Business Formations Up 6.5% in 2025

The entrepreneurial economy proved resilient last year with business formations up 6.5% in 2025. In its analysis of Secretary of State data, CT Corporation, a Wolters Kluwer business, found that business formations in 47 states reversed a year-over-year decline in 2024 and are approaching near-record levels.

The 2025 rebound was driven in large part by recoveries in the nation's highest-volume formation states, several of which had pulled back in 2024. Since 2020, net growth in total business formations is up 26.5%. 

Florida leads all states in volume with 665,668 formations, growing 5.0% after a significant dip in 2024. Texas (up 8.4%) and New York (up 9.7%) ranked second and third, respectively.

In New England, Massachusetts led new business formations, up 7.9% from 2024. It was followed by New Hampshire (up 6.5%) and Rhode Island (up 0.9%).