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Data and charts

Who files, and what happens next

Starting is easy to do and easy to count. Reaching a first payroll is slower and rarer.

An application is not a launched business. Many applicants never intend to hire.

These figures describe all new U.S. businesses, not WE's results.

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More starts in every industry

Applications grew in every industry shown, including Information and professional and technical services, the two closest to software work.

U.S. business applications by industry, 2005 to 2025 More people start than ever: 5,671,836 applications in 2025, more than double 2005. Starting is not the hard part.
U.S. business applications by industry, 2005 to 2025 Stacked areas of yearly applications. The total rose from 2,485,100 in 2005 to 5,671,836 in 2025; retail trade and professional services are the two largest named layers, and the all-other layer is the rest of the economy. 0k 2,000k 4,000k 200520092013201720212025 ■ Professional and technical ■ Retail ■ Construction ■ Health care ■ Transport ■ All other
Show the data as a table
U.S. business applications by industry, 2005 to 2025
YearProfessional, scientific and technical servicesRetail tradeConstructionHealth care and social assistanceTransportation and warehousingAll other industries
2005309.1k299.9k356.7k148.1k127.2k1,244.1k
2006328.3k308.5k359.2k158.5k144.8k1,316.5k
2007344.8k321k326.4k165.7k141.2k1,334.9k
2008357.3k335.3k286.9k175.6k123.7k1,280.2k
2009362.7k327.8k238.8k168.1k109.8k1,199.1k
2010369.3k335.6k228k172.2k124.9k1,243.9k
2011381.5k354k228k174.5k130.4k1,282k
2012373.6k350.6k224.3k171.7k134.9k1,295.1k
2013374.1k359.3k242.4k174.4k142.9k1,298.3k
2014386.4k366.1k260.5k180.6k163.1k1,334.3k
2015391.9k376.4k284.4k190.3k182.1k1,370.9k
2016408.7k410.1k306.8k201.1k187.3k1,434.3k
2017423.6k446.1k339.5k203.3k199.9k1,570.2k
2018456.7k479.2k368.4k217.3k238.2k1,727.1k
2019456.9k518.4k382.1k224.9k239k1,677.6k
2020534.1k825.4k406.8k267k320.3k2,002.9k
2021612.7k985.6k499.4k297.6k477.3k2,518.3k
2022606k871.1k496.1k295.7k427.8k2,365.8k
2023674.4k971.4k545.9k325k393.1k2,559.6k
2024668k940.1k522k325.1k351.2k2,417.8k
2025764k1,166k519.1k352k366.7k2,504k

Source: U.S. Census Bureau, Business Formation Statistics , Release of 2026-10-14 (September 2026 data)

Retrieved 2026-10-15. Each value is the sum of twelve monthly not-seasonally-adjusted counts; "All other industries" is the total minus the five named industries.

Business applications by industry, 2005 and 2025 Every industry shown has more people starting than in 2005, including the software-adjacent ones.
Business applications by industry, 2005 and 2025 Seven lines from 2005 to 2025 show yearly applications in thousands. Every industry shown rose; retail trade rose most, from about 300 thousand to 1.17 million. Professional and technical services and Information are highlighted. 2005 2025 Retail trade 300k 1166k Retail trade Professional and technical 309k 764k Professional and technical Construction 357k 519k Construction Health care 148k 352k Health care Transportation 127k 367k Transportation Information 49k 110k Information Accommodation and food 125k 300k Accommodation and food
Show the data as a table
Business applications by industry, 2005 and 2025
Group20052025Change
Retail trade300k1166k+866.1k
Professional and technical309k764k+454.9k
Construction357k519k+162.4k
Health care148k352k+204k
Transportation127k367k+239.5k
Information49k110k+61.2k
Accommodation and food125k300k+175.4k

Source: U.S. Census Bureau, Business Formation Statistics , Release of 2026-10-14 (September 2026 data)

Retrieved 2026-10-15. Values are annual sums of monthly counts.

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Most applications do not become employers

An application is a request for a tax number, often by one person with no plan to hire. Of the applications filed in 2021, fewer than 8 in 100 became an employer business within two years.

