New economic data shows startup momentum in the United States is holding steady, even as the labor market shows signs of strain. The latest Business Formation Report from Registered Agents Inc (RAI), shows new LLC and corporate filings are on the rise, a sign Americans are still starting businesses despite economic uncertainty. Business formations are often seen as an early signal of economic confidence, capturing small business activity before companies hire or generate revenue. By that measure, confidence remains high.
January recorded 556,009 new business formations nationwide, followed by 535,310 formations in February. Combined, the numbers show an 8% increase from the same two months in 2025. The data continues a trend that started more than a year ago and suggests laid-off workers are increasingly turning to self-employment, consulting, and small startups as an alternative to traditional jobs.
