U.S. Business Formations Projected to Reach Record 6.7 Million in 2026
Registered Agents Inc, the nation’s largest provider of registered agent services, compliance solutions and full corporate identity services, today projected that approximately 1.5 million new businesses will form during the fourth quarter of 2026, bringing the annual total to a record 6.7 million formations.
According to the company’s August Business Formation Report, approximately 4.73 million businesses formed during the first eight months of 2026, up 16% from last year, and every month exceeding its prior-year total. Formation activity from June through August was approximately 13% higher than during the same period in 2025, signaling continued momentum and a milder-than-usual summer slowdown.
Business formation activity is a closely watched indicator of early-stage entrepreneurship and broader economic activity. Rising formations can signal that more people are willing to commit time, capital and resources to new ventures, making the data a useful barometer of entrepreneurial confidence and employment growth.
The forecast would put 2026 approximately 12% higher than the 6 million formations recorded in 2025 and 23% higher than 2024. The projection also would mean new business creations have more than doubled since 2016. Approximately 3.14 million businesses were formed in 2016, an increase of more than 113% in 10 years.
Total Formations2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 | 3.1M 3.4M 3.7M 3.8M 4.6M 5.8M 5.6M 5.8M 5.5M 6.0M 6.7M (projected) 4.7M (actual Jan-Aug) |
“Q4 is shaping up to follow the familiar seasonal pattern, but with less volatility than last year,” said Molly Cavanah, VP of Revenue Growth and Data at Registered Agents Inc. “We’re expecting a half million new formations each month for the rest of the year, putting 2026 on track to become the strongest year on record.”
Q4 Expected to Follow Familiar Pattern With Milder Swings
Business formation activity typically rises in October, dips in November and partially recovers in December. Registered Agents Inc expects that pattern to continue in 2026, but with less dramatic fluctuations than last year.
November formations are projected to decline 8.4% from October, compared with a 16.6% decline during the same period in 2025. Formations are then expected to increase 3.2% in December, compared with a 9.4% recovery last year.
Although the December rebound is projected to be softer, the milder November decline is expected to keep total Q4 formations approximately 12% above the same period in 2025.
The outlook remains unchanged following the Federal Reserve’s September 16 decision to raise its target federal funds rate range by 25 basis points from 3.75% to 4.00%. Although higher rates can increase borrowing costs for entrepreneurs, Registered Agents Inc says current filing activity and seasonal trends continue to support its Q4 projections
Growth Expands Beyond Traditional Business Hubs
Among states with at least 10,000 formations in Q4 2025, many are expected to finish Q4 with double-digit growth.
Top 10 Projected Growth States:
Ohio +66%
Colorado +57%
Missouri +43%
Michigan +38%
Mississippi +36%
Louisiana +34%
Tennessee +32%
Oregon +31%
Idaho +21%
Texas +17%
Texas stands out for a different reason. As one of the nation’s largest formation bases, it’s showing a strong combination of percentage growth and total formations.
“The growth isn’t limited to the usual high-volume producers,” Cavanah said. “At least a dozen states are projected to see substantial gains, which tells us this is a broader shift toward entrepreneurship nationwide.”
Record Formations Create a Larger Pipeline for 2027
Continued formation growth through the end of 2026 would create a substantial pipeline of potential operating businesses heading into 2027.
Eight consecutive months of year-over-year growth, and a projected record-breaking full-year total, suggest that the current rise in entrepreneurship has significant staying power and extends beyond a single month, region or economic cycle.
Registered Agents Inc is a privately owned company and the nation’s largest provider of registered agent services, compliance solutions and full corporate identity services. Operating in all 50 states and Washington, D.C., the company helps hundreds of thousands of entrepreneurs start businesses and establish professional identities online and in their communities.
