February Business Health Analysis
13%
Month over Month Change
442,100
New US Business Formations
4%
Year over Year Change
Key Takeaways
- Business formation in the US fell sharply in February compared to January.
- Business formation is also down by 4% compared to February of 2024.
- Tariff concerns, trade tensions, winter storms and budget cuts are likely to blame for the downturn.
Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.
Uncertainty Slows Business Formations
In February 2025, business formations across the states saw a 13% decrease compared to the previous month, with 442,100 new registrations in total. The year-over-year numbers were down 4% compared to February last year, with 18,943 fewer new businesses across the country. While January gave us a brief spike in new business formations, February saw numbers dip across much of the country. Most states posted lower formation totals this month, and most fell short of their February 2024 numbers. The slowdown comes at the same time as looming tariff concerns, trade tensions, severe winter storms, and the early impacts of federal budget cuts. With uncertainty mounting both at home and abroad, many entrepreneurs appear to be postponing—at least for now—on opening up shop. Still, Washington state had a particularly strong showing this month, boosted by small business grants and a new tax credit proposal aimed at easing the burden on investors.
Please note that these insights are based on available data, which may be updated as more complete numbers become available.
442100
New Business Formations
-13%
Month over Month Change
-4%
Year over Year Change
| Location | New Businesses | New Businesses | % Change | New Businesses | % Change | 12 Month Avg. |
|---|---|---|---|---|---|---|
| Alabama | 3150 | 4135 | 26% | 4766 | 9% | 3,696 |
| Alaska | 770 | 1101 | -30% | 949 | -19% | 995 |
| Arizona | 10203 | 11261 | -9% | 10707 | -5% | 10,261 |
| Arkansas | 2883 | 3319 | -13% | 3159 | -9% | 3,008 |
| California | 36983 | 49030 | -10% | 35458 | 24% | 34,840 |
| Colorado | 14269 | 16731 | -33% | 11947 | -7% | 13,784 |
| Connecticut | 4077 | 5009 | -19% | 4426 | -8% | 4,305 |
| Delaware | 23100 | 25927 | -84% | 23100 | -79% | 24,245 |
| District of Columbia | 1227 | 1671 | -27% | 1463 | -16% | 1,384 |
| Florida | 53194 | 61172 | -13% | 56397 | -6% | 52,545 |
| Georgia | 20165 | 22697 | -11% | 20408 | -1% | 19,042 |
| Hawaii | 1468 | 2374 | -38% | 2153 | -32% | 2,051 |
| Idaho | 2916 | 3993 | -27% | 3562 | -18% | 3,373 |
| Illinois | 12441 | 13255 | 31% | 12636 | 12% | 12,461 |
| Indiana | 7274 | 8812 | -17% | 8099 | -10% | 7,643 |
| Iowa | 2609 | 3652 | -29% | 2884 | -10% | 3,165 |
| Kansas | 2633 | 3124 | -16% | 2795 | -6% | 2,718 |
| Kentucky | 4137 | 5128 | -19% | 3927 | 5% | 4,113 |
| Louisiana | 5854 | 4911 | 19% | 5050 | 16% | 4,758 |
| Maine | 1086 | 1665 | -35% | 1389 | -22% | 1,374 |
| Maryland | 8134 | 5576 | 46% | 7702 | 6% | 6,790 |
| Massachusetts | 6215 | 7236 | -14% | 5491 | 13% | 5,496 |
| Michigan | 12098 | 11577 | 5% | 9734 | 24% | 11,162 |
| Minnesota | 6544 | 7100 | -22% | 6654 | -17% | 6,248 |
| Mississippi | 3911 | 4217 | -7% | 4086 | -4% | 3,823 |
| Missouri | 8079 | 8079 | -29% | 8115 | -16% | 8,190 |
| Montana | 4104 | 5252 | -22% | 4468 | -8% | 4,360 |
| Nebraska | 1666 | 1877 | -11% | 1916 | -13% | 1,802 |
| Nevada | 5072 | 6004 | -16% | 5161 | -2% | 5,124 |
| New Hampshire | 1250 | 1050 | 19% | 1787 | -30% | 1,595 |
| New Jersey | 13048 | 15132 | -14% | 13931 | -6% | 13,311 |
| New Mexico | 2991 | 2859 | 5% | 3515 | -15% | 3,321 |
| New York | 23748 | 24459 | -3% | 22127 | 7% | 20,945 |
| North Carolina | 12819 | 14258 | -10% | 14512 | -12% | 13,198 |
| North Dakota | 724 | 919 | -21% | 767 | -6% | 760 |
| Ohio | 12349 | 14636 | -16% | 13199 | -6% | 12,299 |
| Oklahoma | 4261 | 5439 | -22% | 3745 | 14% | 4,095 |
| Oregon | 4664 | 6120 | -24% | 5568 | -16% | 5,319 |
| Pennsylvania | 11786 | 11990 | -2% | 12135 | -3% | 11,275 |
| Rhode Island | 940 | 1433 | -34% | 1139 | -17% | 1,092 |
| South Carolina | 7533 | 8462 | -11% | 7887 | -4% | 7,333 |
| South Dakota | 965 | 1476 | -35% | 1260 | -23% | 1,193 |
| Tennessee | 7402 | 7635 | -3% | 6474 | 14% | 6,238 |
| Texas | 40595 | 39448 | 3% | 35626 | 14% | 34,471 |
| Utah | 5468 | 6315 | -13% | 6718 | -19% | 5,744 |
| Vermont | 583 | 761 | -23% | 1042 | -44% | 877 |
| Virginia | 10166 | 12345 | -18% | 11142 | -9% | 10,454 |
| Washington | 10209 | 11166 | 38% | 8969 | 71% | 8,817 |
| West Virginia | 1294 | 1671 | -23% | 1805 | -28% | 1,534 |
| Wisconsin | 5092 | 6313 | -19% | 5385 | -5% | 5,107 |
| Wyoming | 14048 | 15001 | 28% | 13708 | 52% | 12,783 |