📅 2026 Update: Business Formation and Financing Insights

Since the original article about Berkshire and 3G Capital's acquisition of Heinz, several important changes have occurred in U.S. business law. These changes particularly impact corporate taxation, business formation, and small-business financing. Readers can find the original article further down on the page for more context.

🏢 Corporate Tax Reforms

The corporate tax rate remains at 21% as established by the Tax Cuts and Jobs Act (TCJA) of 2017. This rate applies to C-Corporations and has not changed since the original article. Businesses should consider the implications of this rate when planning their financial strategies.

📅 S-Corp Election Deadline

To elect S-Corporation status, businesses must file IRS Form 2553. This must be done within two months and 15 days after forming the corporation or at the start of a new tax year. This deadline has been consistent since the TCJA, highlighting the importance of timely filing for tax benefits.

💰 SBA Loan Fees

The U.S. Small Business Administration (SBA) still charges a guarantee fee for its loan programs. For SBA 7(a) loans, fees vary: loans with a maturity of less than one year have a fee of 0.25%, while those with a maturity of more than one year incur a fee of 3%.

These fees are subject to change, so businesses should check the SBA’s official website for current rates.

📄 Forms and Steps for Corporation Formation

To form a corporation, businesses must file Articles of Incorporation with the state business filing agency. This document includes key details like the corporation's name and purpose. Requirements can vary by state, so it's essential to know local regulations.

📌 Key Points to Remember

  • 🔍 Corporate tax rate remains at 21%.
  • 🗓️ S-Corp election deadline is two months and 15 days after formation.
  • 💵 SBA loan fees vary based on loan maturity.
  • 📝 Articles of Incorporation are required for forming a corporation.

💡 Tips for Business Formation and Financing

Review the details of your situation with an attorney to ensure compliance with current laws.

📄 Understand Your Formation Options

When considering how to structure your business, know the difference between C-Corporations and S-Corporations. C-Corps face corporate income tax and can have unlimited shareholders, while S-Corps allow for pass-through taxation and have restrictions on shareholders.

📅 Keep Track of Deadlines

Be aware of the deadlines for filing IRS Form 2553 for S-Corporation status. Missing this deadline can result in loss of tax benefits, so it's crucial to file on time.

💵 Explore SBA Loan Options

If seeking financing, consider SBA loans. They offer various options tailored for small businesses, including lines of credit and working capital loans. Understanding the specific eligibility requirements is vital for successful applications.

🔍 Utilize Free Resources

Take advantage of resources provided by the U.S. Small Business Administration (SBA). They offer free resources and counseling to help small businesses navigate financing options and eligibility requirements.

📝 Document Compliance

Ensure that your business complies with all legal requirements by keeping records up to date. This includes maintaining your Articles of Incorporation and any other necessary documents required by your state.

🏆 Business Formation Services Ranked by User Reviews (2026)

The following services help with business formation, registered agent services, and compliance, which are essential for starting a business. The rankings are based on Trustpilot data from October 2026. Keep in mind that star ratings are just one indicator; unhappy customers tend to leave more reviews, which can skew perceptions.

🥇 1. ZenBusiness

ZenBusiness has been rated 4.8. It is known for offering business formation services, registered agent services, and compliance services. Some users report delays in processing times and occasional issues with customer support responsiveness, but many appreciate its user-friendly interface and clear guidance.

🥈 2. IncFile

IncFile holds a Trustpilot score of 4.7. It is recognized for its business formation services and registered agent services. However, some reviewers mention limited customer support availability and occasional document processing delays, which can be a concern when timing is crucial.

🥉 3. Harvard Business Services

Harvard Business Services averages a Trustpilot score of 4.5. It is particularly known for Delaware LLC formation and compliance services. Users have reported delays in processing times and some customer support issues, but it remains a popular choice for its specialization.

4️⃣ LegalZoom

LegalZoom has been rated 4.6. It offers a range of services including business formation and legal document preparation. Some users have reported delays in processing times and customer service challenges, which can affect the overall experience when seeking help.

5️⃣ Bizee

Bizee has a Trustpilot score of 4.8. Known for its business formation and registered agent services, it receives positive feedback for its efficiency. However, some users have noted limited customer support availability and occasional document processing delays.

