📅 2026 Update: Key Changes in Business Law and HR Practices

Since the original article on Human Resources was published, significant updates have occurred in U.S. business law that impact how businesses operate. These changes affect everything from tax requirements to CPA licensure pathways. Below, you'll find the latest updates that are most relevant to starting and running a business, as well as managing human resources.

🧾 New Accounting Method Requirements

For the tax year 2026, certain businesses must now use the accrual method for federal tax purposes. This affects C corporations, partnerships with a C corporation as a partner, and tax shelters with average gross receipts exceeding $32 million. Businesses must record income when earned and expenses when incurred, regardless of cash flow.

📋 Easing CPA Licensure in Minnesota

Starting January 1, 2026, Minnesota has introduced multiple pathways for CPA licensure. This change aims to provide flexibility for candidates, making it easier for aspiring accountants to meet the requirements. Each state has its own board of accountancy that sets the rules for licensure.

⏳ Business Formation Processing Times

Processing times for business formation documents can vary widely by state. Depending on the method—such as filing online or via mail—these times can range from a few days to several weeks. Businesses should plan accordingly to ensure timely formation.

📝 Essential Forms for Employers

New businesses must ensure they have all employees complete Form I-9 for Employment Eligibility Verification and Form W-4 for tax withholding. Additionally, any changes in the responsible party must be reported within 60 days using Form 8822-B.

📌 Summary of Key Updates

  • 📊 Accrual Method is required for certain businesses starting in 2026.
  • 🏛️ Minnesota offers new CPA licensure pathways.
  • ⏱️ Business formation processing times vary by state.
  • 📝 Employers need to complete Form I-9 and Form W-4 for all employees.
  • 📅 Report changes in responsible party within 60 days with Form 8822-B.

💡 Tips for Navigating Business Law and HR

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

📈 Understand Tax Methods

Know whether your business is required to use the accrual method for accounting. If your average gross receipts exceed $32 million, you must comply with this requirement for federal taxes.

📄 Prepare for CPA Licensure

If you are in Minnesota or another state, familiarize yourself with the CPA licensure requirements. Different pathways may be available, so it’s essential to understand your options.

⏳ Plan for Business Formation

When forming a business, factor in the processing times for documents. This can help you manage timelines effectively, especially if you need to start operations quickly.

📝 Complete Required Forms

Ensure all employees complete Form I-9 and Form W-4. This is crucial for compliance with federal employment laws and for proper tax withholding.

📉 Monitor Business Structure

Regularly review your business structure to ensure it still fits your operational needs. Changes in revenue or business activities may require a different legal structure.

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

The following services are designed to aid in business formation, compliance, and legal documentation. They are ranked based on Trustpilot data as of October 2026. While these ratings provide insight, remember that they can change and may reflect a variety of customer experiences.

🥇 1. Bizee

Bizee has a Trustpilot score of 4.8. It is well-known for its business formation services, registered agent services, and compliance services. However, some users report occasional issues with the user interface, which can affect the overall experience.

🥈 2. ZenBusiness

ZenBusiness holds a Trustpilot score of 4.8. This service is recognized for its business formation and compliance services. While it has a strong reputation, some users mention delays in processing times, which could impact urgent setups.

🥉 3. LegalZoom

LegalZoom has a score of 4.6. It offers a range of services, including business formation, estate planning, and intellectual property registration. Some reviewers note delays in customer support response times, which may be a consideration for those needing immediate assistance.

4️⃣ Rocket Lawyer

Rocket Lawyer averages a 4.5. It is known for online legal services, document preparation, and legal advice. Some users find the subscription model less cost-effective if they require services infrequently, which could influence decision-making for occasional users.

5️⃣ LawDepot

LawDepot holds a Trustpilot score of 4.0. It specializes in legal document creation, including business formation documents. However, some users report issues with document customization options, which could limit usability for certain situations.

