📅 2026 Update: Changes in Business Law and Accounting

Since the article was written, several important updates have taken place in U.S. business law and accounting rules. These changes can affect how businesses operate and file taxes. The earlier article continues further down the page, detailing the court case and its implications.

📊 Changes in Accounting Methods

For tax year 2026, certain businesses must use accrual basis accounting. This requirement affects C corporations, partnerships with a C corporation as a partner, and tax shelters with average annual gross receipts over $32 million. Under accrual accounting, businesses record income when earned and expenses when incurred, regardless of cash flow.

👩‍🎓 CPA Licensure in Minnesota

Starting January 1, 2026, Minnesota introduced multiple pathways to CPA licensure. This aims to provide more flexibility for candidates. Potential CPAs can choose the route that best fits their education and experience levels, which may help increase the number of qualified accountants in the state.

📄 Business Formation Fees

Filing fees for forming a business entity, such as an LLC or corporation, vary by state. Typically, these fees range between $50 and $300. Business owners should consider these costs when planning their initial budget and expenses for starting a new company.

⏳ Processing Times for Business Formation

Processing times for business formation documents differ by state. Generally, it can take a few days to several weeks to complete formation, depending on the chosen filing method. Business owners should account for these timelines when planning their launch.

📌 Key Takeaways

  • Accrual accounting is required for certain businesses in 2026.
  • Minnesota offers new CPA licensure pathways.
  • Filing fees for business formation typically range from $50 to $300.
  • Processing times for business documents can vary widely by state.

💡 Tips for Starting and Running Your Business

Before moving forward, it's important to evaluate your specific situation with an attorney.

📝 Understand Your Accounting Method

Choose between accrual and cash accounting based on your business size. For 2026, if your average annual gross receipts exceed $32 million, you must use the accrual method.

🔍 Research Business Formation Costs

Filing fees vary by state, usually between $50 and $300. Be sure to check your state's specific costs before starting the formation process.

📈 Prepare for Processing Times

Expect processing times for business formation documents to range from a few days to several weeks. Understanding these timelines can help you plan your business launch effectively.

📜 Complete Required Forms

When hiring employees, ensure you have them complete Form I-9 and Form W-4. These forms are essential for verifying employment eligibility and determining tax withholdings.

📅 Report Changes Promptly

If there are changes in your business's responsible party, complete Form 8822-B within 60 days. This ensures that the IRS has updated information about your business.

📚 Utilize Free Resources

Explore free resources from the Small Business Administration (SBA) and the IRS. They offer valuable information and guidance for new business owners.

🏆 Top Services for Business Formation and Support, Ranked by User Reviews (2026)

This section highlights services for business formation and related support, which are relevant to the topic of starting and running a business. The order is based on Trustpilot data from October 2026, and while star ratings provide insight, they reflect only part of customer satisfaction.

🥇 1. LegalZoom

LegalZoom has been rated 4.6. It is known for its business formation services, along with estate planning and intellectual property registration. However, some users report delays in customer support response times, which may affect your experience.

🥈 2. Bizee

Bizee holds a 4.8 rating. It is recognized for its business formation, registered agent, and compliance services. While many users praise its efficiency, there are occasional mentions of issues with the user interface that could impact usability.

🥉 3. Rocket Lawyer

Rocket Lawyer averages a score of 4.5. Known for online legal services, document preparation, and legal advice, it caters to various business needs. Some reviewers find the subscription model less cost-effective for those who do not need frequent legal assistance.

4️⃣ LawDepot

LawDepot has a Trustpilot score of 4.0. It specializes in legal document creation, including business formation documents. Some users express concerns regarding the customization options available for their documents, which could limit flexibility.

5️⃣ ZenBusiness

ZenBusiness is rated 4.8. It offers business formation services, registered agent services, and compliance support. While many users are satisfied, a few mention delays in processing times that you may want to consider.

🆓 Free Government and Nonprofit Resources

The Small Business Administration (SBA) provides free business counseling and resources to help entrepreneurs. The IRS also offers materials that guide new business owners on tax obligations without cost.

🔎 What to Compare When Choosing a Service

  • 📊 Service offerings: Check for business formation and ongoing support.
  • 💰 Costs: Review fees for formation and ongoing services.
  • ⏱️ Processing times: Understand how long it will take to complete your filings.
  • 📝 Customer reviews: Look for feedback on support and service quality.
  • 🔄 Flexibility: Ensure the service can adapt to your business needs.

❓ Frequently Asked Questions

🤔 What is accrual basis accounting?

Accrual basis accounting records income when earned and expenses when incurred. This method is required for certain businesses starting in 2026, particularly those that exceed $32 million in average annual gross receipts.

📅 How do I form an LLC?

To form an LLC, you need to file formation documents with your state. Filing fees generally range from $50 to $300, depending on the state.

🏢 What permits do I need to operate a business?

Most businesses need at least three types of authorization: a registered business entity, local permits, and any industry-specific licenses required at the state or federal level.

🔍 How can I verify employee eligibility?

Employers must have all employees complete Form I-9 to verify their eligibility for employment. This form must be kept on file for each employee.

📆 How long does it take to process business formation documents?

Processing times for business formation documents vary by state and can take anywhere from a few days to several weeks. The method of filing can affect the speed of processing.

📋 What should I do if my responsible party changes?

If there’s a change in your business's responsible party, you must complete Form 8822-B within 60 days. This ensures that the IRS has the correct information regarding your business.

⚖️ Recent Cases Related to Business Law

Recent court rulings provide insight into business law and its implications for entrepreneurs and business owners. These cases often highlight the importance of compliance and ethical practices in business operations.

You can browse more rulings on the news page for recent developments in business law.

End of October 2026 Update






On September 19, 2012, the US Attorney’s Office in the Northern District of Illinois reported that Chunlai Yang pleaded guilty of two counts theft of trade secrets after working for CME Group for 11 years. 



Yang admitted to downloading over 10,000 files of CME source code which provide significant amounts of information about the Globex electronic trading platform.  The U.S. Attorney’s Office states that Yang made plans “to improve an electronic trading exchange in China as well.  All in all, the government estimates the potential loses between $50 million and $100 million, and Yang is arguing the potential losses were under $55.7 million. 



During his time at CME Group, Yang was responsible for writing code.  Because of his position, Yang had access to programs that maintained the Globex electronic trading platform.  The software programs were property of CME Group, but Yang had proceeded in downloading manuals and instructions on how the computer files operate. 

CME Group Software Engineer Guilty of Stealing Trade Secrets


The U.S. Attorney’s Office concludes that Yang and two unnamed business affiliates were planning to open a business in China called the Tongmei Futures Exchange Software Technology Company (Gateway).  The purpose of the company was to increase trade volume to the Zhangjiagang Exchange, a Chinese chemical electronic trading exchange.  Yang was as far as contract negotiations with the Shangjigang Free Trade Board. 



Yang faces a maximum penalty of 10 years in prison and a $250,000 for each count.  The plea agreement will place Yang in prison for 70 to 87 months.  The sentencing is scheduled for February 20, 2013.



In addition, Yang agreed to forfeit his personal computers, electronic storage equipment, and more.  The personal computers and USB equipment contained the files he stole from CME Group. 



The United States is being represented Assistant United States Attorneys Barry Jonas and Paul Tzur. 



Source: Federal Bureau of Investigation