Business Formation Report | March 2026
“New business formation data is one of the most reliable signals of economic momentum. It reflects confidence, access to capital and labor market dynamics, making it a vital lens for understanding the broader health and direction of the U.S. economy.”
— Molly Cavanah, VP Revenue Growth & Data
“New business formations jumped 10% nationwide in March, a clear signal that entrepreneurial momentum is holding strong. Even as economic uncertainty lingers at both the national and global level, more Americans see starting a business as a way to take control of income, flexibility, and long-term security."
Cite this Report
Registered Agents Inc. (2026). Business Formation Report | March 2026. Retrieved from https://www.registeredagentsinc.com/business-formation-report/
Key Takeaways
580,612 new businesses were formed in March across the United States—the third highest monthly nationwide total on record. 40 jurisdictions saw double digit growth between February and March, with 12 reaching 20% or more.
This data suggests that despite shifting trade policy, turmoil in the Middle East, and a labor market consistently diverging from GDP, entrepreneurs are pressing forward. It remains apparent that economic turbulence may be accelerating formation activity as workers turn to self-employment and small business ownership as an alternative to traditional employment.
National formation numbers surge past February.
Seasonal patterns ease as formations catch up from last month’s annual dip, swinging into double digit growth. Year-over-year, formations are also up 10% compared to this time in 2025, suggesting the underlying growth trend remains intact beyond short-term fluctuation.
Wyoming sustains record-breaking formation numbers.
Double-digit year-over-year growth continues as the state maintains its highest formation totals on record. One driver behind this consistent growth may be Wyoming ranking #1 in tax competitiveness on the Tax Foundation’s State Tax Competitiveness Index for the past three years.
Louisiana sees sharp growth between February and March.
Corporate franchise tax reform could be driving new entrepreneurs into forming businesses, putting Louisiana ahead of every other jurisdiction. The state repealed its corporate franchise tax as of January 2026, removing a longstanding cost burden that discouraged formation, particularly for asset-heavy small businesses.
Whitney Ward
Public Relations DirectorState Leaderboard
Top performing jurisdictions by monthly filing total.
State Rankings
Detailed formation volume for 51 jurisdictions.
Business Owner Survey
Insights into how small business owners view today’s economic climate
How would you describe the overall health of your business compared to this time last year?
How optimistic are you about your business's success over the next 12 months?
Which expense category could you reduce the fastest if revenue dropped suddenly?
Which of the following would most disrupt your business if it happened suddenly?
How aligned do you feel your personal business experience is with what you hear about the economy in the news?
Who is Registered Agents Inc?
Registered Agents Inc is an independently owned technology driven company and the nation’s largest provider of registered agent services, compliance solutions and full identity services. Founded in 2008, RAI was built on a simple premise: starting a business should be accessible, affordable, and straight forward. Nearly two decades later, that mission is reflected in the numbers. RAI operates in all 50 states and Washington, D.C., helping hundreds of thousands of people every year start their own business and establish a legitimate, professional presence online and in their communities.
We believe starting a business changes lives, and the ripple effect of a single new business can transform an entire community. States that make starting a business easier and faster see stronger communities and more economic growth. Our data helps paint an accurate picture of the business formation environment across the U.S., and enables business owners and state legislators to make smart decisions for their future.
About the Business Formation Report:
Because we file more business formations than any other provider in the U.S., our systems regularly track monthly data in every state. (ADP knows jobs - We know small businesses.)
In our New Business Formations Report, we make that data free to economists, journalists, policymakers, and entrepreneurs every month. We know small businesses power economic growth, and better information leads to better policy decisions that promote opportunity and independence for everyone.
Molly Cavanah
VP, Revenue Growth & Data
Whitney Ward
Public Relations Director
Kris Vaquez
Writer
Ellie Coback
Data Analyst
Inside the Business Formation Report
The Registered Agents Inc (RAI) New Business Formation Report measures business formation activity by tracking new entity filings at the state level across all 50 states and the District of Columbia. Each time a business is formally created through a filing with a secretary of state or equivalent agency, it is counted as one new formation in our dataset. Because state-level reporting timelines can vary, data is based on the most recent figures available at the time of publication and may be updated as states revise or finalize their counts.
What’s in the Business Formation Report?
- Monthly Snapshot of Business Formations Nationwide
- State-by-State Breakdown of Business Formations
- Month Over Month & Year Over Year Changes
- Client Sentiment Data – How Our Clients Feel About Their Businesses
Where does the data come from?
Business formation data is collected from the Secretary of State or equivalent agency of each state, plus Washington, D.C., as it becomes available on a monthly basis. This approach captures the full universe of new business entities, regardless of whether those businesses go on to apply for an Employer Identification Number (EIN) or hire employees.
• The U.S. Census Bureau only tracks businesses that apply for EINs and later go on to pay payroll taxes.
• Registered Agents Inc tracks every entity formed at the state level.
The RAI Business Formation Report counts all new business entities. Each time someone takes the step to file formation paperwork with their state’s secretary of state or equivalent agency, our report counts that as one formation. This is regardless of whether or not the business goes on to apply for an EIN and pay payroll taxes.
Because the U.S. Census Bureau only tracks EIN filings, the statistics the agency reports do not capture a complete picture of business formations in the country. A large portion of new businesses never obtain an EIN or go on to hire employees, and these businesses are not counted by the U.S. Census Bureau. As a result, Census data does not fully reflect total business formation activity. By contrast, RAI data provides a more comprehensive and immediate view of entrepreneurial activity in the United States.
Frequently Asked Questions
A team of data analysts, software engineers, customer service representatives and writers at Registered Agents Inc works together to compile the Business Formation Report each month.
No. At Registered Agents Inc, we have one mission: to support small business owners at every step of their journey. Our mission, and the ways in which we fulfill it, is independent of any political leanings. We have no affiliation with political parties or politically driven groups.
Interpreting data requires a nuanced approach that cross-references other data points or resources. For example, fluctuations could be affected by policy changes, GDP growth, consumer confidence, interest rates, market demand, and even the weather.
Delaware is a popular state to start a business in for a few reasons. First, it has strong privacy protections, allowing owners to start a business without listing their personal information on the public record. Secondly, there’s no state corporate income tax on income earned out of state. This benefits businesses operating outside of Delaware, but incorporated within the state.
Business formation data is collected from the Secretary of State or equivalent agency of each state, when it becomes available. Customer sentiment data is collected directly from clients to provide snapshot of economic outlook.
Yes! You can access monthly Business Formation Reports going back to September of 2024. Check out our Newsroom.
Many remote businesses choose to file in Wyoming because the state offers strong privacy protections. Wyoming is one of the few states in the country where LLC owners do not have to list their names and addresses on the public record (if they hire a registered agent).
Every time someone files Articles of Organization or Incorporation with their state business division, we count that as one business formation.
Unlike the US Census Bureau Business Statistics report, we do not differentiate between business entities that go on to hire employees and file payroll taxes. We count every entity formed, so our numbers include holding companies, single-member LLCs, and non-employer businesses.
Have questions about our findings?
Reach out for media inquiries, data clarifications, or general questions regarding this report.