Small Business Formation Statistics (2026)
Americans keep starting businesses at a steady clip, and most of them stay small. This page collects the latest official figures on new business applications from the Census Bureau, entity counts from IRS tax data, small business employment from the SBA Office of Advocacy, and establishment survival rates from the Bureau of Labor Statistics.
Every number below links to its source, with the exact wording it comes from. Where agencies use different units (firms, establishments, tax returns), we report each figure as published rather than combining them.
36 statistics, each linked to its source. Updated .
Key statistics
- In September 2026, Americans filed 534,947 business applications (seasonally adjusted), according to the U.S. Census Bureau.
- 534,947
- U.S. Census Bureau, Business Formation Statistics Press Release
- As of February 2026, US small businesses employ 62.3 million people, 45.9% of private sector workers, according to the SBA Office of Advocacy.
- 45.9%
- U.S. Small Business Administration, Office of Advocacy, Advocacy Releases Frequently Asked Questions About Small Businesses 2026
- In tax year 2023, limited liability companies made up 72.7% of all partnership returns, according to the IRS Statistics of Income.
- 72.7%
- Internal Revenue Service, Statistics of Income, Partnership Returns, Tax Year 2023
- In tax year 2022, about 31.0 million individual income tax returns reported nonfarm sole proprietorship activity, according to the IRS Statistics of Income.
- 31.0 million
- Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
- 51.4% of private sector establishments that opened in the year ended March 2020 were still operating in March 2025, according to the Bureau of Labor Statistics.
- 51.4%
- U.S. Bureau of Labor Statistics, Table 7. Survival of private sector establishments by opening year
How many new business applications are filed each month?
In September 2026, Americans filed 534,947 business applications (seasonally adjusted), according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics Press Release
Business applications in September 2026 were 0.5% higher than in August 2026, according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics Press Release
In September 2026, 147,331 business applications were classified as high propensity, meaning likely to turn into businesses with payroll, according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics, September 2026 (CB26-163)
In September 2026, 35,786 business applications listed planned wages, according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics, September 2026 (CB26-163)
In September 2026, the South accounted for 235,028 business applications, the most of any US region, according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics, September 2026 (CB26-163)
The Census Bureau projects that 29,022 new employer businesses will form within four quarters from the applications filed in September 2026.
U.S. Census Bureau, Business Formation Statistics Press Release
How many LLCs and corporations are there in the US?
In September 2026, 40,951 high-propensity business applications came from corporations (seasonally adjusted), according to the U.S. Census Bureau.
U.S. Census Bureau, Business Formation Statistics, September 2026 (CB26-163)
In tax year 2023, about 3.3 million LLCs filed partnership returns, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Partnership Returns, Tax Year 2023
In tax year 2023, partnerships filed 4,575,280 returns, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Partnership Returns, Tax Year 2023
In fiscal year 2025, 6,154,614 S corporation returns (Form 1120-S) were filed with the IRS, according to the IRS Data Book.
Internal Revenue Service, Internal Revenue Service Data Book, 2025, Table 1-2
In fiscal year 2025, 2,350,205 C or other corporation income tax returns were filed with the IRS, according to the IRS Data Book.
Internal Revenue Service, Internal Revenue Service Data Book, 2025, Table 1-2
In fiscal year 2025, 5,215,815 partnership returns (Form 1065) were filed with the IRS, according to the IRS Data Book.
Internal Revenue Service, Internal Revenue Service Data Book, 2025, Table 1-2
In 2022, 55% of small employer firms were organized as S corporations, according to the SBA Office of Advocacy.
How many sole proprietorships are there?
In tax year 2022, about 31.0 million individual income tax returns reported nonfarm sole proprietorship activity, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
The number of returns reporting nonfarm sole proprietorship activity rose 5.7% from 2021 to 2022, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
In tax year 2022, nonfarm sole proprietorship returns accounted for an estimated 35,255,144 nonfarm businesses, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
In tax year 2022, nonfarm sole proprietorships reported $2,080.7 billion in total business receipts, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
In tax year 2022, nonfarm sole proprietorship profits totaled $410.7 billion, according to the IRS Statistics of Income.
