Business Formation Report | August 2026
“A lot of people are looking at the economy and deciding they need more control over their financial future.” – Molly Cavanah, VP Revenue Growth & Data
“The most striking thing about 2026 isn’t just how many businesses are being created. It’s how consistently people are creating them. We’ve had eight straight months of year-over-year growth, with total formations up 16% from last year. The economy has given people plenty of reasons to hesitate. Instead, they’re moving faster.”
Cite this Report
Registered Agents Inc. (2026). Business Formation Report | August 2026. Retrieved from https://www.registeredagentsinc.com/business-formation-report/
Key Takeaways
August formations came in at 564,065, up 11% from 2025 and the strongest August on record, far surpassing the previous high of 511,604 set back in 2023. Emblematic of a record-setting year, August’s numbers represent the best late-summer showing yet.
Continuing the theme 2026 has displayed, growth remained widespread this month. 44 of 51 jurisdictions posted year-over-year gains, increasing the year-to-date total to 4.73 million formations, up 16% from the same point in 2025. As the summer of 2026 comes to a close, the data shows that this year defied the trend of the typical May-July slump that’s normally expected, with the June-August run of this year landing 13% ahead of the same time-frame in 2025.
Consistent business growth seems to diverge from the broader job market. According to the U.S. Department of Labor, wage growth in August remained sluggish at 3.1%, the lowest since May 2021. ADP’s National Employment Report found private employers added just 38,000 jobs nationally in August, the slowest pace of hiring since January.
This points back to a familiar pattern Registered Agents Inc has tracked all year: as the economy tightens and traditional job creation cools, more people are choosing to build their own financial stability rather than waiting for the job market to do it for them.
Legislative shielding continues to avert “DExit” worries.
Delaware posted 32,893 formations in August, up 11% from 2025 and one of 33 states that posted double digit year-over-year growth. At the same time, the state is up 9% from July. This run marks a record turnaround for the state, which saw a dip in formations between August of 2022 and 2024.
After that slip, the state saw an aggressive rebound that began in 2025 and continues in 2026. The timing of said rebound lines up with the passing of Senate Bill 21, a 2025 law that established protections against lawsuits over deals involving executives and assuaged fears of a slipping business-friendly environment.
A five-year slide catches up to Texas.
Despite consistently being one of the largest volume contributors to new business formations nationwide, and being well-known for its business-forward policies, Texas has continued to see formations decline in late summer. July to August formations have seen swift declines in recent years: from +19% in 2022, to +13% in 2023, to +7% in 2024, before dipping down to -0.9% last year and -5% this year.
This latest, relatively steep drop in formations coincided with a shedding of jobs in the oil and gas sector. According to the Texas Independent Producers & Royalty Owners Association (TIPRO), the industry lost 1,200 jobs in July, the year’s largest decline. Still, the state ranks as the second-highest in monthly formation count for August and remains 16% ahead of last year in year-to-date formations.
Georgia sees growth among strong business investment.
Georgia posted 23,983 new business formations in August, up 15% year-over-year and 11% from July, its best August since 2022. This record in new business coincides with another high for the state: business investment tied to economic development.
In a recent press release, Governor Brian Kemp announced a record $35.2 billion in investment from companies expanding or opening new locations, with manufacturing accounting for 67% of the resulting jobs. Georgia’s new business activity outpaces national formation trends while its job growth stands in sharp contrast to the slugging hiring picture ADP tracked nationally this month.
Whitney Ward
Public Relations DirectorState Leaderboard
Top performing jurisdictions by monthly filing total.
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State Rankings
Detailed formation volume for 51 jurisdictions.
Business Owner Survey
Insights into how small business owners view today’s economic climate
How would you describe the overall health of your business compared to this time last year?
How optimistic are you about your business's success over the next 12 months?
What is the most important change you're making to capture more business during the upcoming holiday season?
If seasonal demand exceeds your expectations, how prepared is your business to handle the increase?
What has changed most about your customers' behavior during 2026?
Who is Registered Agents Inc?
Registered Agents Inc is an independently owned technology driven company and the nation’s largest provider of registered agent services, compliance solutions and full identity services. Founded in 2008, RAI was built on a simple premise: starting a business should be accessible, affordable, and straight forward. Nearly two decades later, that mission is reflected in the numbers. RAI operates in all 50 states and Washington, D.C., helping hundreds of thousands of people every year start their own business and establish a legitimate, professional presence online and in their communities.
We believe starting a business changes lives, and the ripple effect of a single new business can transform an entire community. States that make starting a business easier and faster see stronger communities and more economic growth. Our data helps paint an accurate picture of the business formation environment across the U.S., and enables business owners and state legislators to make smart decisions for their future.
About the Business Formation Report:
Because we file more business formations than any other provider in the U.S., our systems regularly track monthly data in every state. (ADP knows jobs - We know small businesses.)
In our New Business Formations Report, we make that data free to economists, journalists, policymakers, and entrepreneurs every month. We know small businesses power economic growth, and better information leads to better policy decisions that promote opportunity and independence for everyone.
Molly Cavanah
VP, Revenue Growth & Data
Whitney Ward
Public Relations Director
Kris Vaquez
Writer
Ellie Coback
Data Analyst
Inside the Business Formation Report
The Registered Agents Inc (RAI) New Business Formation Report measures business formation activity by tracking new entity filings at the state level across all 50 states and the District of Columbia. Each time a business is formally created through a filing with a secretary of state or equivalent agency, it is counted as one new formation in our dataset. Because state-level reporting timelines can vary, data is based on the most recent figures available at the time of publication and may be updated as states revise or finalize their counts.
What’s in the Business Formation Report?
- Monthly Snapshot of Business Formations Nationwide
- State-by-State Breakdown of Business Formations
- Month Over Month & Year Over Year Changes
- Client Sentiment Data – How Our Clients Feel About Their Businesses
Where does the data come from?
Business formation data is collected from the Secretary of State or equivalent agency of each state, plus Washington, D.C., as it becomes available on a monthly basis. This approach captures the full universe of new business entities, regardless of whether those businesses go on to apply for an Employer Identification Number (EIN) or hire employees.
• The U.S. Census Bureau only tracks businesses that apply for EINs and later go on to pay payroll taxes.
• Registered Agents Inc tracks every entity formed at the state level.
The RAI Business Formation Report counts all new business entities. Each time someone takes the step to file formation paperwork with their state’s secretary of state or equivalent agency, our report counts that as one formation. This is regardless of whether or not the business goes on to apply for an EIN and pay payroll taxes.
Because the U.S. Census Bureau only tracks EIN filings, the statistics the agency reports do not capture a complete picture of business formations in the country. A large portion of new businesses never obtain an EIN or go on to hire employees, and these businesses are not counted by the U.S. Census Bureau. As a result, Census data does not fully reflect total business formation activity. By contrast, RAI data provides a more comprehensive and immediate view of entrepreneurial activity in the United States.
Frequently Asked Questions
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.
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.
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.
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.
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.
Yes! You can access monthly Business Formation Reports going back to September of 2024. Check out our Newsroom.
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).
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.
Have questions about our findings?
Reach out for media inquiries, data clarifications, or general questions regarding this report.