New U.S. business applications for December 2024, adjusted for seasonal variation, were 457,544, an increase of 1.5 % from the month prior, the federal government said Friday.
In the Northeast, 65,821 new business applications were filed, an increase of 3.8%. A business application refers to the initial act of applying for a business license or Employer Identification Number (EIN), signifying the intent to start a business.
A business formation is the actual creation of an operational business entity, usually meaning a company that is actively hiring employees. The U.S. Census Bureau is projecting 28,835 new business formations with payroll tax liabilities nationwide within four quarters of December 2024, which would be 2.6% increase from the prior month’s projection.
Business applications by industry in December showed the largest percentage increases in Arts & Entertainment (+8.1%); Information (+7.7%); and Manufacturing (+7.4%).
Retail was the only industry with a decline in its percentage of new business applications (-8.6%).
The U.S. Census Bureau’s December 2024 Business Formation data can be found here.
