New Gusto research finds the biggest barrier to starting a business is not knowing where to start
More people are choosing to be their own boss than at any point in the past two decades. Last year, entrepreneurs in the U.S. filed a record 5.7 million applications to start new businesses, the most the Census Bureau has ever recorded. More than half of U.S. adults, over 140 million people, have seriously considered starting one, and one in five are actively building a business right now, according to a new survey conducted by Morning Consult on behalf of Gusto.1 Entrepreneurship is no longer a niche aspiration. It's becoming a mainstream career path.
That’s why today, Gusto is expanding beyond its payroll, benefits, and compliance platform into business formation and banking products, helping entrepreneurs form their company, register for an EIN, and open a business bank account in a single guided flow.2 It's the first time in Gusto's 15-year history that the platform will support owners just starting their journey, not just those who need to pay their teams or themselves run payroll. These capabilities are in early beta and will roll out to more entrepreneurs in the coming months.
The real barrier isn't money, it's not knowing where to start
Aspiring business owners often don't know where to start. They often don't know how and why they should incorporate their business, why registration can simplify tax filing, and they often combine personal and business funds in personal bank accounts.
Our research found that process and knowledge gaps are among the leading obstacles to getting started.1 When asked why they had not moved to start a business, 28% of respondents cited a process or knowledge barrier. This gap also leads to a misunderstanding of how much time it takes to overcome these barriers: aspiring owners expect 50 hours of administrative work where owners who recently launched businesses report spending about half as much time to get started.
While access to capital matters, simply knowing where to begin matters more. Absorbing that complexity, so entrepreneurs don't have to carry it themselves, is exactly what Gusto is built to do.
Starting a Business with Gusto: From Formation to Banking
Gusto helps small businesses start, run and grow – and business formation and banking is where that support now begins.2 Starting and running a business on the same platform that later runs payroll, HR, benefits, and more means an owner grows on the same platform, never having to explain their business from scratch to a new platform, or wonder whether the piece they just set up will connect to the next one. Here's what the new experience includes:
Company formation. Entrepreneurs can form their business directly through Gusto.
EIN registration. Gusto guides owners through registering for a federal EIN as part of the same flow.
A day-one business bank account2: no lengthy application, no branch visit, no minimum balance.
Understand your cash flow. An updated Money Dashboard brings finances into one view including cash balance, what's coming in, what's going out, and what's coming up next.
A direct line into payroll. The moment an owner hires their first employee, payroll runs in the same product you’re already using. Nothing to connect, nothing to import, nothing new to learn.
Starting a business shouldn't require an entrepreneur to become an expert in formation, tax law, or banking overnight. That's the point: Gusto takes on that complexity so entrepreneurs can spend their time growing the business, not learning how to start one.
Growing alongside the next generation of entrepreneurs
Two-thirds of Gen Z and Millennials say they want to own a business.1 As these generations move further into their careers, the businesses they build will shape where people work and how new jobs get created for decades to come. Gusto intends to grow alongside them, from the first decision they make to every one that follows.
Explore everything we announced at Gusto’s Fall Showcase, including the new products and features built to help you start and grow with confidence.
1 Survey of U.S. adults, conducted by Morning Consult on behalf of Gusto or commissioned by Gusto in September 2026
2 Gusto is a financial technology company, not a bank. Banking services provided by Increase Bank, Member FDIC.
