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Business Formation Report

Business Formation Report | August 2025

August Business Health Analysis

-3%

Downward trend indicator

Month over Month Change

488,107

New US Business Formations

9%

Upward trend indicator

Year over Year Change

Key Takeaways

  • Business formations nationwide are up 9% since this time last year, despite 35 states seeing fewer formations month over month.
  • Growth was concentrated. Eight states (FL, TX, CA, DE, NY, GA, WY, and CO) made up almost half of all new formations in the country in August.
  • Wyoming hit 20,000 new formations—a milestone for the Business Formation Report.
  • Other than Wyoming, Montana has seen the most growth year to date (18%) outpacing more populous states like Delaware and Florida.
  • Business owners have continued to report optimism, with 44% saying they’d use more capital to hire talent.

Concentrated Growth Carries the Country

The month-to-month trend in business formations in 2025 has closely mirrored that of 2024, but with bigger numbers. While business formations were 9% higher this August, 35 states had fewer new businesses filed, demonstrating concentrated growth in certain high-performing states.

In fact, eight states accounted for almost half (49%) of new formations nationwide. These states were typical high performers—Florida, Texas, California, Delaware, New York, Georgia, Wyoming, and Colorado.

Wyoming Hit 20,000 New Formations in August

Wyoming hit a milestone in August: 20,000 new formations. This is the highest number of formations recorded since the start of the Business Formation Report, and marks a strong return from July’s -15% downturn. Thanks to its strong privacy protections, Wyoming is a popular state for LLC formation for both out-of-state and international owners. August’s sharp uptick is noteworthy and could be a sign of volatile trends going forward.

Just Behind Wyoming, Montana Sees Big Growth

Montana’s new business formations are up 18% year to date. This marks more growth than Texas, Florida, and Delaware—states that consistently show high formations. During the pandemic, Montana saw high rates of population growth as remote workers migrated to the picturesque state. While the population boom has leveled out and returned to a rate closer to that of pre-pandemic levels, Montana’s business growth continues to climb.

Business Owners Remain Optimistic, With Sights on Hiring

Business owners who we spoke with reported optimism at high levels, with 80% saying they felt “very optimistic” about the success of their businesses over the next 12 months. When asked what they would do if given access to more capital, a majority (44%) said they’d hire rather than pay off debt, save, or invest in automation.

Note: Data for Maryland is not yet available; the data represented here is a projection based on historical data and will be updated when state data becomes available.

Tap Map to Select Region

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New Business Formations

—%

Month over Month Change

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Year over Year Change

Location New Businesses New Businesses % Change New Businesses % Change 12 Month Avg.
Alabama 3900 3277 19% 4203 -7% 4,486
Alaska 954 929 3% 978 -2% 950
Arizona 11681 11393 3% 10592 10% 10,676
Arkansas 3400 3554 -4% 3047 12% 3,086
California 34873 38944 -10% 34947 0% 34,765
Colorado 14460 14709 -2% 13367 8% 13,710
Connecticut 4554 4781 -5% 4144 10% 4,367
District of Columbia 1236 1522 -19% 1422 -13% 1,211
Delaware 29451 28954 2% 23666 24% 24,036
Florida 58058 57008 2% 52967 10% 50,816
Georgia 20597 20610 0% 19254 7% 19,634
Hawaii 2235 2143 4% 2005 11% 2,103
Idaho 3646 3687 -1% 3402 7% 3,352
Illinois 12497 15056 -17% 12797 -2% 12,952
Indiana 7900 8177 -3% 7878 0% 7,743
Iowa 3164 3332 -5% 2830 12% 3,138
Kansas 3126 3171 -2% 2792 12% 2,750
Kentucky 6123 6490 -6% 4297 42% 5,162
Louisiana 5499 5319 3% 5077 8% 4,982
Maine 1284 1242 3% 1252 3% 1,272
Maryland 8380 5664 48% 7295 15% 7,461
Massachusetts 5872 5952 -1% 5205 13% 5,453
Michigan 12638 14140 -11% 9546 32% 11,393
Minnesota 6413 6357 1% 6743 -5% 6,444
Mississippi 4593 4783 -4% 4107 12% 3,571
Missouri 9125 9451 -3% 8263 10% 8,205
Montana 5669 6139 -8% 4539 25% 4,390
Nebraska 2166 1779 22% 1729 25% 1,812
Nevada 5147 5549 -7% 5007 3% 5,120
New Hampshire 683 1047 -35% 1639 -58% 1,812
New Jersey 14365 14835 -3% 13145 9% 13,314
New Mexico 3977 4507 -12% 3838 4% 3,605
New York 21507 22447 -4% 20237 6% 21,535
North Carolina 14188 14698 -3% 13775 3% 13,597
North Dakota 1049 1208 -13% 719 46% 904
Ohio 13482 14329 -6% 12345 9% 12,263
Oklahoma 5445 5547 -2% 3892 40% 4,746
Oregon 5510 5905 -7% 4958 11% 5,276
Pennsylvania 12300 12666 -3% 10959 12% 11,283
Rhode Island 1226 1251 -2% 984 25% 1,112
South Carolina 8312 8348 0% 7287 14% 7,472
South Dakota 1296 1456 -11% 912 42% 1,216
Tennessee 7051 7139 -1% 6356 11% 6,283
Texas 39779 40100 -1% 35597 12% 34,275
Utah 7501 6487 16% 6328 19% 6,017
Vermont 942 1031 -9% 941 0% 903
Virginia 11847 12147 -2% 10362 14% 10,629
Washington 9928 10059 -1% 8541 16% 8,825
West Virginia 1655 1606 3% 1502 10% 1,557
Wisconsin 5657 5738 -1% 5020 13% 5,319
Wyoming 20024 16577 21% 14369 39% 13,954

