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Rhode Island Ranked Worst State to Start a Business

Rhode Island Ranked Worst State to Start a Business

January 30, 2026

The state's high cost of doing business was the ranking's predominant factor

Not exactly a shocking revelation to employers like you bearing the brunt of harmful legislative policies, Rhode Island was listed as the worst state in the nation to start a business by WalletHub in their 2026 rankings. Several categories led to this unenviable position, but the high cost of doing business was the predominant factor.

Looking at the bills being filed for the 2026 legislative session, it seems like some lawmakers have no intention of improving that worst in the nation status. Bills were filed to raise taxes, increase the minimum wage, impose new labor mandates, drive up health costs, and cause energy bills to further skyrocket. If Rhode Island continues down this track, it will only solidify the title of worst in the nation for business.

From the Governor’s plan for a new 3% income tax surcharge to a climate super fund bill to indexing the state minimum wage, NFIB will continue to monitor and testify against the proposals this session that will harm small businesses. Please continue to check your inbox for opportunities to voice your concerns to policymakers and share how their legislative proposals may affect your bottom line as job creators along with the overall economy of the Ocean State.

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NFIB Rhode Island is here to serve our members, small business owners like you. The best way we can do that is hearing back from you so we know your preferences. Please take a moment to complete our brief survey about events. Events may include: legislative updates, roundtables with elected officials, business tours, regulatory compliance, and more.

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