Last updated: July 2026 · Sources: U.S. Census Bureau, SBA Office of Advocacy, Bureau of Labor Statistics, and Brendat's verified state filing data. Free to cite with a link to this page.
Quick Answer:
Americans filed a record 5.62 million new business applications in 2025, and 2026 is tracking even higher — up 17% through May. There are now 36.2 million small businesses in the U.S., making up 99.9% of all businesses. LLC filing fees range from $50 (Arizona, New Mexico, Michigan, Colorado) to $300 (Texas), and roughly 8 in 10 new businesses survive their first year.
Key LLC & Small Business Statistics (2026 Snapshot)
- 5.62 million new business applications were filed in 2025 — up from 5.2 million in 2024 and well above the long-term annual average of 3.47 million (U.S. Census Bureau)
- 2026 is on pace to break the record: applications through May 2026 are up about 17% compared to the same period in 2025 (U.S. Census Bureau)
- 36.2 million small businesses operate in the U.S. as of 2026 (SBA Office of Advocacy)
- Small businesses make up 99.9% of all U.S. businesses and generate 43.5% of U.S. GDP (SBA)
- Small businesses employ 62.3 million people — about 46% of the private-sector workforce (SBA)
- Roughly 82% of small businesses have no employees — solo ventures run by one person (SBA)
- July is the busiest month of the year for new business applications (U.S. Census Bureau)
How Much Does It Cost to Start an LLC in 2026?
The one-time state filing fee is the biggest required cost of forming an LLC, and it varies widely by state. The fees below are verified directly from Brendat's live order system — not scraped from outdated third-party lists.
State -------------------------------------------------------- LLC Filing Fee
Arizona ----------------------------------------------------- $50
New Mexico------------------------------------------------ $50
Michigan---------------------------------------------------- $50
Colorado---------------------------------------------------- $50
California-----------------------------------------------------$70
Utah ----------------------------------------------------------$72
Nevada--------------------------------------------------------$75
Delaware-----------------------------------------------------$90
Maryland-----------------------------------------------------$100
Oklahoma----------------------------------------------------$100
Wyoming-----------------------------------------------------$100
Georgia-------------------------------------------------------$100
Florida--------------------------------------------------------$125
Illinois--------------------------------------------------------$150
New York-----------------------------------------------------$200
Texas----------------------------------------------------------$300
Cost statistics at a glance:
- The cheapest states to file an LLC are Arizona, New Mexico, Michigan, and Colorado at $50 each
- The most expensive state to file is Texas at $300 — six times the cheapest option
- The median filing fee across these states is $100
- Filing fees are only part of the picture: annual report fees, registered agent services, and franchise taxes vary by state and can exceed the initial filing cost over time. See our full breakdown in How Much Does an LLC Cost.
Business Survival Statistics: How Many Make It?
- About 78–80% of new businesses survive their first year (Bureau of Labor Statistics)
- Roughly 50% survive five years — a figure that has stayed remarkably stable across decades and economic cycles (BLS)
- About 35% are still operating after ten years (BLS)
- The steepest drop-off happens between years one and two (BLS)
- 82% of failed small businesses cite cash flow problems as a contributing factor — the single most common reason businesses close
One encouraging note: the widely repeated claim that "90% of businesses fail in the first year" is a myth. The real first-year failure rate is closer to 20%.
Who Is Starting Businesses in 2026?
- Sole proprietorships make up 86% of nonemployer firms — and converting to an LLC is one of the most common upgrades owners make as they grow (SBA)
- Women own about 43% of nonemployer firms and 21.6% of employer firms (SBA)
- Around 21% of employer firms are minority-owned (SBA)
- Over half of small businesses are home-based
- Only about 10% of new business applications become employer (payroll-paying) businesses within a year — the vast majority start and stay as one-person operations (U.S. Census Bureau)
Why the LLC Boom Keeps Growing
New business formation surged during the pandemic and never came back down. Monthly applications have averaged over 440,000 since mid-2020 — nearly double the pre-pandemic average of about 232,000 per month. Economists point to two drivers that are still in play: more people wanting income independence, and the falling cost of starting online businesses. The LLC remains the structure of choice for most of these founders because it combines personal liability protection with simple, flexible taxation — without the formalities a corporation requires.
Frequently Asked Questions
How many LLCs are formed each year in the U.S.?
The Census Bureau tracks business applications rather than LLCs specifically, but with 5.62 million applications filed in 2025 and LLCs being the most popular structure for new small businesses, the number of new LLCs each year runs well into the millions.
What state has the cheapest LLC filing fee?
Arizona, New Mexico, Michigan, and Colorado all charge just $50 to file. Keep in mind ongoing costs differ too — some low-fee states have annual reports, while others (like Arizona) don't require one at all.
What percentage of small businesses fail?
About 20% close within the first year, 50% within five years, and 65% within ten years, according to Bureau of Labor Statistics data. Cash flow problems are the most commonly cited factor.
How many small businesses are there in the United States?
36.2 million as of 2026, according to the SBA Office of Advocacy — 99.9% of all U.S. businesses.
How to Cite These Statistics
All statistics on this page are free to use in articles, reports, and presentations. Please credit "Brendat" with a link to this page as the source. Fee data is verified from Brendat's live formation system; national statistics are drawn from the U.S. Census Bureau Business Formation Statistics, SBA Office of Advocacy, and Bureau of Labor Statistics.
Ready to Join the 5.6 Million?
If these numbers have you thinking about starting your own LLC, Brendat makes it simple. Our Basic package is $0 plus your state's filing fee — we handle the paperwork, you focus on the business. Over 10,000 entrepreneurs have started with Brendat, rated 4.8/5 on Trustpilot. Call us at (303) 246-8693 or start your LLC online today.
About the Author
Brendat Editorial publishes practical guidance for founders navigating business formation, compliance, and growth in the U.S.