Comparable baseline
Washington at a glance
| Population | 8,001,020 | July 1, 2025; +3.5% since 2020 |
|---|---|---|
| Business applications | 9,885 | July 2026, seasonally adjusted |
| Trailing-12-month applications | 117,106 | 1,463.6 per 100,000 residents |
| High-propensity applications | 2,888 | 29.2% of July applications |
| Projected employer formations | 849 | Census four-quarter projection for July's cohort |
| Small businesses | 695,695 | SBA 2025 profile; underlying employer and nonemployer data are from 2022 |
| Small-business employment | 1,451,617 | 48.7% of private employment in 2022 |
| Employer establishments | 202,177 | 2023 County Business Patterns |
Application rankings cover the 50 states and use unrounded figures. Applications are qualifying EIN filings, not confirmed business openings. Measurement years differ because federal datasets are released on different schedules.
Washington recorded the sharpest trailing-year decline in business applications among the 50 states. The Census Bureau counted 117,106 applications from August 2025 through July 2026, 19.6% fewer than in the preceding 12 months. July also fell 4.9% from a year earlier.
This is evidence of declining application activity, not proof of a broader business contraction. The series counts qualifying EIN applications; it does not measure closures, employment losses, output, or recession. Its employer-oriented classification and projection measures also remained comparatively high despite the falling volume.
The decline appears in both current windows
Washington recorded 9,885 seasonally adjusted applications in July 2026, down 3.1% from June as well as 4.9% from July 2025. The state ranked 49th for July year-over-year growth and 50th for trailing-year growth. Both current windows point in the same direction.
The application level remained above the comparable pre-pandemic month: July 2026 was 67.7% above July 2019. Washington can therefore have a steep recent decline and still operate from a higher level than seven years earlier. Neither comparison establishes an all-time high or low.
After adjusting for population, July’s rate was 123.5 applications per 100,000 residents, rank 39. The trailing-year rate was 1,463.6, rank 33. Raw July volume ranked 18th, showing how Washington’s large population changes the comparative picture.
The decline is also large in absolute terms: the preceding trailing-year total was 145,729, compared with 117,106 most recently. Publishing both totals keeps the 19.6% change grounded and avoids making a rank carry the entire story.
Fewer applications, but a more employer-oriented mix
Census classified 2,888 July applications as high propensity, 29.2% of the total and rank ten. Its model projected 849 employer formations within four quarters, equal to 8.59 per 100 applications and second among states.
The 8.59 figure is a projection, not an observed conversion or success rate.
King County remains the employment center
Washington’s 2023 County Business Patterns data counted 202,177 employer establishments and 3,056,235 employees. King County held 1,305,947 employees, or 42.7% of the state total. Pierce County held 294,765 and Snohomish County 283,649. Together, the three Puget Sound counties accounted for 61.7%.
The three-county concentration ranked tenth-highest among states. It makes the Puget Sound region central to any statewide employer account, while leaving more than one-third of measured employment elsewhere. CBP measures workplace jobs, not worker residence or company headquarters.
Health care and social assistance was the largest sector at 499,464 employees. Retail trade employed 340,694 and accommodation and food services 306,631. Each sector’s employment share was close to its 50-state counterpart, so the leading-sector list does not supply a strong specialization claim.
Small businesses account for nearly half of private employment
The SBA profile reports 695,695 small businesses using underlying 2022 data: 162,014 small employer firms and 533,681 nonemployer establishments. Nonemployers made up 76.7% of the total, the fifth-lowest share among states. Small employer firms provided 1,451,617 jobs, or 48.7% of private employment and rank 19.
Official Washington business resources
- The Secretary of State explains how to start or register a business entity.
- The Department of Revenue handles the business-license application, UBI assignment, and applicable tax registration.
- Washington’s Small Business Guide provides cross-agency steps and a licensing wizard.
- The Washington SBDC offers confidential statewide advising at no cost.
Source and calculation note
July counts use the seasonally adjusted July 2026 BFS release. The trailing-year total sums unadjusted applications from August 2025 through July 2026 and compares them with August 2024 through July 2025. Rates use Washington’s July 1, 2025 population estimate; ranks compare 50 states using unrounded figures. Small-business measures use 2022 SBA profile components, and county/industry employment uses 2023 CBP. Sources were retrieved or checked September 3, 2026.