Business Formation Report | March 2025

Key Takeaways

• March indicated a solid recovery from February’s decline, with both an increase in month over month and year over year business formations.
• Legislation in Delaware likely slowed the outflow of businesses moving to other states.
• North Dakota nearly doubled business formations from last month.

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

March Shows Significant Growth

New business registrations in March increased more than 7% compared to last month, jumping to 507,222 formations in total. The combined numbers were up 5% compared to March last year, with 23,760 more new businesses across the country. The numbers in March suggest a solid bounce back from February’s downturn, signaling a return to steadier trends. The rebound came strong in states like Delaware, where Senate Bill 21 refreshed the General Corporation Law to sharpen the state’s appeal and slow the outflow of companies moving to other states. North Dakota was another standout, with formations nearly doubling from last month and a 70% year-over-year jump, fueled by a strong surge in agricultural activity and support.

Predictability in 2025 May Prove Elusive

Meanwhile, some states pulled back after unusually high numbers in February. This is especially evident in Washington, where a declining labor pool and a projected $845 million revenue shortfall are cooling things off, though formations are still ahead of last March. What’s clear is that establishing meaningful patterns during the first quarter of 2025 will be a challenge (outside of the consistent big hitters like CA, TX, and FL), as one rough month can quickly transition to a booming one. But overall, the numbers are up across the board in March. As international trade and tariff confusion persists, many business owners are tired of waiting and looking to insulate themselves despite the continued uncertainty.

Please note that these insights are based on available data, which may be updated as more complete numbers become available.