Americans formed 492,000 new businesses in March, the most ever for the month of March. That comes after February 2026 saw 496,000 new businesses launch, the most for any February. January also set a record for January as did December and each month since September 2025.
In the first quarter of 2026, Americans started 1.5 million businesses, 18% more than were started in the first quarter of 2025 and a new record. Oklahoma led the nation with a 66% increase in new business formation in Q1 2026 compared to Q1 2025. But six other states had increases of at least 30%: Kentucky, Missouri, Utah, West Virginia, Kansas, and Tennessee. Over the last 12 months, Americans started 5.9 million new small business, also a record.
Almost all of the new businesses were small with many having no employees and few having more than 10.
The new businesses being formed are increasingly concentrated in professional services such as accounting, legal, and computer services. Before March 2025, the record for the most professional services firms launched in a single month was 60,000 new businesses. Since last March, the US has averaged 68,000 new professional services businesses per month, 13% more than the previous record. March 2026 saw a record 78,000 professional services businesses started. The first quarter of 2026 saw 224,000 new small, professional services businesses formed.
These businesses are generally low risk, and most insurers are open to commercial lines will jump at the chance to insure them.
Unfortunately, many of the business owners do not know that they need insurance. These small businesses are often run out of the entrepreneur’s home and are often not the owner’s primary source of income. They do not appear risky, and many are not risky. But insurance is required for workers compensation, autos that are used in the business and more.
What To Do With This Information
At the current rate of new business formation, Americans will start over 6 million new businesses in 2026 with robust growth in professional services. Agents affiliated with carriers willing to write commercial lines should not give up on this path to growth.
Professional services are low risk and a rapidly rising field. Ask personal lines customers if they have a small business even if it is just a hobby or a side business. Join or found local small business organizations, particularly for professional services groups. Recommend these groups to personal lines customers to help grow the group. Sponsoring local professional services groups (e.g. “City X Graphic Artists Society”) can be an inexpensive way to make the sponsoring agent the group’s go-to advisor for insurance.