🆓 Free Business Resources

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

🔎 Choosing the Right Service

  • 🔍 Compare Trustpilot ratings for user experiences.
  • 📄 Review the types of services offered, such as formation and compliance.
  • ⏳ Look at processing times for document submission and approvals.
  • 💰 Consider pricing structures and if they suit your business needs.
  • 🤝 Check for customer support options available when you need assistance.

❓ 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. Starting in 2026, certain businesses must use this method for federal tax purposes.

📋 How can I apply for CPA licensure in Minnesota?

Effective January 1, 2026, Minnesota offers multiple pathways for CPA licensure. Candidates should check the state board of accountancy for specific requirements and options.

⌛ How long does it take to form a business?

Processing times for business formation documents can vary by state. These can range from a few days to several weeks, depending on the filing method used.

📑 What forms do I need for my employees?

Employers must have all employees complete Form I-9 for Employment Eligibility Verification and Form W-4 for tax withholding.

📅 What are the reporting requirements for changes in business structure?

Businesses must report changes in the responsible party using Form 8822-B within 60 days of the change. This ensures that the IRS has updated information on who is responsible for the business.

🆓 Are there free resources for starting a business?

Yes, the Small Business Administration (SBA) offers free counseling and resources to help entrepreneurs start and grow their businesses. Additionally, the IRS provides important resources for new business owners regarding tax obligations.

⚖️ Recent Cases Related to Business Law

Recent court rulings have clarified various aspects of business law, particularly concerning employment and tax compliance. These rulings highlight important issues that can affect how businesses operate and comply with regulations.

For more detailed information, feel free to check more rulings on the news page.

End of October 2026 Update





Human Resources Defined:



Human resources is a broad term used to describe the individuals who comprise the workforce of a business entity—this definition is also attached to the term “human capital”. More specifically, human resources (commonly simplified to HR) is the name of the function within a business entity charged with the responsibility for implementing policies and strategies relating to the management of individuals (the human resources). 

Human Resources

A business entity’s HR management model attempts to maximize return on investment regarding the organization’s human capital. The HR management strategy, while attempting to streamline the function of individual employees, also attempts to minimize financial risk. 

A human resources manager will seek to achieve these goals by aligning the supply of qualified and skilled individuals and the capabilities of the entity’s current workforce, with the organization’s future business plans and requirements to achieve an efficient return on investment. 

To ensure these objectives are achieved, the human resources department will implement an organization’s human resources requirements, taking into account all laws (federal, state and local labor) and regulations which regulate the entity. 

Basic Functions of an HR Department:

A human resources department may develop policies, systems and standards that implement the department’s basic strategy in a variety of arenas. The following roles are typical for a human resources department in a wide range of industries and business models:

• An HR department will maintain awareness concerning compliance with local, state and federal labor laws.


• An HR department will recruit, interview, select and board resources—including the processing of new employees


• The human resources department is responsible for all employee record-keeping and confidentiality functions


• The human resources department will help with the organizational design and development of the business entity


• The human resources department will oversee performance, conduct and behavior of the entity’s employees


• The HR department will process new employee applications, payroll and employee benefits


• The HR department will institute and oversee training and development of new/current employees—this process is referred to as “learning management”


• The HR department will bolster employee motivation and the morale of the workforce—these functions aim to augment employee loyalty and retention

The implementation of the above policies may directly managed by a company’s HR department, or the functions may be indirectly supervised by managers or third party organizations. 

A human resources department is a fundamental component of employee well-being in any organization, no matter the industry or the size of the entity. Responsibilities of the HR department include all of the above and issues concerning hiring, firing and complying with state and federal tax laws. Furthermore, a company’s HR department is integral part of the organization’s risk assessment department. Aside from complying with local, state and federal labor laws, the human resources department will engage in safety inspection, dispute resolution and the filing of workers’ compensation—all rules and regulations that govern a particular business organization will be affirmed through the delivery of an employee handbook, which of course, is constructed by an HR department.