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, as formations sped up nationwide for the first time in three months. Formations were up 4% from June 2025 and 10% compared to July 2025. This seasonal shift could mark the beginning of an upward trend as we head into fall.
Wyoming Sees Surprising Drop
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 Remain Confident
Despite the continued pressure of rising costs, 84% of business owners we spoke with reported feeling “very optimistic” about the upcoming year—an even higher number than in June. More than half (63%) of business owners said the health of their business was stronger now than it was this time last year, and 66% said they did not have to restructure their business in response to external pressures.
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!
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New Business Formations
—%
Month over Month Change
—%
Year over Year Change
| Location | New Businesses | New Businesses | % Change | New Businesses | % Change | 12 Month Avg. |
|---|---|---|---|---|---|---|
| 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 |