Business Formation Report | September 2026
“People are starting businesses at a pace we’ve never seen before, and it’s happening against a backdrop of economic pressures that aren’t letting up.” – Molly Cavanah, VP Revenue Growth & Data
“September was another record-breaker, and at this point, the pattern is hard to ignore. Every single month of 2026 has outpaced the previous year.
For many, starting a business is becoming an increasingly important way for Americans to regain control over their income when the usual options don't cut it anymore.”
Cite this Report
Registered Agents Inc. (2026). Business Formation Report | September 2026. Retrieved from https://www.registeredagentsinc.com/business-formation-report/
Key Takeaways
This September was the strongest on record, with 562,579 new business formations nationwide, surpassing the previous high of 494,646 posted in September of 2025.
While growth remained widespread, as it has for the majority of this year, a handful of states did a disproportionate share of the heavy lifting. Missouri and Texas alone accounted for close to 11% of the national year-over-year increase each. Together with Wyoming and Colorado, these four states made up more than 40% of the country’s year-over-year growth this month.
September also extends 2026’s year-to-date record run: 5.31 million businesses have been formed so far this year, up 16% from the same point last year. Month-over-month growth (0.3%) remained relatively flat, holding steady at an elevated level. 2026 continues to beat 2025 by nearly every metric, with old ceilings beginning to look like the new norm.
Missouri’s big tax moves line up with September’s best growth story
Missouri posted the strongest year-over-year growth of any state this month. Formations were up a monumental 83% from a year earlier, and year-to-date formation totals sit 66% above last year. The timing lines up well with House Bill 594, a historic piece of legislation which allows individuals to subtract 100% of capital gains on their taxable state income. Owners of pass-through entities (most LLCs, partnerships, and S corps) who make a profit from selling their business or ownership stake get to keep that gain tax-free at the state level, rewarding those who build something.
In recent years, the state has also incrementally lowered the state income tax rate, capped minimum wage at $15/hour and eliminated mandatory paid sick leave. While somewhat controversial, the changes enable business owners to keep more of their incoming profit.
Three Mountain West states punch above their weight
Idaho, Wyoming and Colorado combined to drive 21% of the country’s total year-over-year formation increase in September, even though no regional factor ties them together.
Idaho’s HB40, which decreased the corporate and individual income tax rates from 5.695% to 5.3% at the state level, might represent a policy driver behind its 46% year-over-year jump. Wyoming’s evergreen pitch (no corporate or personal income tax, and strong privacy protections) seems as appealing as ever, and may be partly to thank for its 37% increase. Colorado rounded out the trio with a 42% year-over-year increase.
Job and formation growth move in tandem
Texas formations rose 19% year-over-year in September. This is an impressive statistic for a state that regularly sits in the top 3 for total formations, and where large percentage swings represent an substantial number of new businesses.
An even more interesting part of the story is the fact that business formations and job growth were both above the national average this month. According to the Texas Real Estate Research Center at Texas A&M, in its September 2026 Texas Economic Outlook, state employment grew 1.3% year-over-year, more than six times the 0.2% national rate. This is a break from the norm, where formations and job growth tend to move in opposite directions.
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 has been the most significant change to your business relationships as a result of increased Middle East instability?
What are you doing before the end of 2026 to generate business during the first quarter of 2027?
How are you approaching financial commitments for the first quarter of 2027?
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.