Tennessee entrepreneurs launched businesses at a record pace during the first three months of 2026, with Hamilton County ranking fourth in the state for new business filings as overall business creation reached its highest first-quarter level in more than three decades.
The state recorded 24,852 new business entity filings during the first quarter, a 20.6% increase from the same period last year and the highest first-quarter total since the state began tracking the data in 1993.
Hamilton County recorded 1,204 new business filings during the quarter, placing fourth statewide behind Davidson, Knox and Shelby counties. The county posted a 15.4% year-over-year increase in filings, with 3.1 new businesses formed per 1,000 residents.
Davidson County led the state with 4,095 new filings, followed by Knox County with 2,813 and Shelby County with 2,484. Together, the top four counties accounted for 10,596 new businesses – 42.6% of all new entity filings statewide.
While the state’s four largest counties continued to generate the largest share of new businesses, growth was faster elsewhere. New business filings increased 21% across Tennessee’s other 91 counties, compared with a combined 20.1% increase among Davidson, Knox, Shelby and Hamilton counties.
Limited liability companies continued to dominate new business formation. Domestic LLC filings jumped 24.9% from a year earlier to 19,535, accounting for the vast majority of new businesses created during the quarter.
Domestic nonprofit corporations increased 10.7%, while foreign entities grew 8.4% and domestic for-profit corporations rose 2.5%.
The surge wasn’t limited to startups.
Businesses already operating in Tennessee filed a record 241,706 annual reports during the quarter. Domestic LLC renewals climbed 37.5%, nonprofit corporation renewals increased 27.2%, domestic for-profit corporation renewals rose 24.9% and foreign entity renewals grew 20.6%.
Secretary of State Tre Hargett credits Tennessee’s business climate for the continued growth.
“Our state leaders work diligently to offer a welcoming business environment that supports jobs and opportunities,” Hargett says in a statement. “Tennessee’s recipe of lower taxes, light regulations and responsible fiscal management is why people from across the country continue to move here.”
The report, produced through a partnership between the Secretary of State’s Office and the University of Tennessee’s Boyd Center for Business and Economic Research, says strong business formation has historically been a leading indicator of future job growth, personal income gains and increased tax revenue.
“The entrepreneurial spirit in Tennessee shines through in this record-breaking level of both new entity and annual report filings,” Boyd Center Director Don Bruce says. “Our state continues to be a hot spot for new businesses, which creates more jobs and a stronger tax base.”
The report also highlights continued population growth as another factor supporting Tennessee’s economy.
The state’s population grew by nearly 64,000 residents in 2025, reaching 7.32 million. Tennessee ranked fourth nationally in net domestic migration – people moving into the state from elsewhere in the United States minus those leaving – and fifth when measured as a share of population.
Overall, 81 of Tennessee’s 95 counties gained population last year, with Davidson County posting the largest numerical increase.
Researchers say Tennessee’s growth has moderated from the extraordinary pace seen immediately after the pandemic but remains well above national averages.
The state’s broader economy also continued to show positive signs during the quarter. Tennessee’s unemployment rate stood at 3.6% in May, below the national rate of 4.3%, while nonfarm employment increased by 5,700 jobs from the previous month. State tax revenues also climbed 14.4% compared with May 2025.
Sources: the office of Tennessee Secretary of State Tre Hargett; the Q1 2026 Tennessee Quarterly Business and Economic Indicators report