Business Formation Report | April 2026
"After a record-breaking month in March, April continued to post numbers well above normal historical levels. That tells us this isn’t a short-term spike. People are responding to a changing job market by creating their own opportunities." — Molly Cavanah, VP Revenue Growth & Data
“At Registered Agents Inc, we’re helping people launch a business faster and cheaper than ever before, whether it’s a small side gig or a growing venture. Combined with concerns about layoffs and rising costs, that’s creating a powerful surge in formation activity.”
Cite this Report
Registered Agents Inc. (2026). Business Formation Report | April 2026. Retrieved from https://www.registeredagentsinc.com/business-formation-report/
Whitney Ward
Public Relations DirectorKey Takeaways
April brought three things worthy of extra attention:
First, a 10% dip from last month, a seasonal pattern this report has tracked consistently for several years. However, it’s important to note March’s record-breaking total of nearly 625,000 new business formations. April’s monthly total of 560,000 new formations is still higher than any month in 2025.
Second, a backdrop of Middle East turmoil that’s rattled supply chains and driven up food, fuel and transportation costs at every level. It has pushed many business owners to adapt their plans accordingly.
And lastly, a side hustle economy that appears to be accelerating in response to rising costs and economic uncertainty. While the U.S. unemployment rate is holding steady, countless Americans remain “under-employed” and are looking to bridge the gap between growing expenses and limited income until the job market improves.
April follows the highest formation month in report history.
March set an all-time record for business formations EVER. The previous record was March 2023, when the U.S. was re-emerging after COVID. April’s numbers are down 10% from that peak, but this is an expected pattern that repeats each year. Moreover, formations are still up 9% from April 2025, continuing an upward trend and suggesting no change in trajectory.
Two states miss the memo about April cooling.
While most states pulled back in April, North Carolina and Mississippi each posted 9% month-over-month gains, the highest month-over-month climbs in this month’s dataset. The year-over-year story is just as interesting: North Carolina is up 36% and Mississippi up 49% compared to April 2025, making them two of the fastest-growing formation states in the country by that measure.
Nevada keeps growing as California loses ground.
California has been flat or declining the past few months while its neighbor in Nevada continues to expand. This trend seems to continue for the Golden State, down 2% from April 2025 and down 20% from last month, Meanwhile, Nevada stays relatively flat, down only 4% from March’s record numbers and growing a sharp 17% year-over-year. The gap between these western states appears to be widening, with factors like regulatory complexity and tax structure likely contributing factors.
State Leaderboard
Top performing jurisdictions by monthly filing total.
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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?
How has ongoing global instability affected your business planning over the next 12 months?
Which business priority has become most important due to recent economic and political uncertainty?
How have your customers responded to current economic and political uncertainty?
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.