US Business Applications Rise 8% to 5.6 Million in 2025 as AI and Weaker Hiring Spur Startups
Updated
Updated · Business Insider · Sep 2
US Business Applications Rise 8% to 5.6 Million in 2025 as AI and Weaker Hiring Spur Startups
2 articles · Updated · Business Insider · Sep 2
Summary
5.6 million EIN applications were filed in the US in 2025, up from 5.2 million in 2024, according to Census Bureau data tracking prospective business formation.
An 8% increase appears tied to a softer labor market pushing some laid-off or out-of-work Americans toward self-employment, while AI tools lowered barriers to launching and running companies.
Los Angeles County led the nation with 172,540 applications, followed by Miami-Dade at 135,758, while several large counties including Maricopa, Cook and Harris also neared 100,000.
Sheridan County, Wyoming, stood out with 47,787 applications despite just 33,241 residents—about 1,438 applications per 1,000 people—because many firms use local registered-agent addresses when forming low-cost LLCs.