📅 2026 Update: Key Changes in US Business Law

Since the original article was published, several important changes have occurred in US business law, particularly affecting how businesses operate and account for their taxes. This update outlines the most relevant changes that impact business formation, accounting methods, and CPA licensure. The earlier article continues further down the page for more foundational information.

📊 Changes in Accounting Requirements

Starting in tax year 2026, certain businesses must adopt the accrual method for federal tax purposes. This includes C corporations, partnerships with a C corporation as a partner, and tax shelters with average annual gross receipts exceeding $32 million. The accrual method records income when it is earned and expenses when they are incurred, regardless of cash movement.

📝 New CPA Licensure Pathways

Effective January 1, 2026, Minnesota offers new pathways to CPA licensure. This change allows for more flexibility among candidates seeking to become CPAs. Each state has its own board of accountancy that sets the specific requirements, making it essential for candidates to check local regulations.

⏳ Business Formation Processing Times

The processing times for business formation documents continue to vary by state. Typically, businesses can expect processing times to range from a few days to several weeks. Factors such as the method of filing, either online or by mail, can influence these times.

📅 Reporting Deadlines for Changes

Businesses must report any changes in their responsible party within 60 days by completing Form 8822-B. This form needs to be mailed to the address specified on it. Timely reporting is crucial to maintain compliance with federal regulations.

📌 Summary of Key Points

  • 📊 Accrual method required for certain businesses starting in 2026.
  • 📝 Minnesota offers new pathways for CPA licensure from January 2026.
  • ⏳ Processing times for business formation vary by state.
  • 📅 Businesses must report changes in responsible party within 60 days.

💡 Tips for Business Formation and Compliance

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

🏢 Choose the Right Business Structure

Selecting the right legal structure is critical for your business. This choice impacts taxes, liability, and paperwork. Common structures include sole proprietorships, partnerships, LLCs, and corporations.

🏷️ Register Your Business Name

Before submitting your formation documents, check your state's business name database. Your business name must be distinguishable from existing names already on file with the Secretary of State.

📝 Complete Necessary Forms

Most businesses require an Employer Identification Number (EIN) for tax identification. Additionally, employers must have employees fill out Form I-9 and Form W-4 for verification and withholding purposes.

📅 Stay Aware of Reporting Deadlines

Ensure you report any changes in your business's responsible party within 60 days using Form 8822-B. Timely reporting helps avoid penalties and maintains your business's good standing.

📚 Utilize Free Resources

Consider taking advantage of free resources offered by the Small Business Administration (SBA) and the IRS. They provide valuable information on starting and managing a business, including tax obligations.

🏆 Business Services Ranked by User Reviews (2026)

This section evaluates services related to business formation and compliance. The rankings are based on Trustpilot data collected in October 2026. While star ratings provide insights, they are only one aspect of customer satisfaction, as unhappy customers tend to post more reviews.

🥇 1. ZenBusiness

ZenBusiness has been rated 4.8 on Trustpilot. It is known for its business formation services, registered agent services, and compliance services. Some users mention occasional delays in processing times, but overall, it is well-regarded for helping new businesses get started efficiently.

🥈 2. LegalZoom

LegalZoom holds a 4.6 rating on Trustpilot. It offers business formation services, estate planning, and intellectual property registration. Despite its strong reputation, some users report delays in customer support response times, which can be a concern for those needing immediate assistance.

🥉 3. Bizee

Bizee averages 4.8 stars. It is recognized for its business formation services and compliance support. However, some users have pointed out issues with the user interface, which may affect ease of use for certain clients.

4️⃣ Rocket Lawyer

Rocket Lawyer has a Trustpilot rating of 4.5. It specializes in online legal services, document preparation, and legal advice. Some users find the subscription model less cost-effective for infrequent users, which could impact overall satisfaction for those who need occasional legal help.

5️⃣ LawDepot

LawDepot scores 4.0 on Trustpilot. It is known for creating legal documents, including business formation documents. However, some users report issues with document customization options, which can limit flexibility in document creation.

🆓 Free Government and Nonprofit Help

The Small Business Administration (SBA) offers free counseling and resources for entrepreneurs. Additionally, the IRS provides information to help new business owners understand their tax obligations. These resources can be beneficial for those starting a business without incurring extra costs.

🔎 What to Compare When Choosing Services

  • 🏢 Services offered (formation, compliance, etc.)
  • ⏳ Processing times and efficiency
  • 📝 Customer support availability
  • 📊 Pricing structure and hidden fees
  • ⭐ User reviews and overall satisfaction

❓ Frequently Asked Questions

❓ What is the accrual method of accounting?

The accrual method records income when it is earned and expenses when incurred, regardless of cash flow. This method is required for certain businesses starting in tax year 2026.

📅 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, depending on the filing method and state requirements.

🏷️ Why do I need an Employer Identification Number (EIN)?

An EIN is essential for tax identification purposes. Most businesses need one to comply with federal tax regulations.

📝 What forms do employees need to complete?

Employers must have all employees complete Form I-9 for employment eligibility verification and Form W-4 for withholding allowances.

📅 How do I report changes in my business structure?

Businesses must report changes in the responsible party within 60 days by completing and mailing Form 8822-B to the specified address.

🏢 What resources can I access for free?

The Small Business Administration (SBA) and the IRS provide free resources and counseling to help entrepreneurs understand business formation and tax obligations.

⚖️ Recent Cases Related to Business Law

Recent court rulings have addressed various aspects of business law, including formation and compliance issues that affect how businesses operate.

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

End of October 2026 Update





How the Law Handles Competition between Businesses

In business, competition between sellers within an open marketplace is beneficial for both businesses and consumers. Competition not only keeps prices lower and raises quality, but it also provides more choices and more reason to be innovative. In order to maintain this sense of competition between sellers, the Federal Trade Commission enforces the antitrust laws.

These laws were first created in response to many companies who concealed their business practices using trusts in the late 19th century, which threatened the free market.

·         The Sherman Act (1890)

Competition

o   Created to prevent potential cartels or monopolies that could be detrimental to having competition in a free market

o   The act does not allow companies to artificially raise the price

·         The Federal Trade Commission Act (1914)

o   Created the Federal Trade Commission which now regulates large corporations and stops them from having unfair trading practices

·         The Clayton Act (1914)

o   Prevents certain practices that could harm competition in free market, such as price discrimination or having an individual being a director on two companies in competition with each other.

While the anti-trust laws are applicable to most organizations, there are certain types that are exempt from the anti-trust laws, such as labor unions banks, and agricultural cooperatives.


The Federal Trade Commission still continues to monitor large corporations to ensure that no business practices occur that may harm the free market and healthy competition. The Federal trade Commission Monitors the following activities:


·         Mergers


o   While mergers can allow firms to operate more smoothly, mergers result in fewer options and possibly higher consumers.

·         Agreements Among Competitors

o   Businesses cannot conspire to raise prices, hinder other businesses from operating, or raising prices

o   The Federal Trade Commission pays close attention to potential artificial price fixing

·         Manufacturers and Product Dealers

o   There are some agreements, for example a car with a brand of tires that are acceptable, but others can be illegal if they restrict competition without providing customer benefits.

·         Monopolies

o   By excluding other companies or impairing their ability to compete, it can hurt the consumer by allowing them to control prices.

·         Other Anticompetitive Actions

By regulating major corporations, a free market can exist and competition is possible between sellers. However, there can be downsides to competition in the free market. It can potentially lead to increased costs and if waste if companies repeat ideas without innovation. In certain circumstances, competition is inefficient and a natural monopoly flourishes.