6️⃣ Rocket Lawyer

Rocket Lawyer has been rated 4.5. It specializes in legal document creation and business formation services. Some users find its subscription model costly, and there are occasional customization issues with documents, but many appreciate the breadth of legal assistance available.

🆓 Free SBA Resources

The U.S. Small Business Administration (SBA) provides free resources and counseling services for small businesses. Local SBA district offices and Small Business Development Centers (SBDCs) offer personalized assistance and guidance on financing options and eligibility requirements.

🔎 Factors to Compare in Business Formation Services

  • 📊 Trustpilot scores and user reviews
  • 📅 Processing times for document filings
  • 📞 Availability and responsiveness of customer support
  • 💼 Range of services offered
  • 💵 Pricing structures and any hidden fees

❓ Frequently Asked Questions

❓ What is the difference between a C-Corp and an S-Corp?

A C-Corporation is subject to corporate income tax and can have unlimited shareholders, while an S-Corporation allows income to pass through to shareholders, avoiding double taxation.

💰 What fees does the SBA charge for loans?

The SBA charges a guarantee fee that varies by loan amount and term. For example, SBA 7(a) loans with a maturity of less than one year have a fee of 0.25%, while those over one year have a fee of 3%.

📅 How long does it take to process an S-Corp election?

The IRS typically processes Form 2553 within 60 days. If filed late, the IRS may grant relief if there is reasonable cause for the delay.

🗓️ What are the requirements to form a corporation?

To form a corporation, you'll need to file Articles of Incorporation with your state's business filing agency. This document must include the corporation's name, principal place of business, purpose, and registered agent information.

🏢 How can I get free help with my business?

The SBA offers free resources and counseling services. Local SBA district offices and Small Business Development Centers (SBDCs) provide personalized assistance for small businesses.

📄 What is the S-Corp election deadline?

Businesses must file IRS Form 2553 within two months and 15 days after forming the corporation or at the start of a new tax year to elect S-Corporation status.

⚖️ Recent Court Cases Related to Business Formation

Several recent court rulings have impacted business formation and financing practices. These cases highlight issues related to corporate compliance, tax obligations, and financing agreements.

For more recent rulings, feel free to browse more rulings on the news page.

End of October 2026 Update






 



Buffet, the CEO of Berkshire Hathaway, announced on Thursday that it plans to purchase the food giant for roughly $23 billion, adding Heinz Ketchup to the conglomerate’s stable of respected brands.



The proposed purchase, which comes fast on the heels of a $24 billion buyout of computer giant Dell, points to a possible reemergence of the merger market. In addition to these two mammoth transactions, a number of smaller deals and the prices being paid for said companies mark a far cry from the exorbitant heights of the financial boom throughout the early and mid-2000’s. That said, an improving stock market, mounting piles of cash held by private equity firms and corporations, and growing confidence among the industry’s top players, point to a return of widespread deal-making.

Berkshire and 3G Capital Purchase Heinz for $23 Billion


Berkshire Hathaway is partnering with 3G Capital Management--a Brazilian investment firm that owns a majority stake in Burger King.



Under the terms of the transaction, 3G and Berkshire will pay $72.50 a share or roughly 20 percent above Heinz’s closing price on Wednesday. Including the company’s debt, the transaction is valued at approximately $28 billion.



Mr. Buffet, when talking to CNBC on Thursday morning claimed the deal and partner involved were “ideal.” Buffet praised Heinz as a company with fantastic brands and long-term stability.



Heinz fits Buffet’s deal criteria in several ways; the company has widespread brand recognition and long-term stability. Moreover, the company has performed well over the last year, rising nearly 17%.



Buffet told CNBC that he had been tracking Heinz since 1980; however, the genesis of the deal was pushed by 3G, an investment firm backed by numerous wealth Brazilian families.



One of the firm’s primary backers, Jorge Pablo Leman, brought the idea of purchasing Heinz to Berkshire two months ago. The proposal was well received as the two sides approached Heinz’s CEO, William R. Johnson, concerning the proposed purchase of the company.



3G and Berkshire will each contribute approximately $4 billion in cash to pay for the company, with Berkshire contributing an additional $8 billion for preferred shares. The rest of the cost will be covered through debt financing efforts by Wells Fargo and JP Morgan Chase.



The company’s headquarters will remain in Pittsburgh, PA where Heinz has called home for over 120 years. Heinz’s stock, in reaction to the news, rose nearly 20 percent in morning trading.