New Businesses

    About the Business Formation Report

    The Registered Agents Inc Business Formation Report offers a monthly snapshot of business formations 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 captures business owners at the paperwork stage. Every time someone forms a legal entity at the state level, we count it as one business formation. Our data is drawn from state-level secretary of state or equivalent agencies’ databases and collected here. 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 in States

    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

    Our report captures entrepreneurs at the “paperwork stage” of starting a business. This is one of the earliest stages of the business journey, indicating economic optimism and confidence. 

    How is this data different than the U.S. Census Bureau Data?

    The RAI Business Formation Report and the U.S. Census Bureau Business Formation Statistics both track business formation trends across the country. Each report captures the data at a different stage in the process.

    • The U.S. Census Bureau tracks businesses that apply for EINs and later go on to pay payroll taxes.
    • The RAI Business Formation Report tracks every entity formed at the state level.

    Because we use a different methodology, our data is not typically an exact match with the U.S. Census Bureau Business Statistics. However, we find that our numbers track closely with the trends observed in the U.S. Census Bureau data.

    A graphic depicting how the RAI data closely tracks the U.S. Census Bureau data.

    Our Report Captures Data at the Paperwork Stage

    The RAI Business Formation Report captures data earlier in the process, when people taking the initial step of filing Articles of Organization or Incorporation. Each time someone files formation paperwork with the state, we count the date that paperwork was approved as one business formation. This means that our report includes all entities, regardless of whether they become operational businesses or employers.

    The U.S. Census Bureau Captures Data at the Hiring Stage

    The U.S. Census Bureau Formation Statistics, on the other hand, captures data later in the process, when businesses are applying for EINs and eventually hiring employees. Because there is typically a lag between the time a business applies for an EIN and the time when it hires employees, the U.S. Census Bureau uses a statistical model to predict the number of businesses that go on to hire employees. This means that the U.S. Census Bureau does not include non-employer businesses, like single-member LLCs.

    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.

    formation icon

    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.

    Growing population

    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.

    Medal Star

    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 it becomes available.  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.

    Why do so many businesses file in Wyoming? 

    Many remote businesses choose to file in Wyoming because the state offers strong privacy protections. Wyoming is one of the few states in the country where LLC owners do not have to list their names and addresses on the public record (if they hire a registered agent).

    Why are so many businesses formed in Delaware? 

    Delaware is a popular state to start a business in for a few reasons. First, it has strong privacy protections, allowing owners to start a business without listing their personal information on the public record. Secondly, there’s no state corporate income tax on income earned out of state. This benefits businesses operating outside of Delaware, but incorporated within the state.

    Do you use statistical models to predict business formations?

    Only on rare occasions, which are noted in each report. If a state’s numbers are delayed, our analysts use historical data to project future numbers until up-to-date data is available.

    However, our report is overwhelmingly raw data, drawn directly from state entity formation paperwork.

    What does the report consider a business formation? 

    Every time someone files Articles of Organization or Incorporation with their state business division, we count that as one business formation.

    Unlike the US Census Bureau Business Statistics report, we do not differentiate between business entities that go on to hire employees and file payroll taxes. We count every entity formed, so our numbers include holding companies, single-member LLCs, and non-employer businesses.

    Questions? Get in Touch!

    Contact Us

    Published: September 9, 2025

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