Business Applications Increase in June

A timely measure that serves as a possible indicator of future business formations is business applications. This monthly report highlights new business applications for tax ID numbers (“applications for an Employer Identification Number (EIN) through filings of the IRS Form SS-4).

In June 2026, total business applications increased by 1.1 percent versus May to 531,423. Also, high-propensity business applications – that is, applications most likely to become businesses with payrolls – increased by 1.9 percent to 149,714.

Indeed, the post-pandemic strength in business applications continues, including a pick-up over the past three months.

Source: Federal Reserve Bank of St. Louis, Fred

Business applications data remain the most optimistic estimate for where entrepreneurship, startups, and, therefore, the economy might be headed. But applications, of course, must be transformed into actual businesses.

The various data and trends on actual business creation show mixed but generally positive results, with self-employment (or fulltime entrepreneurship) stagnating, employer firms up some (a long data lag), nonemployer firms growing, and business establishment births up.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.