U.S. Business Formation Index (July 2026)
Where Americans are starting businesses, updated monthly from the Census Bureau's Business Formation Statistics: every state ranked by new business applications, growth, and applications per resident — with the full dataset free to download.
RegisteredAgentHub analysis of U.S. Census Bureau BFS data (through July 2026) and Vintage 2025 population estimates. Updates automatically each month. Licensed CC-BY — reuse with attribution.
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The national picture
"Business applications" are applications for an Employer Identification Number with business characteristics — the standard federal measure of formation activity. They are not completed LLC filings, and one business can generate more than one application; the trend and the state comparison are what the series is built for.
All 50 states + DC, ranked
Trailing 12 months through July 2026, against the same 12 months a year earlier. "Per 100k" divides by the state's 2025 population — the fairest way to compare Wyoming with California.
| # | State | Applications (12 mo) | YoY | Per 100k residents | Per-capita rank | High-propensity share |
|---|---|---|---|---|---|---|
| 1 | Florida | 709,158 | +13.9% | 3,023 | #3 | 28% |
| 2 | California | 603,909 | +13.6% | 1,535 | #30 | 36% |
| 3 | Texas | 587,453 | +18.3% | 1,853 | #13 | 26% |
| 4 | New York | 320,898 | +10.6% | 1,604 | #26 | 38% |
| 5 | Georgia | 277,705 | +15.3% | 2,457 | #6 | 25% |
| 6 | Illinois | 198,362 | +14.5% | 1,560 | #28 | 29% |
| 7 | North Carolina | 198,245 | +20.2% | 1,770 | #18 | 27% |
| 8 | Ohio | 183,897 | +22.7% | 1,545 | #29 | 24% |
| 9 | New Jersey | 173,163 | +11.9% | 1,814 | #16 | 27% |
| 10 | Pennsylvania | 167,561 | +13.1% | 1,283 | #44 | 28% |
| 11 | Michigan | 167,308 | +24.0% | 1,652 | #25 | 25% |
| 12 | Colorado | 163,722 | +18.7% | 2,723 | #5 | 26% |
| 13 | Arizona | 154,366 | +24.8% | 2,025 | #12 | 25% |
| 14 | Virginia | 149,096 | +16.7% | 1,679 | #23 | 26% |
| 15 | Washington | 117,106 | -19.6% | 1,464 | #34 | 28% |
| 16 | Missouri | 115,274 | +32.1% | 1,838 | #14 | 23% |
| 17 | Tennessee | 114,989 | +25.6% | 1,572 | #27 | 27% |
| 18 | Maryland | 108,517 | +12.7% | 1,732 | #20 | 28% |
| 19 | South Carolina | 102,396 | +18.3% | 1,838 | #15 | 25% |
| 20 | Indiana | 98,265 | +12.0% | 1,409 | #38 | 27% |
| 21 | Wyoming | 85,212 | +20.2% | 14,473 | #1 | 24% |
| 22 | Massachusetts | 84,897 | +12.0% | 1,187 | #47 | 35% |
| 23 | Utah | 83,442 | +27.7% | 2,358 | #7 | 25% |
| 24 | Louisiana | 81,556 | +22.4% | 1,766 | #19 | 24% |
| 25 | Wisconsin | 79,523 | +27.8% | 1,331 | #40 | 25% |
| 26 | Alabama | 77,265 | +24.0% | 1,488 | #31 | 24% |
| 27 | Minnesota | 76,661 | +13.1% | 1,315 | #41 | 27% |
| 28 | Kentucky | 76,291 | +38.5% | 1,656 | #24 | 23% |
| 29 | Oklahoma | 69,235 | +28.6% | 1,679 | #22 | 30% |
| 30 | Nevada | 69,034 | +9.8% | 2,103 | #9 | 26% |
| 31 | Oregon | 63,499 | -3.4% | 1,486 | #32 | 28% |
| 32 | Mississippi | 61,494 | +30.7% | 2,082 | #10 | 24% |
| 33 | Delaware | 61,046 | +3.0% | 5,759 | #2 | 35% |
| 34 | Connecticut | 54,517 | +15.6% | 1,478 | #33 | 27% |
| 35 | Arkansas | 45,187 | +23.9% | 1,451 | #35 | 27% |
| 36 | New Mexico | 43,699 | +21.2% | 2,056 | #11 | 26% |
| 37 | Kansas | 42,807 | +30.5% | 1,438 | #36 | 27% |
| 38 | Iowa | 37,729 | +15.2% | 1,165 | #48 | 27% |
| 39 | Idaho | 36,436 | +13.6% | 1,795 | #17 | 29% |
| 40 | Montana | 32,253 | +15.5% | 2,818 | #4 | 27% |
| 41 | Nebraska | 24,261 | +17.2% | 1,202 | #46 | 28% |
| 42 | New Hampshire | 19,691 | +23.1% | 1,391 | #39 | 28% |
| 43 | Hawaii | 18,591 | -0.7% | 1,298 | #42 | 29% |
| 44 | West Virginia | 18,327 | +18.3% | 1,038 | #51 | 30% |
| 45 | District of Columbia | 15,780 | +10.6% | 2,275 | #8 | 27% |
| 46 | Maine | 15,057 | +5.6% | 1,064 | #50 | 33% |
| 47 | South Dakota | 13,221 | +14.9% | 1,414 | #37 | 27% |
| 48 | Alaska | 12,703 | +32.3% | 1,723 | #21 | 25% |
| 49 | Rhode Island | 12,592 | +13.0% | 1,130 | #49 | 31% |
| 50 | North Dakota | 9,691 | +13.3% | 1,212 | #45 | 31% |
| 51 | Vermont | 8,303 | +13.4% | 1,288 | #43 | 31% |
Fastest-growing states
- Kentucky — +38.5% (76,291 applications)
