Incfile, a leader in online business formation and startup services, today announces it has helped more than one million entrepreneurs start, run, and grow their small businesses. The company is also releasing new data that shows entrepreneurship rising in the United States; new business formations in January of 2023 increased by 27% year-over-year.

January’s rise in entrepreneurship was strong in all regions of the country, with 40 states reporting year-over-year growth, and particularly strong in the Western United States. Colorado led all states with 136.7% growth. Rounding out the top-five were New Mexico (+99.6%), West Virginia (+90%), Hawaii (+79.3%), and California (+75.1%).

January’s outperformance is the continuation of a trend that began back in August of 2022; January is the sixth straight month of year-over-year new business formation growth, as tracked by Incfile. January is typically one of the busiest months for new business formations and a harbinger for annual growth.

“On the heels of a blowout January jobs report, Incfile’s latest business formation data shows that American entrepreneurs have never been stronger, more passionate, or more committed to following their dreams,” said Dustin Ray, Chief Growth Officer & Co-CEO, Incfile. “Today, we’re incredibly proud to count over one million of these small business trailblazers as members of the Incfile community.

“Serving a community of a million members is a privilege that carries with it an important responsibility, and we’re more committed than ever to being the go-to resource for small business owners, providing the very best tools and resources, with no barriers to entry, and the lowest possible costs. In fact, we’ve been hard at work on some exciting new developments in this area, which we’ll be unveiling soon,” added Ray.

ONE MILLION ENTREPRENEURS STRONG

Since 2004, Incfile has simplified the process of registering and running a business for over one million small business owners. In addition to streamlining formation and incorporation with end-to-end service, Incfile’s all-in-one solution delivers a full suite of essential ongoing services like compliance, banking, bookkeeping, and more. In 2022, Incfile was recognized in Inc. Magazine’s Inc. 5000 National Awards as one of the fastest-growing businesses in the United States.

ENTREPRENEURSHIP ON THE RISE

In January of 2023, 40 states showed year-over-year growth in new small business formations, with the biggest concentration of gains in the American West. The top 10 states for growth in January were:

1. Colorado (+136.7%)
2. New Mexico (+99.6%)
3. West Virginia (+90%)
4. Hawaii (+79.3%)
5. California (+75.1%).
6. Wyoming (+74.4%)
7. Washington (+58.8%)
8. Nevada (+56.7%)
9. South Dakota (+43.8%)
10. Arizona (40.9%)

In January of 2023, the top-10 industries accounted for slightly more than half (51.4%) of all new business formations nationwide, led by the booming Real Estate sector (9.6%):

1. Real Estate (9.6%)
2. eCommerce (7.6%)
3. Consulting (6.4%)
4. Construction (5%)
5. Transportation (4.9%)
6. Administrative & Support Services (4.4%)
7. Brick-and-Mortar Retail (4.3%)
8. Technology (3.2%)
9. Manufacturing (3%)
10. Wholesalers (3%)

Looking at year-over-year growth in January 2023, the 10 fastest-growing industries, led by Accommodation/Hospitality, were:

1. Accommodation/Hospitality (+5,233.33%)
2. Postal Service (+5,050%)
3. Repair & Maintenance (+3,983.3%)
4. Sporting Goods, Hobby, Musical Instrument & Book Stores (+3,200%)
5. Sound Recording Industries (+3,100%)
6. Architectural/Engineering (+2,727.3%)
7. Personal & Laundry Services (+2,285.7%)
8. Utilities (+1,800%)
9. Publishing (+1,700%)
10. Performing Arts, Spectator Sports, and Related Industries (+1,522.7%)

To learn more about entrepreneurship or how to start a new business, please visit Incfile.com.

About Incfile

Incfile is a leader in online business formation and startup services. Since 2004, Incfile has simplified the process of registering and running a business for over one million entrepreneurs and small business owners. In addition to streamlining formation and incorporation with end-to-end service, Incfile’s all-in-one solution delivers a full suite of essential ongoing services like compliance, banking, bookkeeping, and more. With simple pricing, no contracts or hidden fees, $0 LLC formation, and one free year of registered agent service, Incfile offers unparalleled value for the modern entrepreneur. Incfile is proud to be recognized in Inc. Magazine’s Inc. 5000 National Awards for 2022. For more information, please visit www.incfile.com.

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