July Business Health Analysis
4%
Month over Month Change
503,240
New US Business Formations
10%
Year over Year Change
Key Takeaways
- Business formations nationwide were up both month over month (4%) and year over year (10%) for the first time since March 2025.
- Wyoming surprised with a steep decrease in formations. Colorado and Maryland also saw sharp declines.
- Michigan, Illinois, New Hampshire, and Washington saw significant gains.
- Business owners we spoke with continued to report strong optimism about the health of their businesses.
Summer Slump Ends
The so-called summer slump in business formations seems to have ended in July. Formations nationwide were back on an upward trend for the first time in three months, with a 4% increase from June 2025 and up overall 10% compared to July 2025.
This seasonal shift could mark the beginning of an upward trend as entrepreneurs prepare for fall.
Wyoming Sees Surprising Drop in Business Formations
While business formations were up nationwide in July, Wyoming reversed its upward trajectory with a sharp 15% decline in business formations. Due to its strong privacy protections, Wyoming tends to be a popular state for LLC formation among both out-of-state and international owners. A downturn in business formations in Wyoming could be an early indicator of a downturn in formations nationwide, or a harbinger of decreased foreign investment in the United States.
Colorado and Maryland also saw declines. Colorado’s drop (-17%) follows a study from the Leeds School of Business indicating that business confidence remains “squarely in negative territory” in Q3.
Business Owners Feel Confident
Business owners we spoke with continued to report a sunny outlook on their business outcomes, with 72% reporting feeling “very optimistic” about the coming year. Most (71%) say they have not delayed any major decisions due to economic uncertainty, and 92% of business owners say the overall health of their business is the same (50%) or stronger (42%) than last year.
Please note that these insights are based on available data, which may be updated as more complete numbers become available.
Nationwide Formation Metrics
503240
New Business Formations
4%
Month over Month Change
10%
Year over Year Change
|
Location
|
New Businesses
July 2025
|
New Businesses
June 2025
|
% Change
|
New Businesses
July 2024
|
% Change
July 2024 v. July 2025
|
12 Month Avg.
August 2024-July 2025
|
|---|---|---|---|---|---|---|
| Alabama | 3277 | 3571 | -8% | 4490 | -27% | 4,574 |
| Alaska | 929 | 959 | -3% | 1014 | -8% | 934 |
| Arizona | 11393 | 11779 | -3% | 10444 | 9% | 10,807 |
| Arkansas | 3554 | 3270 | 9% | 3178 | 12% | 3,156 |
| California | 38944 | 37556 | 4% | 34969 | 11% | 34,837 |
| Colorado | 14709 | 17624 | -17% | 13525 | 8% | 13,301 |
| Connecticut | 4781 | 4371 | 9% | 4358 | 10% | 4,389 |
| District of Columbia | 1522 | 1442 | 6% | 1354 | 12% | 1,169 |
| Delaware | 28954 | 27232 | 6% | 23120 | 25% | 24,233 |
| Florida | 57008 | 56765 | 0% | 54036 | 6% | 51,384 |
| Georgia | 20610 | 19886 | 3% | 18950 | 9% | 19,969 |
| Hawaii | 2143 | 2147 | 0% | 2106 | 2% | 2,129 |
| Idaho | 3687 | 3660 | 1% | 3265 | 13% | 3,365 |
| Illinois | 15056 | 12824 | 17% | 12660 | 19% | 13,065 |
| Indiana | 8177 | 7745 | 6% | 7713 | 6% | 7,790 |
| Iowa | 3332 | 3290 | 1% | 3361 | -1% | 3,153 |
| Kansas | 3171 | 3101 | 2% | 3038 | 4% | 2,769 |
| Kentucky | 6490 | 5853 | 11% | 6082 | 7% | 5,200 |
| Louisiana | 5319 | 5002 | 6% | 5060 | 5% | 5,081 |
| Maine | 1242 | 1420 | -13% | 1388 | -11% | 1,264 |
| Maryland | 5664 | 7239 | -22% | 7273 | -22% | 7,524 |
| Massachusetts | 5952 | 5534 | 8% | 5377 | 11% | 5,478 |
| Michigan | 14140 | 10703 | 32% | 11874 | 19% | 11,694 |
| Minnesota | 6357 | 6437 | -1% | 6217 | 2% | 6,431 |
| Mississippi | 4783 | 4432 | 8% | 3791 | 26% | 3,629 |
| Missouri | 9451 | 8735 | 8% | 8242 | 15% | 8,269 |
| Montana | 6139 | 5381 | 14% | 4420 | 39% | 4,373 |
| Nebraska | 1779 | 1816 | -2% | 1828 | -3% | 1,826 |
| Nevada | 5549 | 5150 | 8% | 5258 | 6% | 5,205 |
| New Hampshire | 1047 | 641 | 63% | 1774 | -41% | 1,838 |
| New Jersey | 14835 | 14006 | 6% | 12973 | 14% | 13,416 |
| New Mexico | 4507 | 4670 | -3% | 4098 | 10% | 3,601 |
| New York | 22447 | 21160 | 6% | 21124 | 6% | 21,823 |
| North Carolina | 14698 | 14671 | 0% | 14694 | 0% | 13,724 |
| North Dakota | 1208 | 1062 | 14% | 867 | 39% | 913 |
| Ohio | 14329 | 12894 | 11% | 12223 | 17% | 12,345 |
| Oklahoma | 5547 | 5122 | 8% | 5227 | 6% | 4,904 |
| Oregon | 5905 | 5256 | 12% | 5308 | 11% | 5,345 |
| Pennsylvania | 12666 | 12142 | 4% | 11419 | 11% | 11,366 |
| Rhode Island | 1251 | 1201 | 4% | 1125 | 11% | 1,123 |
| South Carolina | 8348 | 7586 | 10% | 7407 | 13% | 7,598 |
| South Dakota | 1456 | 1311 | 11% | 1200 | 21% | 1,219 |
| Tennessee | 7139 | 6467 | 10% | 6312 | 13% | 6,351 |
| Texas | 40100 | 37127 | 8% | 33315 | 20% | 34,412 |
| Utah | 6487 | 6971 | -7% | 6010 | 8% | 6,083 |
| Vermont | 1031 | 949 | 9% | 948 | 9% | 880 |
| Virginia | 12147 | 11210 | 8% | 10744 | 13% | 10,765 |
| Washington | 10059 | 8318 | 21% | 9263 | 9% | 8,936 |
| West Virginia | 1606 | 1588 | 1% | 1605 | 0% | 1,581 |
| Wisconsin | 5738 | 5440 | 5% | 5267 | 9% | 5,344 |
| Wyoming | 16577 | 19567 | -15% | 14205 | 17% | 14,023 |