-6%
Month over Month Change
468,462
New US Business Formations
9%
Year over Year Change
Key Takeaways
In a first look at new business formation trends in October 2025, here’s what we’re seeing.
- Amid the government shutdown, DC businesses were on the rise in October.
- New businesses nationwide fell about 6% from September, with 37 states seeing declines in October.
- Montana business formations were up 158% compared to October of 2024.
- After a brief September slump, Wyoming rebounded, surpassing 20,000 formations for the second time this year.
October 2025 Continues Split From 2024’s Trend
Until early fall, 2025’s business formation pace tracked 2024’s pattern, only at a higher level. September marked the first real break: filings climbed rather than dipping as they did this time last year. In October, the split continued—October 2024 saw formations rise, but in 2025 they’re down by 6%.
Amid Shutdown, DC Businesses are on the Rise
In the first data on new business formations available since the start of the government shutdown, new business new business formations in the District of Columbia are on the rise. More than 1,400 new companies were formed in DC in October, up 13% from September.
Montana and Wyoming Show Big Gains in 2025
Business formations in Montana continue to rise dramatically—new businesses are up 158% compared to this time last year, marking the most growth by far out of any state. The Pandemic brought a population boom to Montana. While the high rates of population growth have since leveled out, Montana’s business growth continues to climb.
Business formations in Wyoming have zigzagged since July’s unexpected drop. August showed a sharp rebound, topping 20,000 filings for the first time in the history of this report, only for September to slump again. October offers little respite from the up-and-down, with formations again pushing past the 20,000 mark. Wyoming’s strong privacy protections and business-friendly regulatory environment make it a popular choice for both out-of-state and international business owners. Volatile trends in the state could signal uncertainty beyond the Cowboy State.
Nationwide Formation Metrics
468462
New Business Formations
-5.7%
Month over Month Change
9%
Year over Year Change
|
Location
|
New Businesses
Oct 2025
|
New Businesses
Sept 2025
|
% Change
|
New Businesses
Oct 2024
|
% Change
Oct 2024 v. Oct 2025
|
12 Month Avg.
Nov 2024-Oct 2025
|
|---|---|---|---|---|---|---|
| Alabama | 3323 | 2984 | 11% | 2918 | 14% | 3432 |
| Alaska | 1242 | 1066 | 17% | 1021 | 22% | 1006 |
| Arizona | 9070 | 13936 | -35% | 9626 | -6% | 11239 |
| Arkansas | 3368 | 3495 | -4% | 2917 | -13% | 3112 |
| California | 36017 | 36472 | -1% | 33573 | 7% | 36736 |
| Colorado | 14989 | 14702 | 2% | 14208 | 5% | 15222 |
| Connecticut | 5162 | 4665 | 11% | 4273 | 21% | 4588 |
| District of Columbia | 1579 | 1248 | 27% | 1386 | 14% | 1404 |
| Delaware | 26411 | 29431 | -10% | 25750 | 3% | 26688 |
| Florida | 55850 | 59071 | -5% | 47722 | 17% | 55964 |
| Georgia | 20635 | 19745 | 5% | 18459 | 12% | 19976 |
| Hawaii | 1064 | 1710 | -41% | 2067 | -49% | 2063 |
| Idaho | 3287 | 3536 | -7% | 3166 | 4% | 3542 |
| Illinois | 14060 | 13487 | 4% | 12273 | 15% | 13206 |
| Indiana | 8248 | 7774 | 6% | 7570 | 9% | 7925 |
| Iowa | 3165 | 3490 | -9% | 3423 | -8% | 3247 |
| Kansas | 2743 | 3237 | -15% | 2728 | 1% | 3000 |
| Kentucky | 6282 | 6130 | 2% | 4213 | 49% | 5427 |
| Louisiana | 4752 | 4810 | -1% | 4742 | 0% | 4880 |
| Maine | 1179 | 1379 | -15% | 1341 | -12% | 1397 |
| Maryland | 6786 | 7491 | -9% | 5178 | 31% | 7281 |
| Massachusetts | 5997 | 5990 | 0% | 5520 | 9% | 5831 |
| Michigan | 11249 | 12298 | -9% | 9729 | 16% | 12075 |
| Minnesota | 5643 | 6350 | -11% | 5883 | -4% | 6464 |
| Mississippi | 3981 | 4459 | -11% | 3707 | 7% | 4181 |
| Missouri | 7058 | 8977 | -21% | 8082 | -13% | 8687 |
| Montana | 6300 | 5865 | 7% | 2445 | 158% | 5363 |
| Nebraska | 1631 | 1854 | -12% | 1854 | -12% | 1873 |
| Nevada | 6166 | 5329 | 16% | 5061 | 22% | 5275 |
| New Hampshire | 652 | 622 | 5% | 1579 | -59% | 862 |
| New Jersey | 13996 | 15523 | -10% | 13419 | 4% | 14135 |
| New Mexico | 3619 | 4017 | -10% | 3477 | 0% | 3913 |
| New York | 22293 | 22109 | 1% | 20370 | 9% | 21756 |
| North Carolina | 14010 | 15352 | -9% | 13237 | 6% | 13646 |
| North Dakota | 726 | 1008 | -28% | 635 | 14% | 1054 |
| Ohio | 13854 | 13429 | 3% | 12134 | 14% | 13251 |
| Oklahoma | 5764 | 5442 | 6% | 5029 | 15% | 5067 |
| Oregon | 4928 | 6014 | -18% | 5342 | -8% | 5581 |
| Pennsylvania | 11366 | 12421 | -8% | 11357 | 0% | 12029 |
| Rhode Island | 1212 | 1340 | -10% | 1050 | 15% | 1226 |
| South Carolina | 8164 | 7960 | 3% | 7194 | 13% | 7928 |
| South Dakota | 1259 | 1424 | -12% | 1225 | 3% | 1343 |
| Tennessee | 5948 | 6721 | -12% | 5955 | 0% | 6451 |
| Texas | 36272 | 38541 | -6% | 35319 | 3% | 37212 |
| Utah | 4496 | 6081 | -26% | 4432 | 1% | 5914 |
| Vermont | 995 | 1001 | -1% | 947 | 5% | 908 |
| Virginia | 11232 | 11689 | -4% | 10177 | 10% | 11284 |
| Washington | 8408 | 9942 | -15% | 8343 | 1% | 9385 |
| West Virginia | 1283 | 1647 | -22% | 1479 | -13% | 1579 |
| Wisconsin | 6019 | 5425 | 11% | 5073 | 19% | 5457 |
| Wyoming | 20025 | 17756 | 13% | 11333 | 77% | 17566 |