Internal Revenue Service, Statistics of Income, Sole Proprietorship Returns, Tax Year 2022
In 2022, 86.7% of nonemployer firms were sole proprietorships, according to the SBA Office of Advocacy.
How many small businesses are there in the US?
The US has 36,207,130 small businesses, based on 2022 Census data compiled by the SBA Office of Advocacy.
The number of nonemployer firms grew from 15.4 million in 1997 to 29.8 million in 2022, according to the SBA Office of Advocacy.
In 2022, women owned 14 million businesses, or 40.4% of all classifiable businesses, according to the SBA Office of Advocacy.
What share of US jobs do small businesses provide?
Small businesses accounted for 61% of US net new job creation from 1995 through 2024, according to the SBA Office of Advocacy.
In the fourth quarter of 2025, there were 338,000 establishment births, which accounted for 1,006,000 jobs, according to the Bureau of Labor Statistics.
U.S. Bureau of Labor Statistics, Business Employment Dynamics Summary, Fourth Quarter 2025
How many new businesses survive?
77.9% of private sector establishments that opened in the year ended March 2024 were still operating in March 2025, according to the Bureau of Labor Statistics.
U.S. Bureau of Labor Statistics, Table 7. Survival of private sector establishments by opening year
51.4% of private sector establishments that opened in the year ended March 2020 were still operating in March 2025, according to the Bureau of Labor Statistics.
U.S. Bureau of Labor Statistics, Table 7. Survival of private sector establishments by opening year
From 1994 to 2022, an average of 67.7% of new employer establishments survived at least two years, according to the SBA Office of Advocacy using BLS data.
From 1994 to 2022, the average five-year survival rate for new employer establishments was 49.2%, according to the SBA Office of Advocacy using BLS data.
From 1994 to 2022, the average ten-year survival rate for new employer establishments was 33.9%, according to the SBA Office of Advocacy using BLS data.
In 2023, 1.3 million business establishments opened for the first time, according to the SBA Office of Advocacy using BLS data.
In 2023, about 1.2 million business establishments closed permanently, according to the SBA Office of Advocacy using BLS data.
Frequently asked questions
How many new business applications are filed in the US each month?
In September 2026, Americans filed 534,947 business applications (seasonally adjusted), according to the U.S. Census Bureau. Of those, 147,331 were high propensity applications likely to become employer businesses.
How many LLCs are there in the US?
In tax year 2023, about 3.3 million LLCs filed partnership returns, making up 72.7% of all partnerships, according to the IRS Statistics of Income.
How many sole proprietorships are there?
In tax year 2022, about 31.0 million individual income tax returns reported nonfarm sole proprietorship activity, representing an estimated 35,255,144 nonfarm businesses, according to the IRS Statistics of Income.
What share of private sector workers do small businesses employ?
As of February 2026, US small businesses employ 62.3 million people, or 45.9% of private sector workers, according to the SBA Office of Advocacy.
What percentage of new businesses survive five years?
From 1994 to 2022, the average five-year survival rate for new employer establishments was 49.2%, according to the SBA Office of Advocacy using BLS data. Of establishments that opened in the year ended March 2020, 51.4% were still operating in March 2025, according to the BLS.
Cite this page
You are welcome to use these statistics. Please cite the original source of each number and link to this page:
Oakclause. "Small Business Formation Statistics (2026)." Updated October 2026. https://www.oakclause.com/statistics/small-business-formation-statistics
How we compiled these statistics
Every number comes from a published source that we opened and checked, mostly government agencies, academic research and established surveys. Each statement names the year the data refers to, and we keep the newest edition we could find. We do not combine numbers from different sources into new figures. Read our editorial policy.
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