Business growth across the United States is not moving at the same speed. Some states continue to account for the largest number of new business formations, while others are recording much faster percentage increases from smaller bases. Looking at both measures can provide a clearer view of where entrepreneurial activity is gaining momentum.
The latest data from Registered Agents Inc shows more than 560,000 new business formations were recorded nationwide in September, making it the first September on record to exceed 500,000 formations and the highest September total recorded by the report. Year-over-year growth was widespread, with 41 of 51 tracked jurisdictions reporting increases. Year-to-date formations have already reached 5.3 million, up 16% from the same nine-month period last year. Registered Agents Inc projects the year will end with a record-breaking 6.7 million new business formations, up from 5.9 million in 2025.
Why Does Registered Agents Inc Track Business Formations?
Registered Agents Inc uses nationwide formation activity to provide a monthly view of business creation across every state and Washington, D.C.
Founded in 2008, Registered Agents Inc is the largest registered agent service and business formation provider in the U.S. The company helps entrepreneurs start and maintain businesses through formation and compliance solutions, along with identity services such as websites, domains, professional business addresses, phone numbers, and mail services.
Its direct role in business formation also gives Registered Agents Inc visibility into filing activity across the country. The company tracks monthly formations across all 50 states and Washington, D.C., and publishes the findings through the Business Formation Report.
The Business Formation Report is released on the second Tuesday of every month and covers the previous month, providing economists, journalists, policymakers, entrepreneurs, and industry stakeholders with current state-level formation data. Registered Agents Inc states that its formation data is cross-referenced with U.S. Census data and Secretaries of State across all 50 states and Washington, D.C.
Rather than ranking states based on a broad definition of business friendliness, the report focuses on actual formation activity. That distinction keeps attention on where new entities are being created and how filing patterns are changing over time.
Which States Are Seeing the Fastest New Business Growth?
Notable percentage gains are appearing across a mix of states rather than only in the country’s largest business markets.
Early numbers from Registered Agents Inc show that many states seeing rapid growth in business formations are outside the country’s largest business markets. Wyoming recorded more than 24,000 formations in September, up 37% from the same month last year. Alabama posted 51% annual growth, while Idaho was up 45% year over year.
| State | Growth | Comparison |
|---|---|---|
| Alabama | +51% | Year over year |
| Oregon | +50% | Year over year |
| Idaho | +45% | Year over year |
| Colorado | +41% | Year over year |
| Wyoming | +37% | Year over year |
| North Carolina | +20% | Year to date |
| Georgia | +10% | Year over year |
Growth also remained relatively broad. Registered Agents Inc reported year-over-year increases in 41 of 51 tracked jurisdictions, indicating that higher formation activity extended beyond a small group of states.
Why Do Formation Volume and Growth Rates Differ?
Formation volume shows where the most businesses are being created, while growth rates show where activity is changing fastest.
A state with a large number of new formations is not necessarily experiencing the fastest business growth. The September data shows how differently these two measures can behave:
- Florida led by total formations: The state recorded more than 50,000 new business formations in September, the highest total nationwide, but activity was down 7% from the same month last year.
- Texas combined high volume with strong growth: Texas recorded more than 45,000 formations, the second-highest total in the country, alongside a 19% year-over-year increase.
- Missouri posted much faster growth from a smaller base: Missouri recorded more than 16,000 formations, considerably fewer than Florida or Texas, while formation activity increased 82% year over year.
- North Dakota showed a similar pattern: The state recorded about 1,600 formations and posted 58% annual growth.
Florida, Texas, and California remain major centers of business creation by total volume, while Missouri, North Dakota, Maryland, Alabama, Oregon, and Idaho are among the states recording faster year-over-year growth.
The distinction matters when evaluating new business growth by state. Total formation volume shows where business creation is concentrated, while growth rates show where activity is accelerating or slowing. Looking at both provides a more complete view of how formation patterns are changing across the country.
What Can State Business Formation Activity Reveal About the Economy?
Formation data can provide an early signal of entrepreneurial activity, but changes should be viewed alongside other economic and policy indicators.
A business formation represents an early stage in the entrepreneurial process. Registered Agents Inc counts new entities formed through filings with a Secretary of State or equivalent agency, giving the report visibility into businesses at the legal formation stage. State reporting schedules can vary, and figures may be updated as jurisdictions revise or finalize filing counts.
That early-stage perspective helps explain why formation data can be useful when examining economic confidence. An increase in new entities can indicate that more entrepreneurs are taking formal steps toward starting businesses. A decline can signal a slowdown in filing activity.
Formation numbers alone, however, do not explain why a change occurred.
Employment conditions, interest rates, population shifts, local demand, taxes, filing requirements, regulatory changes, and other economic conditions can coincide with changes in business creation. A jump in formations following a policy change may provide a reason for further analysis, but timing does not establish that the policy directly caused the increase.
The same caution applies when comparing regions. Strong formation growth can help identify areas where entrepreneurial activity is changing, but additional economic data is needed to determine what is driving the movement or whether newly formed entities eventually become operating employers.
Registered Agents Inc positions the Business Formation Report as one source that can be considered alongside broader economic and industry trends. The state-level detail can help surface shifts that may be harder to see in national totals alone.
Monthly reporting also makes it possible to track how formation activity changes over time. The Business Formation Report covers all 50 states and Washington, D.C., with formation counts, year-over-year changes, and month-over-month comparisons. Registered Agents Inc also operates directly within business formation and compliance, providing visibility into the administrative stage of new entity creation while making broader formation trends available through its public report.
Verdict: What Does New Business Growth by State Reveal?
The latest data shows widespread formation growth, but the states gaining momentum are not always the states producing the most new businesses.
The latest Business Formation Report data shows that U.S. business creation remains widespread, while total formation volume and growth rates continue to tell different stories across states. Florida, Texas, and California remain major centers of business creation by volume, while states including Missouri, North Dakota, Alabama, Oregon, and Idaho are recording much faster annual growth.
September also marks a notable national milestone. More than 560,000 formations made it the first September to exceed 500,000 new businesses, while year-to-date formations have reached 5.3 million. Registered Agents Inc projects 6.7 million formations for the full year, compared with 5.9 million in the previous year.
That difference makes state-level analysis more useful than relying on one national figure. Total volume can show where business creation is concentrated, while growth rates can help identify where formation activity is gaining or losing momentum.
New business formations should not be treated as a complete measure of economic health. New entities still face questions around survival, hiring, revenue, financing, and long-term growth. Formation activity does, however, provide an early view of entrepreneurial intent and changing business activity.
By updating the Business Formation Report each month and tracking formations across all 50 states plus Washington, D.C., Registered Agents Inc provides a current framework for following those changes. For economic researchers, policymakers, journalists, and entrepreneurs, the data offers a clearer view of where new business activity is concentrated and where formation patterns may be starting to shift.