we had a large enough sample size to be able to discern ongoing and newly emerging trends It was important

to us to properly educate our customers prior to and during the change in our process to

minimize, as far as possible, any potential concerns We also found that it became necessary to alter the types of information we were collecting9 in order to create results that met our and our customers’ expectations This evaluation is an ongoing process, and starting data collection very early on allowed us to better analyze and refine the information we intended to collect Just as important, once we had a data story we were ready to share, was finding a way to make that story continually relevant To create the visualizations in the RI Business Data Hub, the Data Analyst invested significant time scrubbing and massaging the data available to her This worked well for the initial launch; however, that level of time investment is not sustainable and she is now seeking a way to automate the data cleaning process Doing so would not only reduce the regular workload for her, having up-to-the-minute data included in the visualizations would make them much more useful and relevant to the end user

Voluntary Survey Reporting

Because our office is not statutorily required to collect ownership, financial or employment data,

we were sure to make very clear on the survey provided to entities that their participation is

8 On average, 25% of entities filing an annual report complete the survey

9 Early on in our collection process, we moved from requiring two-digit NAICS codes to six-digit NAICS codes We

appreciated, but voluntary Since we cannot require entity participation, it is lower than we would prefer Part of our ongoing improvement to the RI Business Data Hub is taking measures to encourage better voluntary participation

Attachments

• Sample Survey for LLCs

• Rhode Island Secretary of State Business & Economic Report 10-Year Overview 2017)

(2008-WELCOME PACKET

Dear Business Owner,

As your Secretary of State, I am committed to ensuring that starting,

managing, and growing a business in Rhode Island is easier than ever

I am confident you will find our Business Services Division offers a wealth

of tools and resources to help you keep your business on track As part of

this effort, we have included the following helpful materials in this packet:

• About My Business: Business Snapshot and Annual Task List

This fillable form is an easy way to keep track of important information

about your business and reminds you of the actions you must take

annually to remain in good standing.

• About My Records: Business and Financial Documents

There are many aspects to starting a business that happen behind the

scenes This resource helps break down important legal and accounting

considerations.

• Life of a Rhode Island Business

This infographic lays out the steps you should take to keep your business

in compliance with the RI Department of State, the IRS, the RI Division of

Taxation, and your local municipality.

• About Employment: Employer Basics

This chart describes the agencies you should contact when you’re ready

to hire employees and the requirements you must fulfill for each.

• Contact List

This helpful list provides the contact information for state agencies and

other business-friendly groups for easy future reference.

In addition to these resources, our RI Business Website ( sos.ri.gov/

divisions/business-services ) is available 24/7 to help you navigate

managing and growing your business.

I wish you all the best in your new endeavor.

Sincerely,

CONTACT

ADDRESS

corporations@sos.ri.gov 401.222.3040

sos.ri.gov

@RISecState

RI Department of State

148 W River St., Providence, RI 02904

Congratulations on taking the first step in starting your Limited Liability Company in Rhode Island!

Services

Keep track of the information on file

with the RI Department of State

NAME OF LLC (List the name exactly as it appears in the database)

IDENTIFICATION NUMBER (The nine-digit number assigned to your LLC)

RESIDENT AGENT/RESIDENT OFFICE

(List your resident agent and their RI street address)

NAME OF AGENT (Resident Agent)

ADDRESS OF AGENT (Resident Office)

CID/PIN (Use these identifiers to submit online filings)

MANAGEMENT STRUCTURE (Who manages your LLC?)

Members (owners) Manager(s) (hired assistance)

TAX DESIGNATION (How you chose to be taxed federally)

Partnership Corporation Disregarded as an entity separate from its member(s)

Tip

Complete your Snapshot

to make accessing important information about your LLC easy!

PAGE 1 OF 3LLC

MANDATORY ANNUAL FILINGS

Keep track of the filings you must submit to

the RI Department of State, the RI Division

of Taxation and the IRS

STATE FILING – ANNUAL REPORT (FORM 632)

FILING OFFICE: RI Department of StatePERIOD TO FILE: September 1 – November 1ANNUAL FILING FEE: $50

STATE FILING – TAX RETURN (FORM 1065)

FILING OFFICE: RI Division of TaxationDEADLINE TO FILE: By March 15

Minimum $400 corporate tax due

FEDERAL FILING – RETURN

FILING OFFICE: Internal Revenue ServicePERIOD TO FILE*: _

*Depending on your tax structure, your LLC may use a personal or corporate return

The filing period for each varies See irs.gov for more information

EMPLOYMENT IDENTIFICATION NUMBER (EIN)

(The nine-digit number assigned to identify your business)

FISCAL YEAR END (Tax accounting period)

Calendar year (Dec 31) Fiscal year (last day of any other month) _

FEDERAL INFORMATION

Keep track of the information on file

with the IRS

Keep track of your financial, legal,

and insurance support team

ATTORNEY (Name and contact information)

ACCOUNTANT (Name and contact information)

ABOUT MY RECORDS

Business and

Financial Documents

Organizational and Planning Documents

It is extremely important that your LLC record its own rules,

regulations and provisions To do this, you should create and

that determine how the LLC will govern its own operations A

Business Plan is another useful document which will help you

stay on the right track A business plan is typically held internally;

however, you may be asked to provide a copy of your business

plan to financial institutions if you decide to seek funding

Who can help? Contact a qualified attorney

Recordkeeping

While none of these documents are filed with the RI Department of

State or subject to public inspection under normal circumstances,

your business is required to keep careful record of the following:

