By Aijaz Alam
How many new businesses are started in the US each year?
Americans filed 534,947 applications to start a business in September 2026, seasonally adjusted, according to the US Census Bureau's Business Formation Statistics, up 0.5% from August and about 4% from September 2025. Over a full year, 2025 brought about 5.67 million applications, the most of any full year in Census data going back to 2005.
- 534,947US business applications in September 2026, seasonally adjustedCensus Business Formation Statistics
- 5.67 millionUS business applications in all of 2025, about 62% more than in 2019Our sum of Census's 12 monthly counts, not seasonally adjusted
- 147,331High-propensity applications in September 2026, the ones most likely to become businessesCensus BFS, seasonally adjusted
- 29,022Employer businesses Census projects within four quarters from September 2026 applicationsCensus BFS, projected business formations
The numbers
The full breakdown
US business applications each month of 2026, seasonally adjusted
| Month | All applications | High-propensity applications | All applications a year earlier |
|---|---|---|---|
| Jan 2026 | 526,115 | 148,127 | 385,618 |
| Feb 2026 | 496,121 | 146,252 | 432,820 |
| Mar 2026 | 493,792 | 144,970 | 461,056 |
| Apr 2026 | 506,807 | 147,126 | 456,024 |
| May 2026 | 528,929 | 146,983 | 448,815 |
| Jun 2026 | 533,453 | 149,704 | 462,692 |
| Jul 2026 | 576,264 | 151,566 | 467,687 |
| Aug 2026 | 532,051 | 145,421 | 477,591 |
| Sep 2026 | 534,947 | 147,331 | 512,569 |
Census Business Formation Statistics file bfs_monthly.csv, read 31 Oct 2026. Census revises past months, so earlier figures can change.
From applications to new employers, US, September 2026
| Series | Sep 2026 | Sep 2025 |
|---|---|---|
| All business applications | 534,947 | 512,569 |
| High-propensity applications | 147,331 | 142,929 |
| High-propensity, from a corporation | 40,951 | 43,727 |
| High-propensity, with a planned first payroll date | 35,786 | 36,803 |
| Projected new employer businesses within four quarters | 29,022 | 27,823 |
| Projected new employer businesses within eight quarters | 39,703 | 37,668 |
Seasonally adjusted. Corporate and planned-payroll applications are subsets of high-propensity applications. Projected formations are Census estimates of how many employer businesses will come from that month's applications.
US business applications by region, September 2026
| Region | Sep 2026 | Sep 2025 |
|---|---|---|
| South | 235,028 | 232,971 |
| West | 130,070 | 120,793 |
| Midwest | 94,891 | 90,239 |
| Northeast | 74,958 | 68,566 |
Seasonally adjusted, Census regions. The four regions add up to the US total of 534,947.
The 10 states with the most business applications in 2025
| State | Applications in 2025 | Sep 2026, seasonally adjusted |
|---|---|---|
| Florida | 647,734 | 58,694 |
| California | 553,931 | 52,974 |
| Texas | 544,146 | 49,761 |
| New York | 301,047 | 26,915 |
| Georgia | 254,582 | 23,741 |
| Illinois | 189,879 | 16,241 |
| North Carolina | 182,653 | 17,324 |
| Ohio | 168,207 | 15,311 |
| Pennsylvania | 161,275 | 14,659 |
| New Jersey | 161,138 | 15,632 |
2025 column: our sum of the 12 monthly counts in the Census file, not seasonally adjusted. Sep 2026 column: Census's seasonally adjusted figure for that state.
US business applications by industry, September 2026 (top 10)
| Industry | Applications |
|---|---|
| Retail trade | 110,048 |
| Professional, scientific and technical services | 78,937 |
| Construction | 48,078 |
| Other services | 42,149 |
| Administrative and support, waste management | 38,030 |
| Transportation and warehousing | 34,792 |
| Health care and social assistance | 32,198 |
| Accommodation and food services | 26,600 |
| Real estate, rental and leasing | 23,857 |
| Finance and insurance | 20,548 |
Seasonally adjusted, by the industry the applicant named (NAICS sectors). 12,344 applications gave no industry.
Over time
US business applications per year
| Year | Applications |
|---|---|
| 2015 | 2,795,897 |
| 2016 | 2,948,338 |
| 2017 | 3,182,674 |
| 2018 | 3,486,829 |
| 2019 | 3,498,990 |
| 2020 | 4,356,498 |
| 2021 | 5,390,816 |
| 2022 | 5,062,563 |
| 2023 | 5,469,302 |
| 2024 | 5,224,176 |
| 2025 | 5,671,836 |
Our sum of the 12 monthly counts in the Census file bfs_monthly.csv (not seasonally adjusted), read 31 Oct 2026. Census revises past months. The file starts in July 2004; every full year from 2005 to 2019 was below 3.5 million. January to September 2026 already totals 4,927,840, about 15% more than the same months of 2025.
