GITNUX MARKETDATA REPORT 2024

Llc Formation Statistics

LLC formation statistics show a growing trend in new businesses being established as limited liability companies due to their flexibility and liability protection.

Last Updated: June 17, 2024

Written & Summarized by: Jannik Lindner

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In this post, we will explore the latest statistics surrounding LLC formations in the United States. From the significant increase in new business incorporations to the industries and states leading the way, these statistics provide valuable insights into the current landscape of entrepreneurship in America.

Statistic 1

"2 out of 3 businesses in America start as LLCs."

Statistic 2

"By December 2021, the number of business incorporations registered was 80.6% higher than December 2020."

Statistic 3

"29.7 million small businesses are registered as an LLC in the United States."

Statistic 4

"Since COVID-19 lockdown, there has been a 40% increase in the number of LLCs formed in the United States."

Statistic 5

"Texas was the state with the highest number of newly formed LLCs in 2020."

Statistic 6

"In 2019, over 1.5 million LLCs were formed in the U.S."

Statistic 7

"1 in 3 newly formed LLCs fail within the first three years."

Statistic 8

"By February 2021, over 4.35 million LLC formations were recorded."

Statistic 9

"The business sector with the most LLC formations in 2020 was Retail Trade."

Statistic 10

"22% of the LLCs formed in the U.S were in the construction industry in 2020."

Statistic 11

"Approximately 78.64% of all new businesses in Florida are LLCs as of 2021."

Statistic 12

"In quarter 3 of 2020, LLC formations had a surge of 77.4%, the highest quarterly increase since 2004."

Statistic 13

"Over 40% of the LLCs in the US are sole proprietorships."

The statistics provided indicate a significant trend towards LLC formation in the United States, with a notable increase in the number of businesses choosing to register as LLCs in recent years. Factors such as the impact of COVID-19, industry preferences, and state-specific trends seem to play a role in shaping these patterns. However, it is worth noting the high failure rate of newly formed LLCs within the first three years, suggesting the need for careful planning and risk management strategies for entrepreneurs considering this business structure.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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