New business statistics: 2005 to December 2024
How many new businesses are started each year in the US? [Updated monthly]

Business applications in the US are on the decline. After a record breaking number of business applications being submitted in 2023 (5.48 million), 2024 was a little bit quieter, down 4.77% to 5.21 million. And 2025 is off to a very cool start with 392,496 applications being lodged so far in January 2025, down 12.29% compared to the same period last year.
Since the start of 2025 business applications are down -12.29% compared to the first month of 2024, with 392,496 businesses starting in that time frame compared to 447,499 in the first month of 2024.
Monthly business applications have been strong since the pandemic, peaking in July 2020 with 552,214. Since May 2020, the monthly average number of business applications sits at 436,379 compared to 232,475 per month (avg. from January 2005–April 2020).
Month-over-month business applications were down in January 2025, with 392,496 submissions compared to the 456,309 business applications submitted in December 2024 — a decrease of 13.98%.
While you may think of summer as a time for vacation, it’s actually the busiest time of year for new business apllications with July seeing the most applications at an average of 289,353. On the otherside of the coin is March, with just 273,462 applications being filed.
In 2024 business applications were down slightly with 5.21 million applications being submitted compared to 5.48 million in 2023, both well above the annual average of 3.4 million since 2005. With the number of business applications increasing by an average of 4.22% year-over-year, we can expect that 2025 will see roughly 5.71 million applications.
In addition to the business applications data, the US Census Bureau also offers formation predictions, basically a forecast of how many business applications will become an employer (wage-paying) business within four quarters.
While business applications are up, the percentage of those who start a new business that will have payroll tax liabilities within 12 months of submitting their business application is on the decline. Since 2005, the US Census Bureau predicted an average of 10.2% of applications would become businesses within four quarters of submitting their applications.
There will be 12 releases in 2025, with the next update coming on Wednesday, March 12, 2025, with information related to business formation in February 2024.