- Alaska — +32.3% (12,703 applications)
- Missouri — +32.1% (115,274 applications)
- Mississippi — +30.7% (61,494 applications)
- Kansas — +30.5% (42,807 applications)
Biggest declines
- Washington — -19.6% (117,106 applications)
- Oregon — -3.4% (63,499 applications)
- Hawaii — -0.7% (18,591 applications)
Findings worth quoting
Wyoming out-forms West Virginia 13.9-to-1 per resident. Wyoming generated 14,473 business applications per 100,000 residents over the last twelve months against West Virginia's 1,038 — the widest per-capita gap in the country.
March is America's busiest month for starting a business. Averaged over the last five complete years, March accounts for 10.3% of the year's applications — 59% more than December, the quietest month.
Formation activity remains far above pre-pandemic levels. The last twelve months produced 6,141,390 applications, +76% above 2019's full-year total of 3,498,990 — the post-2020 surge in new-business creation has not receded to the old baseline.
Roughly 28% of applications are 'high-propensity' — flagged by the Census as likely to become employer businesses. The rest includes solo ventures, holding entities and gig-economy EINs, which is one reason application counts exceed state formation filings.
Methodology & sources
Formation counts are the Census Bureau's Business Formation Statistics, series BA_BA (all business applications) and BA_HBA (high-propensity applications), NAICS total, not seasonally adjusted — every comparison on this page is year-over-year against the same months, which controls seasonality without model adjustment. Population is the Census Bureau's Vintage 2025 estimate (POPESTIMATE2025). Trailing-12-month windows end at July 2026, the latest month published. The page regenerates automatically when the Census releases each new month; nothing is hand-entered.
"High-propensity" applications are those the Census flags as having characteristics associated with becoming employer businesses — a rough quality filter that separates likely-real ventures from EINs created for other purposes.
Everything here is free to reuse under CC-BY 4.0 with attribution to RegisteredAgentHub. The CSV carries every figure in the table above. Questions or corrections: hello@registeredagenthub.com.
Frequently asked questions
How many new businesses are being started in the U.S.?
Over the twelve months through July 2026, Americans filed 6,141,390 new business applications with the IRS — +15.9% on the prior twelve months, and +76% above the last pre-COVID year. In July 2026 alone there were 634,735.
Which state has the most new business formations?
By raw volume, Florida — 709,158 applications in the last twelve months. Adjusted for population, Wyoming leads with 14,473 applications per 100,000 residents.
Which states are growing fastest for new businesses?
Over the last twelve months versus the prior twelve: Kentucky (+38.5%), Alaska (+32.3%), Missouri (+32.1%), Mississippi (+30.7%), Kansas (+30.5%).
What months do most people start businesses?
March, consistently — it averages 10.3% of the year's applications across the last five complete years, about 59% more than December, the quietest month.
What exactly does this index measure?
Census Bureau Business Formation Statistics: applications for an Employer Identification Number that have business characteristics (series BA_BA), plus the subset the Census flags as high-propensity (BA_HBA). It is the standard federal measure of formation activity — but it counts applications, not completed LLC or corporation filings, so state-registry numbers will differ. Comparisons here are year-over-year on unadjusted data, which controls for seasonality.
Can I reuse these numbers?
Yes — everything on this page and the downloadable CSV is licensed CC-BY 4.0. Cite 'RegisteredAgentHub analysis of U.S. Census Bureau Business Formation Statistics' and link to this page so readers can find the live version.
Forming one of these businesses yourself? Start with the LLC cost calculator (every state's verified fees), the annual report deadline calendar, or your state's guide via the state-by-state hub.