New business applications in the U.S. declined by 4.76% in 2024, signaling a cooling after the post-pandemic entrepreneurial boom.
According to the U.S. Census Bureau, 5.2 million new business applications were filed last year, down from 5.46 million in 2023, which marked a record high.
Despite the overall decline, Wyoming continued to lead the nation in new business applications per capita, with 10 applications for every 100 residents—double that of second-place Delaware.
Key Statistics:
- Top five states for business applications per capita: Wyoming (1st), Delaware (2nd), Florida (3rd), Montana (4th), Colorado (5th).
- A 4.76% decrease in total U.S. business applications compared to 2023 (from 5.46 million to 5.2 million).
- California and New York saw significant declines, with decreases of 7.51% and 6.63% respectively.
- Montana and Washington experienced the highest increases, seeing a 13.40% and 12.38% rise in new business applications, respectively.
Wyoming has solidified its position as the business registration capital of the U.S., with a remarkable 10 applications per 100 residents in 2024. The state saw 59,356 new business applications last year, showing a slight increase from the previous year. Wyoming’s business-friendly tax policies, minimal regulatory hurdles, and robust privacy protections continue to attract entrepreneurs, particularly those from outside the U.S. and non-resident business owners.
The data revealed regional trends, with the Northwest showing strong growth in business applications, w Wyoming Attorney and Start in Wyoming CEO, Alex Freeburg, had this to say about Wyoming’s performance: “Wyoming’s strong privacy and asset protection laws, low annual fees, and no state income tax make it one of the most popular states to start a business. The interest in Wyoming LLCs has increased considerably over the past few years coinciding with more people starting online businesses and Wyoming being a popular choice for non-U.S. citizens looking to get into the U.S. markets.”
While the Southeast saw notable declines. Montana led the charge with a 13.4% rise in applications, while Washington and Oregon also posted increases. On the other hand, Louisiana, Georgia, and Mississippi experienced steep drops in new applications, with Louisiana’s decline reaching 15%. These trends suggest a shift in entrepreneurial activity, moving from the Southeast toward the Northwest. Despite the slowdown, the entrepreneurial spirit remains strong. Access to advanced business tools, including affordable AI software, is enabling entrepreneurs to start businesses with lower overhead. The growing pool of skilled professionals, particularly those affected by the changing tech industry, offers new opportunities for aspiring entrepreneurs.
History shows that times of economic adjustment often present ideal conditions for new ventures, with reduced competition and a favorable mix of resources, market demand, and talent.
Sources:
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U.S. business applications dropped 4.76% in 2024, signaling a slowdown after last year’s post-pandemic surge. News, Business Dynamic Business
