Where Are New Businesses Forming (A State-by-State Look)
Census Bureau Business Formation Statistics provide a current, state-by-state measure of qualifying EIN applications. That is an early activity signal—not an LLC filing count or proof that a business opened [1].
Quick Summary
- Census counts qualifying EIN applications; it does not identify LLC registrations or confirm that an application became an operating business.
- The state table covers all 50 states for 2025; January–August 2026 applications were 13.6% above the same 2025 period.
- Applications per 10,000 residents are a scale adjustment, not a measure of resident startup odds.
- Use state registry records for LLC-only filing counts and check where the company actually operates.
2025 Business Applications by State
The table covers January through December 2025, the latest complete calendar year in the data available for this update. States are sorted by total application count, highest first.
The last column divides each state’s 2025 applications by its July 1, 2025 resident population estimates, then multiplies by 10,000 [2]. It is a scale comparison, not the share of residents who started a business.
| State (ranked by 2025 count) | 2025 applications | Change from 2024 | Applications per 10,000 residents |
|---|---|---|---|
| Florida | 647,734 | +2.1% | 276.1 |
| California | 553,931 | +7.1% | 140.8 |
| Texas | 544,146 | +10.8% | 171.6 |
| New York | 301,047 | +3.1% | 150.5 |
| Georgia | 254,582 | +4.7% | 225.2 |
| Illinois | 189,879 | +10.8% | 149.3 |
| North Carolina | 182,653 | +11.7% | 163.1 |
| Ohio | 168,207 | +15.5% | 141.3 |
| Pennsylvania | 161,275 | +9.4% | 123.5 |
| New Jersey | 161,138 | +5.3% | 168.8 |
| Michigan | 152,060 | +12.8% | 150.1 |
| Colorado | 143,807 | +10.0% | 239.2 |
| Washington | 142,196 | +28.6% | 177.7 |
| Virginia | 138,762 | +9.8% | 156.3 |
| Arizona | 135,679 | +11.9% | 178.0 |
| Tennessee | 103,220 | +14.3% | 141.1 |
| Missouri | 101,393 | +19.2% | 161.7 |
| Maryland | 101,253 | +6.1% | 161.6 |
| South Carolina | 94,104 | +9.0% | 168.9 |
| Indiana | 89,768 | -0.7% | 128.7 |
| Massachusetts | 79,139 | +4.9% | 110.6 |
| Wyoming | 79,023 | +22.6% | 1,342.2 |
| Louisiana | 75,620 | +10.4% | 163.7 |
| Minnesota | 73,825 | +9.1% | 126.6 |
| Utah | 72,787 | +6.3% | 205.7 |
| Wisconsin | 71,475 | +15.1% | 119.7 |
| Alabama | 70,466 | +7.9% | 135.7 |
| Nevada | 64,781 | +3.4% | 197.4 |
| Kentucky | 64,042 | +18.3% | 139.0 |
| Oregon | 62,652 | +4.7% | 146.6 |
| Delaware | 60,132 | +1.1% | 567.3 |
| Oklahoma | 56,855 | +6.0% | 137.9 |
| Mississippi | 52,467 | +12.1% | 177.6 |
| Connecticut | 49,834 | +6.6% | 135.1 |
| New Mexico | 40,758 | +17.5% | 191.8 |
| Arkansas | 39,512 | +8.7% | 126.9 |
| Kansas | 37,534 | +17.4% | 126.1 |
| Iowa | 35,038 | +9.1% | 108.2 |
| Idaho | 33,267 | +6.8% | 163.9 |
| Montana | 29,887 | +10.9% | 261.1 |
| Nebraska | 22,876 | +9.7% | 113.4 |
| Hawaii | 19,558 | +8.6% | 136.5 |
| New Hampshire | 17,046 | +6.7% | 120.4 |
| West Virginia | 16,387 | +8.0% | 92.8 |
| Maine | 14,186 | +0.5% | 100.3 |
| South Dakota | 12,092 | +5.2% | 129.3 |
| Rhode Island | 11,800 | +5.1% | 105.9 |
| Alaska | 10,531 | +15.3% | 142.8 |
| North Dakota | 8,912 | +5.4% | 111.5 |
| Vermont | 7,575 | +3.8% | 117.5 |
Where Applications Were Concentrated
By total count in 2025, the leaders were Florida (647,734), California (553,931), and Texas (544,146). By applications per 10,000 residents, the highest figures were Wyoming (1,342.2), Delaware (567.3), and Florida (276.1).
The largest year-over-year increases in 2025 were Washington (+28.6%), Wyoming (+22.6%), and Missouri (+19.2%). A high count, rate, or increase does not show that a state policy caused the difference.
From January through August 2026, the 50 states recorded 4,334,334 not-seasonally-adjusted applications, 13.6% more than during the same 2025 months. Florida (514,279), California (439,856), and Texas (403,187) had the highest counts. Alaska (+38.4%), Oklahoma (+33.6%), and Kentucky (+33.5%) had the largest percentage gains, although their counts remained below those of the largest states.
What Census Counts as a Business Application
The Census Bureau’s Business Applications series counts qualifying applications for an Employer Identification Number submitted on using IRS Form SS-4. It includes different business types, not only LLCs [3].
An application does not confirm that an operating business opened. Census identifies employer-business formations when an EIN first records payroll-tax liability. Projected formations are estimates for application cohorts, not final counts of businesses launched in a given month.
What the Ranking Does—and Does Not—Show
The table shows where applications are recorded, not why someone filed there. It cannot prove that taxes, filing fees, privacy rules, or a state’s economy caused a change.
It also does not show that an owner moved or that the business operates in the state where its application is counted. Treat explanations about migration or policy as separate questions that need separate evidence.
Does a High Count Make a State the Best Place to Form an LLC?
A high application count does not make a state the right home for your LLC. If you operate elsewhere, you may still need to register there and meet its filing and tax rules. Use the table to find states worth researching, not to choose where to form.
Related Article:
How to Find LLC-Only Filing Numbers
For LLC-only formation numbers, use each state’s official business registry. The U.S. Small Business Administration’s state registration lookup points you to each state’s official registration office.
Use one calendar period and confirm whether the state reports new LLC filings, all entity filings, renewals, or another measure. Reporting categories can differ, so document gaps instead of treating an EIN-application total as an LLC count.
How We Calculated the Comparison
For each state, I added its 12 not-seasonally-adjusted monthly Business Applications (BA) observations for 2025. The year-over-year percentage compares that sum with the same series’ 12-month total for 2024.
The per-capita figure is 2025 applications ÷ July 1, 2025 population × 10,000. The application count is a flow across the year; the population figure is a midyear estimate, so read the rate as a simple comparison rather than a precise startup probability.
Where to Check the Newest Census Data
On September 11, 2026, the Census Bureau’s August 2026 Business Formation Statistics release reported 531,728 seasonally adjusted applications nationwide, down 7.8% from July. That one-month national figure does not replace the complete 2025 state comparison above.
When refreshing the state table, use the same series and adjustment status for each state. The Census Bureau says its visualizations will not be updated; check the downloadable Business Formation Statistics data instead.
References:
- https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- https://www2.census.gov/programs-surveys/popest/datasets/2020-2025/state/totals/NST-EST2025-ALLDATA.csv
- https://www.census.gov/econ/bfs/technicaldocumentation/methodology.html