Why sources differ
Same question, different answers
| Number | When | Who measured | Why it differs |
|---|---|---|---|
| 534,947 | Sep 2026 | Census Business Formation Statistics | Applications for a tax ID (EIN) in one month, seasonally adjusted |
| 5.67 million | 2025 | Census Business Formation Statistics, our sum | All applications over a full year, not seasonally adjusted |
| 147,331 | Sep 2026 | Census BFS, high-propensity applications | Only applications Census judges likely to become businesses |
| 29,022 | Sep 2026 | Census BFS, projected business formations | Employer businesses Census expects within four quarters of applying |
| 1.3 million | 2023 | SBA Office of Advocacy, from BLS Business Employment Dynamics | Business establishments that opened for the first time, not applications |
"New businesses" can mean very different things, which is why you see 535,000 a month, 5.7 million a year or 1.3 million a year. The Census figure counts applications for an Employer Identification Number, the tax ID a business gets from the IRS. Anyone starting a sole proprietorship, LLC or side business can file one, and many never hire anyone or never trade. Census narrows this down in steps: high-propensity applications (147,331 in September 2026) are the ones most likely to become real businesses, and projected business formations (29,022) are Census's estimate of how many will become employers within a year. The SBA's 1.3 million is a different count again: business establishments that actually opened for the first time in 2023, from BLS data. Say which of these you mean. Monthly figures are also seasonally adjusted and revised, so a figure quoted last month may since have changed.
What it means
How to use these numbers
Americans are applying to start businesses at close to record rates. September 2026 brought 534,947 applications, seasonally adjusted, and every month of 2026 so far has been above the same month of 2025. The full year 2025 brought about 5.67 million applications, roughly 62% more than in 2019, before the pandemic-era jump.
Most of those applications will not become businesses with staff. Only about 28% are high-propensity applications, and Census projects about 29,000 new employer businesses within a year from September's 535,000 applications, roughly one in 18. Census does not expect the rest to hire staff within a year of applying.
The growth is broad but leans South: the South filed 235,028 applications in September 2026, more than the West and Midwest together, and Florida, California and Texas led the states in 2025. Retail trade is the largest industry category, followed by professional services and construction. For anyone selling to new businesses, such as banks, accountants, web designers and software firms, demand is strong, but only a minority of applicants will grow into employers.
Method and sources
How it was measured
Method
- Publisher
- US Census Bureau, Business Formation Statistics, with the Internal Revenue Service
- What it counts
- Applications for an Employer Identification Number (EIN) on IRS Form SS-4, except those for tax liens, estates, trusts and certain financial filings
- Series
- Business applications; high-propensity applications (likely to turn into businesses); those with a planned first payroll date; those from corporations; projected employer business formations within four and eight quarters
- Geography
- US, four Census regions, 50 states, DC and Puerto Rico; by NAICS sector for the US
- Released
- September 2026 data on 14 Oct 2026; monthly data are revised
- Checked at source
- 31 Oct 2026: Census bfs_monthly.csv and the BFS definitions page; the September release page was read on 23 Oct 2026 for the stat (it returned an error on 31 Oct)
- Next release
- Census publishes BFS monthly; October 2026 data are next
- Last changed
- 31 Oct 2026
- Data files
- CSV · JSON (stable links)
Sources
- Business Formation Statistics, US Census Bureau Official data
- Frequently Asked Questions About Small Business; Small Business Profiles, US Small Business Administration, Office of Advocacy Official data
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FAQ
More questions people ask
Is a business application the same as a new business?
No. It is an application for a federal tax ID (EIN). Census estimates that only a small share become employer businesses: about 29,022 within four quarters from the 534,947 applications filed in September 2026.
Which state has the most new business applications?
Florida, with 647,734 applications in 2025, ahead of California (553,931) and Texas (544,146), by our sum of Census's monthly counts.
Are business applications still rising?
Yes. Applications in every month of 2026 so far are above the same month of 2025, and January to September 2026 totals about 15% more than the same months a year earlier, before seasonal adjustment.
What kinds of businesses are people starting?
Retail is the largest group, 110,048 applications in September 2026, followed by professional, scientific and technical services (78,937) and construction (48,078).
Every number on this page was checked at its original source (US Census Bureau, US Small Business Administration, Office of Advocacy). Free to cite with a link to this page.