April Business Health Analysis
2%
Month over Month Change
472,198
New US Business Formations
3%
Year over Year Change
Key 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.
Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.
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.
Please note that these insights are based on available data, which may be updated as more complete numbers become available.
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.
472198
New Business Formations
-2%
Month over Month Change
3%
Year over Year Change
| Location | New Businesses | New Businesses | % Change | New Businesses | % Change | 12 Month Avg. |
|---|---|---|---|---|---|---|
| Alabama | 3166 | 3999 | -21% | 4553 | -30% | 3512 |
| Alaska | 1181 | 1155 | 2% | 1080 | 9% | 994 |
| Arizona | 11864 | 11540 | -4% | 11365 | -13% | 10030 |
| Arkansas | 3224 | 3336 | -3% | 3266 | -1% | 2978 |
| California | 39943 | 40578 | -16% | 36384 | -4% | 35778 |
| Colorado | 16821 | 16530 | 2% | 14425 | 17% | 14075 |
| Connecticut | 4864 | 5377 | -10% | 4532 | 7% | 4362 |
| Delaware | 26306 | 27057 | -3% | 25230 | 4% | 24711 |
| District of Columbia | 1581 | 1593 | -1% | 1554 | 2% | 1376 |
| Florida | 59386 | 61629 | -4% | 59343 | 0% | 52735 |
| Georgia | 20910 | 23042 | -9% | 20421 | 2% | 19170 |
| Hawaii | 2265 | 2346 | -3% | 2260 | 0% | 2003 |
| Idaho | 3959 | 3815 | 4% | 3641 | 9% | 3362 |
| Illinois | 15130 | 14518 | 4% | 13867 | 9% | 12651 |
| Indiana | 8141 | 9014 | -10% | 8046 | 1% | 7625 |
| Iowa | 3598 | 3481 | 3% | 3227 | 11% | 3209 |
| Kansas | 3457 | 3285 | 5% | 2868 | 21% | 2786 |
| Kentucky | 4943 | 5092 | -3% | 4592 | 8% | 4271 |
| Louisiana | 5650 | 5232 | 8% | 5397 | 5% | 4830 |
| Maine | 1539 | 1679 | -8% | 1310 | 17% | 1378 |
| Maryland | 8474 | 8074 | -30% | 7951 | -29% | 6636 |
| Massachusetts | 6187 | 6580 | -6% | 5729 | 8% | 5637 |
| Michigan | 13749 | 13134 | 5% | 15069 | -9% | 11284 |
| Minnesota | 7261 | 8243 | -12% | 6861 | 6% | 6307 |
| Mississippi | 4395 | 4627 | -5% | 4120 | 7% | 3871 |
| Missouri | 9295 | 9121 | 2% | 9476 | -2% | 8074 |
| Montana | 5668 | 5622 | 1% | 5096 | 11% | 4446 |
| Nebraska | 2090 | 2086 | 0% | 1788 | 17% | 1809 |
| Nevada | 5632 | 5887 | -4% | 5429 | 4% | 5170 |
| New Hampshire | 643 | 645 | 0% | 1752 | -63% | 1352 |
| New Jersey | 0 | 15751 | -100% | 13705 | -100% | 13273 |
| New Mexico | 70 | 97 | -28% | 3587 | -98% | 2694 |
| New York | 22926 | 24089 | -5% | 21597 | 6% | 21278 |
| North Carolina | 14335 | 13543 | 6% | 13932 | 3% | 13035 |
| North Dakota | 1151 | 1351 | -15% | 851 | 35% | 827 |
| Ohio | 14250 | 14832 | -4% | 13015 | 9% | 12429 |
| Oklahoma | 5470 | 5565 | -2% | 3851 | 42% | 4407 |
| Oregon | 6031 | 5908 | 2% | 5749 | 5% | 5270 |
| Pennsylvania | 12877 | 13405 | -4% | 11955 | 8% | 11383 |
| Rhode Island | 1353 | 1390 | -3% | 1156 | 17% | 1100 |
| South Carolina | 8178 | 8689 | -6% | 8030 | 2% | 7365 |
| South Dakota | 1419 | 1485 | -4% | 1295 | 10% | 1189 |
| Tennessee | 6639 | 7090 | -6% | 6646 | 0% | 6356 |
| Texas | 39455 | 39479 | 0% | 36915 | 7% | 35445 |
| Utah | 97 | 6109 | -50% | 6807 | -100% | 5457 |
| Vermont | 1123 | 1112 | 1% | 1056 | 6% | 845 |
| Virginia | 12086 | 12529 | -4% | 10999 | 10% | 10541 |
| Washington | 9824 | 10515 | -7% | 10188 | -4% | 9399 |
| West Virginia | 1786 | 1857 | -4% | 1680 | 6% | 1508 |
| Wisconsin | 5986 | 6111 | -2% | 5532 | 8% | 5157 |
| Wyoming | 19144 | 18465 | -15% | 13783 | 14% | 14608 |