📅 2026 Update: Changes Affecting Money Market Accounts and Mutual Funds

Since the original article was published, there have been important updates that affect business operations and financial practices in the U.S. Notably, changes in tax rules and CPA licensure pathways are significant for those involved in business finance. The earlier article continues further down the page and offers foundational insights on money market accounts and mutual funds.

🧾 New Accrual Basis Accounting Requirement

Starting in tax year 2026, certain businesses must use the accrual method for federal tax purposes. This applies to C corporations, partnerships with a C corporation as a partner, and tax shelters with average annual gross receipts exceeding $32 million. This method records income when earned and expenses when incurred, impacting how businesses report their earnings and manage cash flow.

📜 Changes in CPA Licensure in Minnesota

Effective January 1, 2026, Minnesota has introduced multiple pathways for CPA licensure. This flexibility can help more individuals enter the accounting field, which is essential for businesses looking for financial guidance. Different requirements exist across states, impacting how businesses find qualified accountants.

⏳ Business Formation Processing Times

The time it takes to process business formation documents can vary significantly by state. Processing times can range from a few days to several weeks, depending on the method of filing. Understanding these timelines is crucial for businesses as they navigate their formation and compliance processes.

💵 Current Business Formation Filing Fees

Filing fees for forming a business entity, such as an LLC or corporation, generally range between $50 and $300, depending on the state. These costs are vital for entrepreneurs to consider when planning their business budgets, as they can impact overall startup expenses.

📌 Key Points to Remember

  • Accrual accounting is now required for larger businesses starting in 2026.
  • Minnesota offers more pathways for CPA licensure from January 2026.
  • Business formation processing times can vary; plan accordingly.
  • Filing fees for forming a business entity range from $50 to $300.

💡 Tips for Managing Business Finances

Review the details of your situation with your attorney to ensure compliance with all current laws and regulations.

📊 Understand Your Accounting Method

Be aware of the new accrual accounting requirement if your business exceeds $32 million in average gross receipts. This method helps provide a more accurate financial picture but may complicate cash flow management.

🏢 Explore CPA Options

If you are in Minnesota, familiarize yourself with the new pathways to CPA licensure. This change can help you find qualified accountants who can better meet your business's financial needs.

📝 Keep Track of Filing Fees

Always check your state’s specific filing fees for business formation. Budgeting for these costs upfront can help prevent financial surprises later.

📅 Monitor Processing Times

When filing formation documents, keep an eye on processing times. This understanding will help you plan your business launch and operations effectively.

🔍 Utilize Free Resources

Take advantage of free resources from the Small Business Administration (SBA) and the IRS. They provide valuable information and support for new business owners.

🏆 Business Services Ranked by User Reviews (2026)

This section highlights various services that assist with business formation, compliance, and other needs tied to money market accounts and mutual funds. The order follows Trustpilot ratings as of October 2026, noting that scores can change over time. Ratings are just one signal of service quality, as experiences can vary widely among users.

🥇 1. LawDepot

LawDepot has been rated 4.0. It is known for its legal document creation, including business formation documents. However, some users report challenges with document customization options, which could affect how well the service meets unique business needs.

🥈 2. ZenBusiness

ZenBusiness holds a 4.8 rating. It specializes in business formation services, registered agent services, and compliance solutions. Users appreciate its efficient processing, but some mention occasional delays, which can be a concern for those needing fast service.

🥉 3. LegalZoom

LegalZoom has an impressive 4.6 rating. It is recognized for its business formation services, estate planning, and intellectual property registration. While many users find it helpful, some have reported delays in customer support responses, which could impact timely assistance.

4️⃣ Bizee

Bizee averages 4.8. It is known for business formation services and compliance support. Users often highlight its ease of use, though some mention issues with the user interface that could hinder the overall experience.

5️⃣ Rocket Lawyer

Rocket Lawyer has a 4.5 rating. It offers online legal services, document preparation, and legal advice. While many users find its subscription model beneficial, some feel it may not be cost-effective for infrequent users.

🆓 Free Government and Nonprofit Options

The Small Business Administration (SBA) provides free business counseling and resources to help entrepreneurs start and grow their businesses. Additionally, the IRS offers resources to assist new business owners in understanding their tax obligations.

🔎 What to Compare When Choosing a Service

  • 📄 Document creation options
  • ⏰ Processing times for business formation
  • 📞 Customer support responsiveness
  • 💵 Overall costs and fees
  • 🔍 User reviews and experiences

❓ Frequently Asked Questions

❓ What is the accrual method of accounting?

The accrual method records income when earned and expenses when incurred, regardless of cash flow. For tax year 2026, specific businesses must adopt this method.

📅 How do I change the responsible party for my business?

To report changes in the responsible party, complete Form 8822-B within 60 days and mail it to the address specified on the form.

💼 What are the benefits of using a CPA?

A CPA can provide valuable financial advice, assist with tax planning, and ensure compliance with regulations. This can be essential for businesses looking to manage their finances effectively.

📊 Are there any free resources for new business owners?

Yes, the SBA and IRS offer free resources and counseling to assist new business owners in understanding their obligations and navigating the startup process.

🏢 How long does it take to form a business?

Processing times for business formation documents vary by state and can range from a few days to several weeks. Check with your state’s requirements for specifics.

💵 What are typical filing fees for business formation?

Filing fees generally range from $50 to $300, depending on the state and type of business entity. It's important to budget for these costs when starting a business.

⚖️ Recent Cases Affecting Business Practices

Recent court rulings have clarified various aspects of business law, impacting how businesses operate and manage finances. These changes can directly affect your compliance and operational strategies.

For more information, you can browse more rulings on the news page.

End of October 2026 Update





Although money market accounts and mutual funds are for the most part conservative capital investments, there are innate differences between the two financial instruments. The major difference between mutual funds and a money market account is the risk associated with them.

Depending on the type of investment, a mutual fund carries varied risks. For instance, a mutual fund that invests in equities only is risky because of the intertwined relationship to the stock market. If the stocks under-perform, the individual will incur a net loss in their investment.

Mutual funds that invest in bonds and fixed-income instruments are more closely related to money market funds in that they both guarantee a rate of return. However, these types of mutual funds are susceptible to fluctuations in interest rates and are not fully guaranteed.

Comparing Money Market Accounts and Mutual Funds

Another major difference between a mutual fund and a money market account is that a mutual fund is not insured by the FDIC. Even mutual funds that invest in money markets are not insured. The investor's principal is always at risk, granted short-term debt instruments involved with the government or AAA rated corporations rarely default. 

The fundamental difference found between the two financial instruments stems from the structure of the products. The typical mutual fund is a hand-selected basket of equities, chosen by a financial manager. The mutual fund is comprised of multiple stocks that incorporate numerous risks and exposures to various sectors of the market. The rates of return fluctuate based on the performance the stocks within the fund.

In contrast, a money market account is a conservative, fully-insured fixed-income investment. A money market account is a short-term loan given to government agencies or highly stable corporations. The investor makes a profit through the repayment of the loans and the interest rate attached to them.