April Business Health Analysis
2%
Month over Month Change
472,198
New US Business Formations
3%
Year over Year Change
Main Takeaways
- Business formations fell 2% in April nationwide.
- Despite tariff fears, business formations were up compared to April 2024.
- Smaller states like Kansas, Colorado, Maine, and North Dakota have shown steady growth.
- Maryland and New Hampshire showed sharp declines.
Consistent Growth in Smaller States
Kansas, Colorado, Maine, and North Dakota have shown consistent growth over the past year, likely thanks to investments in workforce development and support for emerging industries. Rarely at the top of our rankings, Kansas has been quietly laying the groundwork for long-term growth and putting resources where they’ll have the most impact. The Kansas Framework for Growth stands out for its focus on key emerging sectors, pairing targeted investments with supportive policies. Maine has been steadily gaining ground, too, with GDP growth outpacing the national average. Colorado is making bold investments in AI and tech, highlighted by the recent Data Center Development & Grid Modernization Act.
Sharp Declines in Maryland in New Hampshire
With most states showing minimal movement in April, a few stand out for sharp declines. Maryland saw some new momentum in early 2025 after a sluggish 2024, but that progress stalled in April, potentially due to backlash over a proposed B2B services tax. New Hampshire, meanwhile, continues a downward trend that began in early 2024, possibly linked to earlier tax cuts that limited the state’s ability to invest in essential services.
Customer Insights
This month, we’re introducing a new feature of our report that reflects how our customers are feeling about their businesses. By talking directly with business owners (from solo entrepreneurs to businesses with over 150 employees), we’ve gathered insight into how they view their current performance and their expectations for the future. This is just one part of our ongoing effort to better understand our customers and help them make smarter decisions around hiring, spending, and planning. While we continue working toward a scalable, long-term way to collect this kind of data, we’re excited to share what we’re noting with our first round of outreach.
40.2%
Stronger this year than last
How would you describe the overall health of your business today compared to this time last year?
So far, the sentiment we’re seeing from our customers is largely steady and confident. A little more than half of business owners (51.8%) feel they’re holding steady, while 40.2% feel they’re doing slightly better than last year.
70.6%
Very optimistic
How optimistic are you about your business’s success over the next 12 months?
Optimism for the year ahead is high, with many expressing a strong sense of possibility despite broader economic uncertainty.
45.4%
No
Do you expect your business to be impacted by potential tariffs?
Tariffs came up as a concern for some, but not a dominant one (more of a question mark than a crisis). Overall, the tone is one of cautious confidence, with business owners focused on keeping pace and staying prepared for whatever comes next.
About the Business Formation Report
The Registered Agents Inc Business Formation Report offers a monthly snapshot of business creation in every state. The figures are based on aggregated, anonymized data, drawn from state-level filings and cross-referenced against US Census Bureau data. Compiled by a team of analysts, this report is a free resource for use by business owners, journalists, policymakers, and industry stakeholders.
How to Use this Report
The Business Formation Report tells just one piece of a wider story. When considered in tandem with other sources and industry trends, business formation data can help policymakers, journalists, and founders with the following:
Anticipate Regional Shifts
Following upticks or dips in new business formations across the country can help spot trends that may indicate economic health in different regions. This can provide insight into emerging industries and investment opportunities.
Assess Policy Impact
A sharp increase or decrease in business creation that coincides with recent policy change can reveal the impact of local regulatory changes and help policymakers assess whether policies drive or hinder economic development.
Gauge Economic Confidence
Willingness to invest in new ventures and take on financial risk often signals optimism about the economy. Likewise, a drop in formations may indicate fears of a downturn.
Who is Registered Agents Inc?
Registered Agents Inc is the largest business formation service you’ve never heard of, and that’s on purpose. Discretion is at the core of our services, and we currently support over one million businesses in the United States. We help to streamline bureaucratic processes and empower small business owners to go further while protecting their personal privacy.
In other words, we support the very people who power these trends: folks who take the leap and start a business. This report aims to give these brave entrepreneurs and the broader market insights they can leverage to assess the economic landscape and make decisions.
We operate in every state and jurisdiction.
We’re a national registered agent service with offices in every state and are currently one of the largest registered agent providers in the country. This allows us both breadth and granularity no one else can match, so our report can capture both the big picture and zoom in on detailed data points.
We let the numbers speak for themselves.
Because privacy is a core value at Registered Agents Inc, we never sell customer data. Our report is meant to act as an unbiased, neutral resource for the very people we serve. This means that we report the numbers as they are, regardless of the existing political climate.
We work for—not against—business owners.
Our mission is to support small business owners, wherever they are on their journey. All our tools, from registered agent service to the suite of business identity products we offer, are meant to enable founders. This report is a natural extension of this commitment, and we hope entrepreneurs can leverage it for decision-making.
Frequently Asked Questions
Who creates the Business Formation Report?
A team of data analysts, software engineers, customer service representatives and writers at Registered Agents Inc works together to compile the Business Formation Report each month.
Where does the data in the Business Formation Report come from?
Business formation data is collected from the Secretary of State or equivalent agency of each state, when available, and cross-checked against the US Census Bureau data. Customer sentiment data is collected directly from clients to provide snapshot of economic outlook.
Is this report politically affiliated?
No. At Registered Agents Inc, we have one mission: to support small business owners at every step of their journey. Our mission, and the ways in which we fulfill it, is independent of any political leanings. We have no affiliation with political parties or politically driven groups.
Can I access past reports?
Yes! You can access monthly Business Formation Reports going back to September of 2024. Check out our News Room.
How should I interpret regional or seasonal fluctuations in business formation volumes?
Interpreting data requires a nuanced approach that cross-references other data points or resources. For example, fluctuations could be affected by policy changes, GDP growth, consumer confidence, interest rates, market demand, and even the weather.