Introduction

Watertown, NY, is undergoing significant changes in its economic and business landscape. At Watertown Business Advisory, LLC (wbaconsulting.org), our mission is to support local businesses by identifying trends, challenges, and opportunities, fostering growth, and enhancing compliance awareness. This article is part of a series exploring Watertown’s business needs and challenges, building on our previous posts about population trends, market stagnation, and the importance of shopping local.

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A Surge in Active Businesses

In recent years, Jefferson County and neighboring counties (Oswego, Lewis, and St. Lawrence) have seen a steep rise in business formations. Using data from NYS databases, we analyzed businesses active since the 1990s, cutting off the dataset at December 2024 for completeness.

• Key Insight: Approximately 6,766 active businesses are spread across these counties. The growth is consistent with trends in entrepreneurial activity, despite stagnant population growth.

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Business Categories on the Rise

To better understand the types of businesses driving this growth, we categorized them using sample business names. The findings highlight the following trends:

1. Real Estate:
   • There is a strong correlation between the Housing Market Index (HMI) and the rise in real estate businesses. Many LLCs were formed to manage properties for rentals and other real estate ventures.
2. Professional Services:
   • This includes holding companies, which are essential for asset protection and business diversification.
3. Food & Dining:
   • This sector ranks third in growth, reflecting increased demand for local dining options.
4. Construction:
   • With long waiting times for contractors, construction businesses are growing, but the shortage in skilled labor persists.

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Correlating Real Estate Growth with Housing Trends

• Key Insight: Real estate growth aligns with housing market opportunities, suggesting entrepreneurs are seizing gaps in rental and housing services. This trend underscores the importance of real estate LLCs for market stability and expansion.

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Compliance Gaps: A Silent Risk

Compliance is crucial for small business owners to avoid legal vulnerabilities and seize growth opportunities. Here’s what NYS businesses need to know:

Key Compliance Requirements

1. Certificate of Publication:
   • LLCs must publish their formation notices in local newspapers and file a Certificate of Publication.
   • Non-compliance exposes businesses to legal risks, including the inability to file lawsuits.
2. Biennial Reports:
   • Required every two years to maintain an active status and obtain a Certificate of Good Standing, which is vital for loans and grants.

• Key Insight: Over 50% of businesses are missing one or more compliance requirements. These gaps can result from ignorance or misunderstanding but leave businesses vulnerable to lawsuits, loan denials, and grant ineligibility.

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Recommendations for Small Businesses

Supporting Growth and Sustainability

1. Educate on Compliance:
   • Our previous post, “Forming an LLC in Jefferson County” dives deeper into the how and steps to be compliant in NYS.
2. Promote Training and Resources:
   • Local governments can help by offering workshops on compliance, asset protection, and industry-specific skills, particularly for construction and home maintenance.
3. Focus on Underserved Markets:
   • Business owners can leverage trends in professional services and real estate to meet local needs.

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Conclusion

Watertown Business Advisory is committed to educating and supporting local businesses. By addressing compliance gaps, identifying underserved sectors, and promoting local collaboration, we aim to foster a resilient economy. Explore more insights and resources at wbaconsulting.org, and stay tuned for our next post, where we’ll dive into construction industry opportunities in detail.