Industry & Market Data
Business Formation Statistics by State (2026)
Americans filed about 6.2M business applications in the last 12 months, and 28% were high-propensity (likely to hire). We ranked all 50 states plus D.C. on new business applications, density, and growth using the latest Census Business Formation Statistics. Florida files the most.
6.2M
Applications (12 mo)
28%
High-propensity
Florida
Most applications
51
States + DC
Key findings
- Americans filed about 6.2M business applications in the last 12 months; 28% were high-propensity (likely to become employers).
- Florida files the most applications (712,944), ahead of California and Texas.
- On a per-capita basis (excluding the Wyoming and Delaware incorporation havens), Florida leads at 305 applications per 10,000 residents.
- Fastest year-over-year growth: Kentucky (+42.1%), followed by Alaska and Mississippi.
- Business formation is a read on local economic vitality: where new businesses are starting, there are new customers, new competitors, and a growing market.
Business applications, mapped
Business applications in the last 12 months by state. Darker means more. Hover a state for its count.
Business formation by state
All 50 states plus D.C., with applications, density, growth, and high-propensity share. Search or sort any column.
| 1 | Florida | 712,944 | 305 | +13.3% | 28.2% |
| 2 | California | 620,096 | 157.3 | +16.5% | 35.3% |
| 3 | Texas | 592,912 | 189.5 | +18.5% | 26% |
| 4 | New York | 323,646 | 162.9 | +10.6% | 37.4% |
| 5 | Georgia | 282,188 | 252.4 | +16.2% | 25% |
| 6 | Illinois | 200,519 | 157.8 | +15% | 28.8% |
| 7 | North Carolina | 199,629 | 180.7 | +18.3% | 26.9% |
| 8 | Ohio | 186,907 | 157.3 | +23.5% | 23.7% |
| 9 | New Jersey | 176,767 | 186.1 | +13.5% | 27% |
| 10 | Michigan | 171,432 | 169.1 | +24.1% | 24.4% |
| 11 | Pennsylvania | 169,991 | 130 | +13.2% | 27.7% |
| 12 | Colorado | 167,034 | 280.4 | +19.6% | 25.8% |
| 13 | Arizona | 156,534 | 206.4 | +26.2% | 24.4% |
| 14 | Virginia | 151,498 | 171.9 | +16.2% | 26% |
| 15 | Washington | 118,859 | 149.4 | -18.7% | 27.8% |
| 16 | Missouri | 117,923 | 188.8 | +31.1% | 23.1% |
| 17 | Tennessee | 116,688 | 161.4 | +24.3% | 26.8% |
| 18 | Maryland | 109,608 | 175 | +12.3% | 27.6% |
| 19 | South Carolina | 102,617 | 187.3 | +15.2% | 24.7% |
| 20 | Indiana | 99,285 | 143.4 | +13.6% | 27.3% |
| 21 | Wyoming | 86,094 | 1,465.1 | +19.1% | 24% |
| 22 | Massachusetts | 85,923 | 120.4 | +11.6% | 34.6% |
| 23 | Utah | 85,305 | 243.5 | +29.1% | 24.8% |
| 24 | Louisiana | 83,560 | 181.7 | +24.9% | 23.7% |
| 25 | Alabama | 80,554 | 156.2 | +27.6% | 23.5% |
| 26 | Wisconsin | 80,516 | 135.1 | +26.9% | 25.1% |
| 27 | Minnesota | 79,179 | 136.7 | +15.2% | 26.5% |
| 28 | Kentucky | 78,651 | 171.4 | +42.1% | 22.1% |
| 29 | Oklahoma | 70,359 | 171.8 | +29.4% | 29.6% |
| 30 | Nevada | 69,824 | 213.7 | +9.8% | 26% |
| 31 | Oregon | 63,853 | 149.5 | -4.1% | 28.4% |
| 32 | Mississippi | 63,371 | 215.3 | +33% | 23.3% |
| 33 | Delaware | 61,611 | 585.7 | +2.9% | 34.7% |
| 34 | Connecticut | 55,456 | 150.9 | +16.6% | 27.2% |
| 35 | Arkansas | 45,928 | 148.7 | +25% | 26.8% |
| 36 | New Mexico | 44,966 | 211.1 | +21.9% | 26.4% |
| 37 | Kansas | 43,981 | 148.1 | +30.7% | 26.7% |
| 38 | Iowa | 38,148 | 117.7 | +14.6% | 26.8% |
| 39 | Idaho | 37,338 | 186.5 | +16.1% | 29% |
| 40 | Montana | 32,928 | 289.5 | +15.6% | 26.6% |
| 41 | Nebraska | 24,552 | 122.4 | +15.5% | 28.1% |
| 42 | New Hampshire | 19,958 | 141.6 | +24.4% | 28% |
| 43 | West Virginia | 18,823 | 106.3 | +21% | 28.8% |
| 44 | Hawaii | 18,744 | 129.6 | -1.9% | 29.3% |
| 45 | District of Columbia | 15,809 | 225.1 | +10.1% | 27.6% |
| 46 | Maine | 15,477 | 110.2 | +9.6% | 33.2% |
| 47 | Alaska | 13,513 | 182.6 | +39.4% | 24.2% |
| 48 | South Dakota | 13,458 | 145.5 | +15.3% | 27.6% |
| 49 | Rhode Island | 12,774 | 114.8 | +12.9% | 31.1% |
| 50 | North Dakota | 9,877 | 124 | +14.3% | 30.4% |
| 51 | Vermont | 8,465 | 130.5 | +16.8% | 30.9% |
Applications (12 mo)
712,944
Rank #1 of 51
