The Secretary’s MinuteMy fellow South Dakotans, it’s my privilege to provide the public with a 4th Quarter Economic Report and a 2011 Year-End Review for the state of South Dakota. As 2011 has come to a close, this issue is a review of what took place over the last 12 months and a reflection on my first 12 months in office.

Innovation and technology have been the biggest changes to my office. One of these changes in 2011 affecting corporations was allowing electronic submission of annual reports. Since August 1, 2011, businesses have had the option to use my website for submitting annual reports. I am proud to announce that to date 13,580 businesses have exercised that option. Using this new method to file corporate documents is beneficial to the economic growth in South Dakota. It not only reduces staff costs, but also decreases the cost for taxpayers and business owners who interact with my office.

During the 4th quarter of 2011, we also began the fight against corporate identity theft. We added an information portal to help educate, prevent and even report corporate identity theft. Because of the rise in cyber-crime, we have taken additional steps to create a more secure method for transacting business electronically.

I hope you find this information useful and that it helps keep you up to speed on the happenings throughout the state. In my first full year as Secretary of State, I strived to bring new ideas and exceptional service to you. I’m excited about the projects we’ve already accomplished this year and hope to make 2012 an even more productive one.J

2011 Year End ReviewNew corporate filings started off strong in 2011 with over 1,600 new corporations forming in the first quarter alone. This was an expected trend following the consistent growth in new-entity filings in the fourth quarter of 2010. Unemployment peaked during the months of February and March of 2011; this was followed by a drop in corporate filings over the second and third quarters of 2011.

Gross Sales

South Dakota Gross Sales for 2011 fared well compared to 2010. In July 2011 alone, South Dakota had Gross Sales of one billion dollars more than compared to the same month of 2010.

Unemployment

Unemployment has been on a steady decline since in February and March of 2011, it is also down from last year. The fourth quarter had the lowest unemployment rate with November being the lowest of the last year.

New Entity Filings

We have seen a 63% increase in the number of corporate filings from new entities at the end of the year; going from 412 new corporations in November to 672 in December.

Secretary Gant is touring the state, presenting the new “South Dakota Open for Business” web site in an effort to both innovate and simplify business services. If you would like to schedule a meeting with Secretary Gant

for your organization or classroom, please contact us at 605-773-5008 or via e-mail at openforbiz@state.sd.us

Secretary of State Jason GantEconomic Report: Statistics at a glance

New Filings - Domestic Quarter 1 - 2011 (Jan - Mar)

Quarter 2 - 2011 (Apr-Jun)

% Change (Qtr 1 vs Qtr 2)

Quarter 3 - 2011 (July - Sept)

Quarter 4 - 2011 (Oct-Dec)

% Change(Qtr 3 vs Qtr 4)

Corporations 254 205 -19.29% q 177 229 29.38% Limited Liability Companies 884 805 -8.94% q 813 871 7.13% Nonprofit Corporations 73 62 -15.07% q 56 48 -14.29% qLimited Partnerships 35 17 -51.43% q 21 40 90.48% Limited Liability Partnerships 20 26 30.00% 12 13 8.33% General Partnerships 0 1 100.00% 0 1 100.00% Total 1,266 1,116 -11.85% q 1,079 1,202 11.40%

New Filings - Foreign Quarter 1 - 2011 (Jan - Mar)

Quarter 2 - 2011 (Apr-Jun)

% Change (Qtr 1 vs Qtr 2)

Quarter 3 - 2011 (July - Sept)

Quarter 4 - 2011 (Oct-Dec)

% Change(Qtr 3 vs Qtr 4)

Corporations 186 203 9.14 192 218 13.54% Limited Liability Companies 139 162 16.55 132 134 1.52% Nonprofit Corporations 20 11 -45.00% q 17 12 -29.41% qLimited Partnerships 5 8 60.00 9 10 11.11% Limited Liability Partnerships 2 1 -50.00% q 2 5 150.00% General Partnerships 0 0 0.00% 0 0 0.00%Total 352 385 9.38% 352 379 7.67%

The South Dakota Secretary of State Economic Report is provided as a courtesy of the Secretary of State’s of-fice and is a compilation of business registration data from the Secretary of State’s office, and other applicable sources. For more information, contact South Dakota Secretary of State, Business Services, 500 East Capitol, Suite 204, Pierre, SD 57501, e-mail openforbiz@state.sd.us, or visit our website at www.sdopenforbusiness.com

Legislation affecting your business

• HB1056-Revisecertainprovisions of the South Dakota Business Corporations Act regard-ing the issuance of shares and cumulative voting for directors.

• HB1059-ReviseArticle9of the Uniform Commercial Code.

• HJR1001-Proposingandsubmitting to the electors at the next general election an amend-ment to Article XVII of the Consti-tution of the State of South Dakota, relating to corporations.

• SB66-Permitthefilingofcertain documents with the Secre-tary of State by electronic means and to remove the notary require-ments. • SB67-Provideprovisionsthat all documents filed with and maintained by the Office of the Secretary of State may be filed elec-tronically.

• SB91-Allowsharehold-ers of subchapter S corporations to represent the corporation in property tax appeals at the Office ofHearingExaminers.

• SB190-Permitthefilingofcertain agricultural lien documents with the Office of the Secretary of State by electronic means.

1. What made you decide to start a business?

a. We enjoy baking and making people happy. It all kind of started at my bridal shower when I baked the desserts and it pretty much took off from there.

2. What advice would you give to other entrepreneurs looking to start a business?a. Just to hang in there. Everything doesn’t come right away and it can be frustrating. For us we have found that attending trade shows have been an excellent way to share ideas and learn what others have been doing. Networking at these functions has given us valuable insight especially in marketing our business.

3. Did you have an advisor or mentor to help answer questions about starting a business?a. Yes, we met with the Small Business Administration in Brookings and they were very helpful. We knew what we wanted to do but didn’t know all the requirements including registering with the Secretary of State’s office. They really guided us. The help and support of friends and family has been great and we couldn’t have done it without them either.

4. What is your best seller or flavor?a. Our “Ho-Ho” cupcakes are easily the best seller. They are a chocolate cupcake with marshmallow in the middle and chocolate ganache on top. They are similar to what you would get in a store but ours are MUCH better.

5. Where do you see yourselves in one year?a. We just hope to have a steady business and we will look to increase our marketing.

6. How do you feel about the economy? a. There doesn’t seem to be a lot of confidence in the national economy but Brookings is doing better and is growing with new businesses.

Visit their website at http://simplycupcakes.vpweb.com

Secretary’s SpotlightSimply Cupcakes began in September of 2011 in Brookings, SD. Owners Jennifer Hansen and Joni Hurd sat down with us for questions and answers about their new business.