May Business Health Analysis
1%
Month over Month Change
489,378
New US Business Formations
5%
Year over Year Change
Key Takeaways
- Business formations nationwide are up 5% from this time last year.
- May was the third consecutive month wherein business formations were up year over year.
- Wyoming, Delaware, and North Dakota saw the highest increases year over year.
- Business owners identified rising costs as the biggest threat to their business.
Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.
Wyoming and Delaware Remain Popular, While North Dakota Continues a Steep Climb
Likely due to business-friendly regulations and privacy protections, Wyoming and Delaware both saw increases in business formation. However, North Dakota saw the biggest jump, with formations up 75% year over year. The Trump Administration’s “Big, Beautiful Bill” promises to bolster drilling in the West, which could be driving growth in North Dakota.
Please note that these insights are based on available data, which may be updated as more complete numbers become available.
Nationwide Formation Metrics
489378
New Business Formations
-1%
Month over Month Change
5%
Year over Year Change
|
Location
|
New Businesses
May 2025
|
New Businesses
April 2025
|
% Change
|
New Businesses
May 2024
|
% Change
May 2024 v. May 2025
|
12 Month Avg.
June 2024-May 2025
|
|---|---|---|---|---|---|---|
| Alabama | 3825 | 3166 | 21% | 3862 | -1% | 3,509 |
| Alaska | 1031 | 1181 | -13% | 1137 | -9% | 985 |
| Arizona | 11540 | 11864 | 7% | 11018 | -4% | 9,993 |
| Arkansas | 3264 | 3224 | 1% | 3133 | 4% | 2,989 |
| California | 38176 | 34990 | 9% | 36731 | 4% | 35,898 |
| Colorado | 15894 | 16821 | -6% | 14012 | 13% | 14,232 |
| Connecticut | 4838 | 4864 | -1% | 4493 | 8% | 4,390 |
| District of Columbia | 1609 | 1581 | 2% | 1418 | 13% | 1,392 |
| Delaware | 26972 | 26306 | 3% | 25079 | 8% | 24,869 |
| Florida | 58550 | 59386 | -1% | 56675 | 3% | 52,891 |
| Georgia | 20013 | 20910 | -4% | 19778 | 1% | 19,189 |
| Hawaii | 2162 | 2265 | -5% | 2125 | 2% | 2,006 |
| Idaho | 3704 | 3959 | -6% | 3670 | 1% | 3,365 |
| Illinois | 14161 | 15130 | -6% | 12708 | 11% | 12,772 |
| Indiana | 7762 | 8141 | -5% | 7820 | -1% | 7,620 |
| Iowa | 3310 | 3598 | -8% | 3422 | -3% | 3,199 |
| Kansas | 3136 | 3457 | -9% | 2810 | 12% | 2,813 |
| Kentucky | 5099 | 4943 | 3% | 3569 | 43% | 4,398 |
| Louisiana | 5217 | 5650 | -8% | 5181 | 1% | 4,833 |
| Maine | 1225 | 1539 | -20% | 1410 | -13% | 1,362 |
| Maryland | 8102 | 8474 | -17% | 7611 | -38% | 6,395 |
| Massachusetts | 6165 | 6187 | 0% | 5995 | 3% | 5,651 |
| Michigan | 13134 | 13749 | -4% | 12904 | 2% | 11,304 |
| Minnesota | 6520 | 7261 | -10% | 6511 | 0% | 6,308 |
| Mississippi | 4060 | 4395 | -8% | 3925 | 3% | 3,550 |
| Missouri | 8998 | 9295 | -3% | 8503 | 6% | 8,116 |
| Montana | 5434 | 5668 | -4% | 4588 | 18% | 4,516 |
| Nebraska | 2067 | 2090 | -1% | 1974 | 5% | 1,817 |
| Nevada | 5380 | 5632 | -4% | 5316 | 1% | 5,175 |
| New Hampshire | 656 | 668 | -7% | 1693 | -63% | 1,264 |
| New Jersey | 14874 | 14943 | 0% | 14170 | 5% | 13,471 |
| New Mexico | 4603 | 4472 | -54% | 3698 | -42% | 3,486 |
| New York | 22906 | 22926 | 0% | 22279 | 3% | 21,330 |
| North Carolina | 17144 | 14335 | 20% | 14140 | 21% | 13,285 |
| North Dakota | 1297 | 1151 | 13% | 742 | 75% | 873 |
| Ohio | 13692 | 14250 | -4% | 12625 | 8% | 12,518 |
| Oklahoma | 5120 | 5470 | -6% | 3695 | 39% | 4,526 |
| Oregon | 5820 | 6031 | -3% | 5638 | 3% | 5,285 |
| Pennsylvania | 12682 | 12877 | -2% | 11776 | 8% | 11,459 |
| Rhode Island | 1261 | 1353 | -7% | 1122 | 12% | 1,111 |
| South Carolina | 8383 | 8178 | 3% | 7612 | 10% | 7,429 |
| South Dakota | 1446 | 1419 | 2% | 1302 | 11% | 1,201 |
| Tennessee | 6717 | 6639 | 1% | 6446 | 4% | 6,378 |
| Texas | 39197 | 39455 | -1% | 35865 | 9% | 35,722 |
| Utah | 2429 | 49 | -42% | 6579 | -50% | 5,345 |
| Vermont | 1031 | 1123 | -8% | 977 | 6% | 849 |
| Virginia | 11966 | 12086 | -1% | 10727 | 12% | 10,644 |
| Washington | 9790 | 9824 | 0% | 8752 | 12% | 9,486 |
| West Virginia | 1661 | 1786 | -7% | 1667 | 0% | 1,507 |
| Wisconsin | 5781 | 5986 | -3% | 5421 | 7% | 5,187 |
| Wyoming | 18944 | 15656 | 21% | 13814 | 37% | 15,036 |