January Business Formation Report

January saw a strong start to the year, with a 25% increase in business formations compared to the previous month and 483,034 new businesses formed nationwide. Compared to January last year, new registrations are down, with about 23,553 less formations across the country. Even through the minor chaos of this month’s wildfires, a presidential transition, economic uncertainty, and a winter weather surge, January is putting up decent numbers compared to the slower pace we saw at the end of 2024. Entrepreneurs were clearly ready to get to work after the holidays, and some may have been eager to launch their new ventures before the inauguration. Most states saw gains over December, while only a few saw drops, including Wyoming, New Hampshire, Illinois, North Dakota, and Maryland. After a tough 2024, Alabama saw a solid increase in formations this month after a sluggish 2024 Q4. Maine and Vermont have shown great consistency this year. Even so, two-thirds of jurisdictions averaged fewer formations over the past 12 months compared to the year before. Our analysis is based on state and federal Corporations Division data, as well as our own research, comparing changes year over year from January 2024 to January 2025. Data is collected on a rolling basis and may be updated as additional information becomes available.