• Financial statements and annual reports showing income,

expenses and contributions including a summary of transactions in

an accounting journal or ledger for each tax year/accounting period

• A list of all members, including full names and addresses

• Copies of the minutes of annual and other special meetings This

may include meetings of the members to amend the Operating

Agreement, make resolutions, or make other important business

decisions

• Keep these records permanently: audit reports, determination

letter from the IRS and related correspondence, insurance policy

documents, real estate deeds, mortgages, and bills of sale

• Copies of federal, state and local tax returns

Financial Accounts

It is vital that business funds and personal funds be kept separate

A business bank account should never be used to pay personal expenses, and a personal account should never be used to pay business expenses, including payroll When personal and business funds mix, the owner of the personal account risks allowing some or all of his or her personal assets to be attached in payment of the business’s debts

Who can help? Contact a certified public accountant (CPA)

Your Brand

Your business is your brand It is important to ensure that the public sees your LLC as an entity separate from its members If not, you not only risk diluting your brand, members’ own personal assets may be at risk as well If you have a logo, you may also consider filing for a Rhode Island or Federal trademark or service mark to protect its use

Who can help? Contact a qualified attorney

Insurance

There are many reasons a new business may want or need insurance If you operate a brick and mortar location, for instance, you will need liability insurance to protect your business should

an accident happen on the premises You should consult with an insurance agent to determine the requirements for your specific business and determine what type of coverage is necessary

Who can help? Contact an insurance agent

Tip

A new LLC has many important things to consider Don’t be afraid to seek professional help!

The documents you file with the RI Department of State effectively create a legal entity separate from the individuals making up your LLC Those documents do not determine how the business is managed internally

or contain financial or ownership information Your LLC should consider the following important aspects of organizing and running your business.

Visit the IRS Closing a Business Checklist to be sur

File form SS-4 or apply online to obtain your Employer Identification Number (EIN).

File and pay your business taxes Pay the minimum Fee/T

businesses, such as licenses and/or permits Check with your local city/town hall.

Cancel all licenses and permits you will no longer need If you do not cancel, you may be liable for fees.

Nellie M Gorbea Secr

Carry workers’ compensation insurance.

Display unemployment and training posters on-site

Contact the agency if an employee suffers a workplace injury

Rhode Island New Hire Reporting

Directory

ri-newhire.com

888-870-6461 Ext 200

Contact the agency if you hire or re-hire an employee within the last month

U.S Department of Labor

Comply with federal and state workplace safety and health regulations

U.S Citizenship and

Immigration Services

www.uscis.gov

800-375-5283

Complete form I-9 for all employees and store completed forms on-site

There are State & Federal requirements that you must complete to ensure you do things the right way Use this guide to assist you in navigating that big step.

+

This guidance is not intended to replace the assistance of an attorney or CPA

RI Department of Labor and Training

1511 Pontiac Avenue, Cranston, RI 02920 (401) 462-8000

RI Department of Business Regulation

1511 Pontiac Avenue, Cranston, RI 02920

(401) 462-9500

https://dbr.ri.gov/

RI Department of Environmental Management

235 Promenade Street, Providence, RI 02908

(401) 222-4700

http://www.dem.ri.gov/

Contractors’ Registration & Licensing Board

560 Jefferson Blvd., Suite 200, Warwick, RI 02886 (401) 921-1590

http://www.crb.ri.gov/

Public Utilities Commission &

Division of Public Utilities and Carriers

89 Jefferson Blvd., Warwick, RI 02888 (401) 941-4500

http://www.ripuc.org/

Your local Chamber of Commerce may be a great resource to help your business thrive Contact your local chamber directly to find out about the opportunities they offer

Business Support Organizations

RI Commerce Corporation

(401) 278-9100 https://commerceri.com/financing/

RI Small Business Administration

(401) 528-4561 https://www.sba.gov/funding-programs/loans

1

Note: Map includes entities in good standing (excluding all inactive types plus entities under 60 day

revocation notice) This map also excludes entities with primary zip code outside the State of Rhode Island,

or with unspecified primary zip code This map only includes Domestic LLCs, Profit Corporations, and

Non-Profit Corporations Please refer to Table 7 for more details Number of entities is not representative of

the size of the entities in terms of total revenue, or total employment

Source: Rhode Island Department of State

Sources: Rhode Island Department of State; Federal Reserve Economic Data

* Compound Annual Growth Rate

Rhode Island Department of State

New Entity Filings

Strong growth of Foreign Limited Liability Companies, with 9.44%

average annual growth during 2008-2017

Foreign Non-Profit Corporations had the next fastest annual growth rate of 4.88% Domestic LLCs increased by 4.84% annually during the same period

Rhode Island Secretary of State

Business & Economic Report

10-Year Overview (2008-2017)

Copyright © 2019 Roger Williams University Mario J Gabelli School of Business and the Rhode Island Department of State

This report is produced by Roger Williams University Mario J Gabelli School of Business

on behalf of the Rhode Island Secretary of State