June Business Health Analysis
-5%
Month over Month Change
476,320
New US Business Formations
14%
Year over Year Change
Key Takeaways
- Business formations are up 14% nationwide compared to June of last year.
- Wyoming, North Dakota, and Kentucky each more than doubled business formations compared to this time last year.
- California, Colorado, Texas, Delaware, and Florida also saw significant growth.
- Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data.
- In interviews with our clients, business owners reported feeling optimistic about the health of their businesses.
Typical Summer Slowdown, Atypical Numbers
Business formations tend to dip in the summer, and this year is no different. New business formations nationwide continued to decline, this month by 4%. However, while formations are following an established trend, they’re doing so at a much higher rate than last year. U.S. business formations are up 14% compared to this time last year.
WY, ND, and KY More Than Double Formations
In Wyoming, new business formations more than doubled compared to this time last year (56%), continuing an upward trend. No doubt privacy protections and a business-friendly regulatory environment continue to encourage people to form entities in the Cowboy State.
But what is driving growth in Kentucky (up 58%) and North Dakota (up 77%) is less clear. Earlier this year, Trump signed executive orders lifting regulatory burdens on both coal mining and drilling. Are entrepreneurs laying the groundwork for a boom in extractive industries?
Colorado Sends Mixed Signals
California, Texas, Florida, Delaware, and Colorado all continued to show strong growth. Of these typically high-volume states, Colorado showed the biggest jump at 34%. This comes despite the latest University of Colorado’s Leeds Business Confidence Index indicating that confidence remains low among business owners in Colorado. While it can be tough to reconcile a 34% jump in formations with low confidence, one theory is that Coloradans are starting side ventures to supplement income as they feel the financial pressure caused by tariffs and inflation.
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.
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.
Privacy & Accountability
When you start a business, you have to identify yourself. This means providing a name and a street address to the public. There’s a good reason for this. You shouldn’t be able to form a company, rip someone off, dissolve your business and disappear into the night. Anyone who hides behind a small business to scam someone should be held accountable. And to hold someone accountable, you have to be able to find them.
But here’s what some recent news coverage about us has missed. Accountability does not need to equal personal exposure. Hiring a registered agent provides a layer of privacy protection for the business owner, while also preserving accountability. A reliable registered agent ensures that both the public and the government can get in touch with a business owner, but the business owner can keep sensitive information (like their home address!) private.
Modern times have brought an erosion of personal privacy like never before. We believe in resisting wherever we can.
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 Newsroom.
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.
Questions? Get in Touch!
476320
New Business Formations
-4%
Month over Month Change
14%
Year over Year Change
| Location | New Businesses | New Businesses | % Change | New Businesses | % Change | 12 Month Avg. |
|---|---|---|---|---|---|---|
| Alabama | 3571 | 3825 | -7% | 431 | 14% | 3544 |
| Alaska | 959 | 1031 | -7% | 57 | 6% | 990 |
| Arizona | 11054 | 10568 | 5% | 1001 | 10% | 10076 |
| Arkansas | 3267 | 3264 | 0% | 3048 | 7% | 3007 |
| California | 37778 | 38176 | -1% | 32619 | 16% | 36328 |
| Colorado | 17666 | 15894 | 11% | 13137 | 33% | 14609 |
| Connecticut | 4389 | 4838 | -9% | 3916 | 12% | 4,430 |
| District of Columbia | 1429 | 1609 | -11% | 1279 | 12% | 1,405 |
| Delaware | 27232 | 26972 | 1% | 23101 | 18% | 25,213 |
| Florida | 56720 | 58550 | -3% | 52153 | 9% | 53,271 |
| Georgia | 19793 | 20013 | -1% | 17607 | 12% | 19,371 |
| Hawaii | 2151 | 2162 | -1% | 1945 | 11% | 2,023 |
| Idaho | 3668 | 3704 | -1% | 2970 | 24% | 3,423 |
| Illinois | 12853 | 14161 | -9% | 11813 | 9% | 12,858 |
| Indiana | 7487 | 7762 | -4% | 6811 | 10% | 7,676 |
| Iowa | 3301 | 3310 | 0% | 3548 | -7% | 3,179 |
| Kansas | 3109 | 3136 | -1% | 2672 | 16% | 2,849 |
| Kentucky | 5911 | 5099 | 16% | 3732 | 58% | 4,580 |
| Louisiana | 5002 | 5217 | -4% | 4698 | 6% | 4,858 |
| Maine | 1113 | 1225 | -9% | 1290 | -14% | 1,348 |
| Maryland | 4601 | 4716 | -2% | 6787 | -32% | 6,213 |
| Massachusetts | 5539 | 6165 | -10% | 5104 | 9% | 5,688 |
| Michigan | 10788 | 13134 | -18% | 10261 | 5% | 11,347 |
| Minnesota | 6452 | 6520 | -1% | 5830 | 11% | 6,359 |
| Mississippi | 4445 | 4060 | 9% | 3542 | 25% | 3,958 |
| Missouri | 8628 | 8998 | -4% | 7646 | 13% | 8,198 |
| Montana | 5239 | 5434 | -4% | 4262 | 23% | 4,598 |
| Nebraska | 1817 | 2067 | -12% | 1669 | 9% | 1,829 |
| Nevada | 5178 | 5380 | -4% | 4840 | 7% | 5,203 |
| New Hampshire | 606 | 656 | -8% | 1670 | -64% | 1,181 |
| New Jersey | 14006 | 14874 | -6% | 12424 | 13% | 13,603 |
| New Mexico | 4670 | 4602 | 1% | 3264 | 43% | 3,815 |
| New York | 21055 | 22906 | -8% | 19473 | 8% | 21,462 |
| North Carolina | 14701 | 17144 | -14% | 12557 | 17% | 13,464 |
| North Dakota | 1063 | 1297 | -18% | 601 | 77% | 912 |
| Ohio | 12944 | 13692 | -5% | 11027 | 17% | 12,678 |
| Oklahoma | 5131 | 5120 | 0% | 3439 | 49% | 4,667 |
| Oregon | 5267 | 5820 | -10% | 4651 | 13% | 5,337 |
| Pennsylvania | 12148 | 12682 | -4% | 10282 | 18% | 11,614 |
| Rhode Island | 1203 | 1261 | -5% | 966 | 25% | 1,131 |
| South Carolina | 7622 | 8383 | -9% | 6707 | 14% | 7,506 |
| South Dakota | 1311 | 1446 | -9% | 881 | 49% | 1,237 |
| Tennessee | 6473 | 6717 | -4% | 5831 | 11% | 6,432 |
| Texas | 37193 | 39197 | -5% | 32064 | 16% | 36,150 |
| Utah | 2679 | 2429 | 10% | 5359 | -50% | 4,437 |
| Vermont | 950 | 1031 | -8% | 864 | 10% | 856 |
| Virginia | 11224 | 11966 | -6% | 9659 | 16% | 10,775 |
| Washington | 8329 | 9790 | -15% | 8434 | -1% | 9,477 |
| West Virginia | 1587 | 1661 | -4% | 1338 | 19% | 1,528 |
| Wisconsin | 5451 | 5781 | -6% | 4808 | 13% | 5,241 |
| Wyoming | 19567 | 18944 | 3% | 12544 | 56% | 15,621 |