Per 10k residents
305
Rank #3 of 51
Year-over-year change
13%
Rank #39 of 51
High-propensity share
28%
Rank #15 of 51
Top 15 states by total applications
Highest per capita (excluding incorporation havens)
Applications per 10,000 residents. Wyoming and Delaware are excluded here: their LLC-friendly laws attract huge volumes of out-of-state filings that inflate per-capita numbers without reflecting local activity.
What this means
Business-application data is one of the freshest reads on the economy, updated monthly. For a service-business owner it answers a practical question: how alive is this market? States with high and rising formation have more new commercial customers to win and a faster-churning competitive field.
The flip side is competition. Easy-to-start trades in fast-forming states fill up quickly, so the operators who win are the ones who get found first and respond fastest. That is where booking, dispatch, and review automation earn their keep.
Methodology
Business applications = total applications for an Employer Identification Number (all NAICS, seasonally adjusted) summed over the most recent 12 months, per state, from the U.S. Census Bureau Business Formation Statistics served via FRED. High-propensity applications are those statistically likely to become employer businesses. Density is applications per 10,000 residents using 2024 ACS population. Covers the 50 states plus D.C.
High-propensity applications are a Census subset statistically likely to become employer businesses. Caveats: an application is an intent to start a business, not a guarantee one operates. Wyoming and Delaware are incorporation havens (out-of-state filings inflate their per-capita numbers); we keep them in the table but exclude them from the per-capita chart.
Source
U.S. Census Bureau Business Formation Statistics (via FRED, St. Louis Fed).
Programs: Census Business Formation Statistics, FRED (St. Louis Fed).
Frequently asked questions
How many new businesses are formed in the U.S. each year?+
About 6.2M business applications were filed in the most recent 12 months across the 50 states plus D.C. Roughly 28% are high-propensity applications, the ones statistically likely to become employer businesses.
Which state has the most new business applications?+
Florida leads with 712,944 applications in the last 12 months, followed by California (620,096) and Texas (592,912). The largest states by population dominate raw counts.
Why do Wyoming and Delaware rank so high per capita?+
Both are incorporation havens: their business-friendly LLC and corporate laws attract huge numbers of out-of-state filings, so their applications-per-resident are inflated and do not reflect local economic activity. We exclude them from the per-capita chart for that reason, but they remain in the full table.
What is a high-propensity business application?+
The Census Bureau flags applications that are statistically likely to become businesses with employees (for example, applications from corporations, those planning to hire, or in certain industries). It is a better signal of "serious" business formation than raw application counts.
Why does business formation matter for service businesses?+
New business formation is a proxy for local economic vitality and churn: where lots of new businesses are starting, there are new commercial customers, new competitors, and a growing local economy. For a home-service owner it is a read on how active a market is.
Where does this data come from?+
U.S. Census Bureau Business Formation Statistics, accessed via FRED (Federal Reserve Bank of St. Louis). Figures are the trailing 12 months of seasonally adjusted monthly business applications. See the methodology below.
Cite this study
Free to reference with a link back. Please credit Smarfle as the source.
Ihor Lavrenenko (2026). Business Formation Statistics by State. Smarfle. https://www.smarfle.com/small-business-statistics/business-formation-statistics
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