U.S. adds 3.5M businesses despite shaky economy

By Andrew Rice | The Center Square
The Center Square

(The Center Square) – The United States added nearly 3.5 million new businesses in the first half of 2026, breaking previous expectations, according to a new report.

Registered Agents Inc., a business formation service provider, released its June 2026 business report. It found that the U.S. added 3,493,381 businesses in the first six months of 2026, despite economic pressures and uncertainty in global markets.

The month of June alone showed an increase of 548,060 businesses, a greater increase over the June 2021 post-pandemic surge of 509,474. The June 2026 increase is also substantially more than June 2025, where the economy added 490,265 businesses.

Overall business growth also exceeded the same time period as last year. The economy had a 12% year-over-year increase compared to the same time period in 2025.

“This represents 442,415 more businesses than the first half of last year, illustrating a massive wave of nearly half a million more entrepreneurs stepping up to build against a backdrop of economic uncertainty and job-market squeezes,” the report reads.

Typically, the report said, the summer season shows a dip in business creation. However, this year’s business growth showed to be more flat than deflated.

“June capped off a truly remarkable first half of the year for entrepreneurship in America,” said Molly Cavanah, vice president of Revenue Growth and Data at Registered Agents Inc. “While people continue to navigate inflation and higher interest rates, record-breaking formation activity reflects a strong sense of confidence and determination among new business owners.”

The U.S. conflict in Iran caused global energy markets to spiral and inflation to spike. In June 2026, the Bureau of Labor Statistics reported a substantial decline in the inflation rate as energy prices began to return to lower levels.

Overall inflation cooled to 3.5% in June, down from 4.2% in May. The one-month cool down reflected the largest rate decline since April 2020.

Heather Long, chief economist at Navy Federal, said the report was better than expected but highlighted flaring tensions with Iran could destabilize the markets. Regardless, business formation has consistently bucked trends since the beginning of the year.

“The renewed war with Iran will almost certainly push inflation back up,” Long said.

Registered Agents Inc. also analyzed how all 50 states were adapting to the business growth trends. The report found Oregon took the lead in June 2026 with a 53% year-over-year increase in business formation from the same time period in 2025. More than 8,000 businesses were included in Oregon’s growth total.

“Industries like construction, manufacturing, and hospitality may be driving new formations as skilled workers move towards ownership rather than employment,” the report reads.

Mississippi and North Dakota also had some of the highest year-over-year increases for business growth at 46% and 44%, respectively.

“Driving factors behind the growth include the second-lowest cost of living in the country and an income tax on a legislated path toward reduction under the Build Up Mississippi Act,” the report reads.

Florida, California and Texas took the lead for the most businesses formed in the beginning of the year, according to the report. Florida added more than 64,000 businesses, followed by Texas with more than 44,000 and California with slightly more than 43,000.

Alabama, Illinois and Pennsylvania showed the largest year-over-year declines in business growth, according to the report. Alabama’s business formation decreased by 21%, year over year, followed by Pennsylvania at a decline of 16% and Illinois at 15%.

Registered Agents Inc. also surveyed business owners on their opinions about the economic outlook About 43% of owners said their business was stronger compared to this time last year.

“The baseline level of American entrepreneurship has structurally shifted upward,” the report reads. “These figures serve as an essential leading indicator of economic resilience and individual financial agency, even as broader labor market metrics fluctuate.”