Business Formation Report | January 2026

Key Takeaways

• Overall, January formations are level with the same time last year
• 45 out of 51 jurisdictions show increased formation numbers from last month
• Florida, despite delivering the most formations last year, was one of only 6 states down from last month (-13%)
• Florida also saw the biggest dip from January of 2025 (-36%)

Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.

Early 2026 Numbers Indicate Continued Momentum

January formation numbers already point toward another strong year. So far, new business counts are doing two things at once: staying level with January 2025 while also outperforming last month by a respectable 18%.

This early kick start to the year is widespread, too. Several states posted sharp month-over-month gains, including West Virginia, North Carolina, and Kentucky climbing 53%, 52%, and 48% respectively. This isn’t simply a bounce back from regions that remained cautious in the final quarter of 2025, either, as many states also soared over January of last year as well. Wyoming is up 32% from January of 2025, and Oregon grew 18% over the same period.

As formations surge, this year seems to be continuing the trends established in 2025. When job markets tighten, business formations tend to surge—and that’s what we’re seeing now.

Most States Grew Over Last Month, and Last Year

Reinforcing a pattern of steady national momentum, January’s numbers remain in lock step with January of 2025, which marked the highest on record for the Business Formation Report. Getting more specific, all but 6 jurisdictions recorded increases over last month, and most also posted gains compared with last January.

At the same time, 15 jurisdictions recorded year-over-year declines, including several states that typically contribute meaningfully to national totals. This introduces a subtle note of caution beneath an otherwise stable national picture. The combination of broad-based growth alongside key regional slowdowns is an important watch point as Q1 2026 continues to unfold.

Florida Sees Uncharacteristic Slump

Beneath the overall rise in formations was an unexpected dip. Florida declined 36% from January of 2025 after leading the nation in total formations throughout last year. While percentage swings in smaller states typically level out as the year progresses, significant drops by heavy hitters are more surprising. Simply put, the state stands out starkly against a backdrop of relative stability with this pullback.

Florida was also one of only six jurisdictions to post month-over-month declines, slipping 13% from December. The drop is especially striking given that Florida entered 2025 with solid growth over 2024 and maintained leadership in overall formation volume all year.

Still, this doesn’t meaningfully alter the national picture, as national numbers still remain level overall. Whether this downturn hints at a potential cooldown for one of the most active formation hubs or a short-term correction remains to be seen.

Business Owner Confidence Refuses to Waver

As with every installment of the Business Formation Report, we spoke to new business owners to better understand of how they’re feeling about the year ahead. More than two-thirds of the entrepreneurs who responded told us that they’re still very optimistic about their business success over the next 12 months.

That confidence is not emerging in a vacuum. With formation numbers refusing to slow down, it’s clear that we’re still operating in a period of sustained small business strength; one that will continue to support broader economic stability and growth.