Connecticut Named One of the Most Expensive States for Starting a New Business

Looking to start a business here in the Nutmeg State? Good luck. A new study from Top Marketing Agency Inc. found that Connecticut ranks among the Top 10 most expensive states in America for new startups.

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According to the report, titled “The American Dream Comes at a Price,” launching a business anywhere in the U.S. has gotten tougher thanks to inflation, high energy bills, and rising taxes. But in Connecticut, the costs hit especially hard.

The state came in sixth overall, dragged down by the third-highest property tax rate at 1.5 percent and the third-highest average electric bill at $193. Combine that with a high cost of living and steep business expenses, and it’s no wonder so many entrepreneurs end up feeling broke before they even open the doors.

To be fair, Connecticut’s economy looks great on paper, with a GDP of $7,824 per 100,000 people and an average income of $76,050. But that same wealth drives up wages, rents, and utilities, making it one of the hardest places in the country to get a new business off the ground.

Here are the Top 10 most expensive states for startups, according to the study:

1. New Jersey
2. New York
3. California
4. Massachusetts
5. Illinois
6. Connecticut
7. Minnesota
8. Vermont
9. Washington
10. Maryland

A spokesperson for Top Marketing Agency summed it up simply: “Entrepreneurs today face a tough choice — pay more for opportunity or save money but limit potential.”

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So yeah, the American Dream is still alive in Connecticut — it just comes with a $193 electric bill and a few layers of red tape. Looks like I’ll have to open my restaurant somewhere else. If Uncle BF’s Liquor & Chicken Skins is ever going to stand a chance, Connecticut probably isn’t the place to launch it.