January Business Health Analysis
25%
Month over Month Change
483,034
New US Business Formations
5%
Year over Year Change
Key Takeaways
- While January showed a strong start compared to December, business formation is still down 5% from January of last year.
- Political transitions, wildfires and economic uncertainty likely contributed to the dip in year over year formations.
- Two-thirds of states showed a solid increase in formations after a sluggish 2024 Q4.
Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.
January Comes out Swinging
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 fewer 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.
Please note that these insights are based on available data, which may be updated as more complete numbers become available.
483034
New Business Formations
25%
Month over Month Change
-5%
Year over Year Change
| Location | New Businesses | New Businesses | % Change | New Businesses | % Change | 12 Month Avg. |
|---|---|---|---|---|---|---|
| Alabama | 4135 | 2339 | 77% | 4909 | -16% | 3658 |
| Alaska | 1101 | 910 | 21% | 999 | 10% | 995 |
| Arizona | 11261 | 9070 | 24% | 11981 | -6% | 10261 |
| Arkansas | 3319 | 2434 | 36% | 3269 | 2% | 3008 |
| California | 49030 | 27849 | 76% | 44906 | 9% | 34840 |
| Colorado | 16731 | 13150 | 27% | 11783 | 42% | 13784 |
| Connecticut | 5009 | 3856 | 30% | 4828 | 4% | 4305 |
| Delaware | 25927 | 22513 | 32% | 25927 | 15% | 24245 |
| District of Columbia | 1671 | 1202 | 39% | 1428 | 17% | 1384 |
| Florida | 61172 | 42568 | 44% | 60968 | 0% | 52545 |
| Georgia | 22697 | 15592 | 46% | 23043 | -2% | 19042 |
| Hawaii | 2374 | 1756 | 35% | 2355 | 1% | 2051 |
| Idaho | 3993 | 3124 | 28% | 3566 | 12% | 3373 |
| Illinois | 13255 | 12381 | -13% | 13873 | -22% | 12461 |
| Indiana | 8812 | 6733 | 31% | 8905 | -1% | 7643 |
| Iowa | 3652 | 2625 | 39% | 3039 | 20% | 3165 |
| Kansas | 3124 | 2573 | 21% | 2360 | 32% | 2718 |
| Kentucky | 5128 | 3278 | 56% | 5252 | -2% | 4113 |
| Louisiana | 4911 | 3186 | 54% | 5182 | -5% | 4758 |
| Maine | 1665 | 1322 | 26% | 1298 | 28% | 1374 |
| Maryland | 8606 | 5809 | -4% | 8081 | -31% | 6790 |
| Massachusetts | 7236 | 4548 | 59% | 6706 | 8% | 5496 |
| Michigan | 11577 | 10824 | 7% | 12610 | -8% | 11162 |
| Minnesota | 7153 | 5683 | 26% | 6705 | 7% | 6248 |
| Mississippi | 4217 | 3209 | 31% | 3966 | 6% | 3823 |
| Missouri | 9564 | 6878 | 39% | 8966 | 7% | 8190 |
| Montana | 5252 | 4289 | 22% | 4772 | 10% | 4360 |
| Nebraska | 1877 | 1728 | 9% | 1755 | 7% | 1802 |
| Nevada | 6004 | 4898 | 23% | 5432 | 11% | 5124 |
| New Hampshire | 1050 | 1563 | -33% | 1976 | -47% | 1595 |
| New Jersey | 15132 | 11313 | 34% | 15223 | -1% | 13311 |
| New Mexico | 2859 | 1749 | 63% | 4054 | -29% | 3321 |
| New York | 24459 | 18442 | 33% | 24230 | 1% | 20945 |
| North Carolina | 14258 | 10031 | 42% | 16518 | -14% | 13198 |
| North Dakota | 919 | 1024 | -10% | 743 | 24% | 760 |
| Ohio | 14636 | 10591 | 38% | 13927 | 5% | 12299 |
| Oklahoma | 5439 | 4170 | 30% | 4036 | 35% | 4095 |
| Oregon | 6120 | 4991 | 23% | 5772 | 6% | 5319 |
| Pennsylvania | 11990 | 10037 | 19% | 12359 | -3% | 11275 |
| Rhode Island | 1433 | 939 | 53% | 1349 | 6% | 1092 |
| South Carolina | 8462 | 6711 | 26% | 8709 | -3% | 7333 |
| South Dakota | 1476 | 1225 | 20% | 1361 | 8% | 1193 |
| Tennessee | 7635 | 5547 | 38% | 6675 | 14% | 6238 |
| Texas | 39448 | 31718 | 24% | 37466 | 5% | 34471 |
| Utah | 7380 | 5547 | 14% | 7289 | -13% | 5744 |
| Vermont | 761 | 455 | 67% | 1343 | -43% | 877 |
| Virginia | 12345 | 9127 | 35% | 11874 | 4% | 10454 |
| Washington | 11166 | 7847 | 42% | 10917 | 2% | 8817 |
| West Virginia | 1671 | 1151 | 45% | 1526 | 10% | 1534 |
| Wisconsin | 6313 | 4308 | 47% | 5826 | 8% | 5107 |
| Wyoming | 15001 | 14402 | -65% | 14550 | -65% | 12783 |