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New business statistics: 2005 to December 2024

How many new businesses are started each year in the US? [Updated monthly]

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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.

Quick stats on new businesses

  • New businesses in 2025: So far in 2025, 392,496 business applications have been submitted.(1)
  • New businesses in 2024: In 2024, 5.21 million business applications were submitted.(1)
  • New businesses in 2023: A total of 5.48 million business applications were lodged in 2023.(1)
  • New businesses in 2022: In 2022, 5.08 million business applications were submitted.(1)
  • Year-on-year change: For the last full years on record, business applications decreased 4.77% between 2024 and 2023.(2)
  • Business Applications for January 2025: There were 392,496 business applications submitted in January 2025.(2)
  • Business Applications for December 2024: There were 456,309 business applications submitted in December 2024.(2)
  • Month-on-month change: Business applications were down, decreasing by 13.98% between December 2024 and January 2025.(2)
  • Average number of applications: Each year, an average of 3.4 million business applications are submitted.(2)

Business applications: 2005–2025

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: 2005 – 2025

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 change

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%.

Which month sees the most applications?

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.

Number of business applications: 2005–2025

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.

How many of these applications turn into businesses?

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.

Business formation statistics release dates 2025

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.

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Lead Editor & Insights Editor

Richard Laycock is Finder’s NYC-based lead editor & insights editor, spending the last decade data diving, writing and editing articles about all things personal finance. His musings can be found across the web including on NASDAQ, MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University, including a semester abroad at The Missouri School of Journalism (MIZZOU). See full bio

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