From business application to employer business, applications filed in 2021 The flow narrows fast: of 5,390,816 applications, 403,072 reached a first payroll within eight quarters.
From business application to employer business, applications filed in 2021 A flow diagram. Of 5,390,816 business applications filed in 2021, 315,318 formed an employer business within four quarters, 87,754 more in quarters five to eight, and 4,987,744 had not formed an employer business within eight quarters. Applications filed in 2021 5,390,816 Employer business within 4 quarters 315,318 Employer business in quarters 5 to 8 87,754 No employer business within 8 quarters 4,987,744
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From business application to employer business, applications filed in 2021
FromToApplicationsShare of the source
Applications filed in 2021Employer business within 4 quarters315,3185.8%
Applications filed in 2021Employer business in quarters 5 to 887,7541.6%
Applications filed in 2021No employer business within 8 quarters4,987,74492.5%

Source: U.S. Census Bureau, Business Formation Statistics , Release of 2026-10-14 (September 2026 data)

Retrieved 2026-10-15. Counts are the 2021 annual sums of applications (BA_BA) and of formations within four and eight quarters (BF_BF4Q, BF_BF8Q); the second link is the eight-quarter count minus the four-quarter count. An application is not a launched business.

Of 1,000 business applications filed in 2021, how many became employers Most applications do not reach a first payroll within two years: about 7.5 in every 100 do.
  • 315,318 formed within 4 quarters
  • 87,754 formed in quarters 5 to 8
  • 4,987,744 no employer business within 8 quarters
Of 1,000 business applications filed in 2021, how many became employers A grid of 1,000 squares, each one in a thousand of the applications filed in 2021. 59 squares formed employer businesses within four quarters, 16 more in quarters five to eight, and the other 925 had not formed an employer business within eight quarters.

Each square is one in a thousand of the applications filed in 2021. Squares are rounded so they add to 1000; the exact figures are in the table.

Show the data as a table
Of 1,000 business applications filed in 2021, how many became employers
GroupExact figureSquares (of 1000)
formed within 4 quarters315,31859
formed in quarters 5 to 887,75416
no employer business within 8 quarters4,987,744925

Source: U.S. Census Bureau, Business Formation Statistics , Release of 2026-10-14 (September 2026 data)

Retrieved 2026-10-15. Counts are the 2021 annual sums of applications (BA_BA) and of formations within four and eight quarters; the squares are rounded to add to 1,000. An application is not a launched business.

Average quarters from application to first payroll, 2005 and 2021 Getting from an application to a first payroll now takes about 2.29 quarters on average, up from 1.48 in 2005.
Average quarters from application to first payroll, 2005 and 2021 Two lines from 2005 to 2021. Among applications that became employer businesses within eight quarters, the average wait rose from 1.48 to 2.29 quarters; within four quarters it rose from 0.95 to 1.39. 2005 2021 Within 8 quarters 1.48 quarters 2.29 quarters Within 8 quarters Within 4 quarters 0.95 quarters 1.39 quarters Within 4 quarters
Show the data as a table
Average quarters from application to first payroll, 2005 and 2021
Group20052021Change
Within 8 quarters1.48 quarters2.29 quarters+0.8 quarters
Within 4 quarters0.95 quarters1.39 quarters+0.4 quarters

Source: U.S. Census Bureau, Business Formation Statistics , Release of 2026-10-14 (September 2026 data)

Retrieved 2026-10-15. Values are the published average duration (BF_DUR4Q and BF_DUR8Q) for applications filed that year. They cover only applications that formed an employer business.

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Sources and method

Every figure is copied from the publisher or computed from published numbers by simple arithmetic, and says how. Figures that could not be verified are left out. These figures describe all new U.S. businesses, not WE's results.

  1. Business Formation Statistics, monthly series (bfs_monthly.csv)

    U.S. Census Bureau. Published: Release of 2026-10-14 (September 2026 data). Retrieved 2026-10-15.

    What WE did. Annual totals are the sum of the twelve not-seasonally-adjusted monthly U.S. values of a series (BA_BA applications, BA_HBA high-propensity applications, BF_BF4Q and BF_BF8Q formations within four and eight quarters), by NAICS sector where the file gives one. Quarters to first payroll (BF_DUR4Q, BF_DUR8Q) are the mean of the twelve monthly values. Sector groups are sums of the file's sector codes.

    • The Census Bureau revises the series each year (next revision scheduled with the October 2026 release).
    • An application is a request for an employer identification number, not a launched business; a formation is the first payroll.
    • Duration is measured only for applications that formed an employer business within the window.

  2. Business Formation Statistics: Definitions

    U.S. Census Bureau. Published: Current page. Retrieved 2026-10-15.

    What WE did. Definitions only; no figures are taken from this page.