📅 2026 Update: Key Changes for Small Businesses

Since the original article was published, several important changes have occurred that affect small businesses in the U.S. These changes include updates to reporting requirements, tax laws, and compliance rules. The following sections detail the most relevant updates for small business owners today.

The earlier article continues further down the page.

🏢 Corporate Transparency Act Changes

In March 2025, the Financial Crimes Enforcement Network (FinCEN) made significant updates to the Corporate Transparency Act (CTA). They exempted U.S.-formed companies from beneficial ownership reporting requirements. This exemption became permanent in August 2026, easing reporting burdens for many small businesses.

📜 FTC Noncompete Rule Update

The Federal Trade Commission (FTC) saw a major change in February 2026 when it removed its 2024 rule that banned most worker noncompete agreements. This decision aligns with court rulings that had previously blocked the rule nationwide. Small business owners may find this change affects their hiring practices and employee agreements.

💰 Tax Law Adjustments

In 2025, new tax laws expanded the startup stock exclusion for small businesses. For stock issued after July 4, 2025, the federal exclusion on qualified small business stock increased to 50% after a three-year hold and 100% after five years. The cap per taxpayer rose from $10 million to $15 million, which could benefit many small business owners.

📊 Small Business Lending Rule Changes

The Consumer Financial Protection Bureau (CFPB) finalized updates to its small business lending data collection rule in May 2026. The new rule defines a "small business" as one with gross annual revenues of $1 million or less. This change will affect financial institutions that originated at least 1,000 covered transactions for small businesses in 2026 and 2027.

📌 Key Takeaways for Small Business Owners

  • 🏢 Corporate Transparency Act: Exemption from beneficial ownership reporting is now permanent.
  • 📜 FTC Noncompete Rule: Most worker noncompete agreements are no longer banned.
  • 💰 Tax Law: Increased startup stock exclusion could benefit small business owners.
  • 📊 Lending Rule Changes: New definition of a small business impacts lending data collection.

💡 Tips for Small Business Owners

Review your unique situation with an attorney to understand the implications of these changes on your business.

📋 Understand the Corporate Transparency Act

Be aware of the Corporate Transparency Act's reporting requirements, especially the recent exemptions. This can simplify compliance for many small business owners.

📈 Monitor Tax Law Changes

Stay updated on tax law changes, particularly those affecting startup stock exclusions. These laws can significantly impact your financial planning and investment strategies.

📝 Review Employee Agreements

With the removal of the FTC's noncompete rule, it's essential to review your employee agreements. Consider how this change might affect your hiring and retention strategies.

📊 Comply with New Lending Rules

If your business is involved in lending or receives loans, familiarize yourself with the CFPB's updated lending data collection rules. Ensure compliance to avoid potential penalties.

🆓 Utilize Government Resources

Take advantage of free resources, like the U.S. Department of Labor's Small Entity Compliance Guide. These can assist you in understanding your obligations and maintaining compliance.

🏆 Services Ranked by User Reviews (2026)

This section highlights services relevant to small businesses, focusing on payment processing, business insurance, and support tools. The list is based on Trustpilot data from October 2026. Remember, scores can change over time, and unhappy customers often leave more reviews, affecting averages.

🥇 1. Square

Square has been rated 3.6. It is known for easy-to-use payment processing and an integrated point-of-sale system. However, some users report issues with transaction fees and customer support challenges.

🥈 2. Simply Business US

Simply Business US holds a Trustpilot score of 4.5. It is recognized for its knowledgeable and supportive staff, along with affordable pricing options. Some customers experience difficulty reaching customer support over the phone.

🥉 3. ZenBusiness

ZenBusiness has an impressive score of 5.0. Reviewers appreciate its helpful, patient, and knowledgeable staff, along with fast response times. However, users have noted slow support response times and challenges in canceling ongoing service subscriptions.

4️⃣ ShipBob

ShipBob has a Trustpilot score of 4.0. It is known for efficient order fulfillment and a user-friendly platform. Some customers have reported issues with customer support and occasional delays in shipping.

🆓 Free Government Resources

Small business owners can access free resources, such as the U.S. Department of Labor’s Small Entity Compliance Guide. This guide helps businesses understand their obligations under various labor laws.

🔎 What to Compare When Choosing Services

  • 💳 Payment Processing Fees: Look at transaction fees and service costs.
  • 📞 Customer Support: Consider responsiveness and availability of support.
  • 📋 User Experience: Check for ease of use and integration with your current systems.
  • 📊 Reputation: Review customer feedback and ratings on platforms like Trustpilot.

❓ Frequently Asked Questions

❓ What is the Corporate Transparency Act?

The Corporate Transparency Act requires certain companies to report their beneficial owners. Recent changes have exempted U.S.-formed companies from these reporting requirements.

💼 How do recent tax law changes affect small businesses?

The 2025 tax law expanded the startup stock exclusion, increasing potential benefits for small business owners. This allows for a higher exclusion on qualified small business stock under specific conditions.

📊 What is the new definition of a "small business" for lending?

The CFPB's final rule defines a "small business" as one with gross annual revenues of $1 million or less. This change impacts small business lending data collection requirements.

📅 Are there deadlines for compliance with the new lending rules?

Yes, compliance dates were extended. Lenders must collect data by specific dates based on their volume of small business loans, starting from July 2025 to October 2026.

📞 How can I access government resources for small business compliance?

Small businesses can utilize resources like the U.S. Department of Labor’s Small Entity Compliance Guide. This guide offers assistance in understanding labor law obligations.

📜 What should I know about the removed FTC noncompete rule?

The FTC removed the noncompete rule in February 2026, which may impact how small businesses handle employee agreements. It's important to review contracts to align with current regulations.

⚖️ Recent Cases Related to Small Business

Recent court rulings have influenced various aspects of business operations, including labor laws and compliance issues. These changes may impact how small businesses operate and interact with employees.

For more information on recent rulings, visit more rulings on the news page.

End of October 2026 Update





The Better Business Bureau (BBB), is an organization which deals with business ethics issues and other related concerns. The BBB has moved into the modern, digitally-driven age by establishing an online presence in the form of the Better Business Bureau online webpage at bbb.org.

This site can be referred to regarding questions and concerns arising generally from business ethics issues wherever the Better Business Bureau organization are based. Alternately, people can consult the two specific bbb.org destinations created for the United States and Canada as the body’s two homes, depending on their location and the nature of their complaint.

In that the Better Business Bureau online presence follows the general mission of the organization as providing for locally-based needs first, bbb.org resources are created to address the business ethics issues of a particular company or area out of which a company is based.

Find the Better Business Bureau Online

In this regard, people may register concerns as to how their local branch of the Better Business Bureau is providing for business ethics concerns by posting relevant complaints on their corresponding bbb.org chapter website. These complaints can then be placed for public viewing on the Better Business Bureau online “Reliability Report” Board resource.

In order to locate the geographically specific Better Business Bureau online services relevant to their needs, people can enter a bbb.org web address into their browser’s address bar beginning with the name of the specific name of the location, followed by bbb.org. People can also refer to complaint.bbb.org in order to directly register a complaint concerning a business organization.