📅 2026 Update: Key Changes Impacting Small Businesses

Since the original article on Hungry Jack's was published, several significant changes have occurred in business law and small business finance. These updates affect reporting requirements, lending practices, and tax laws that impact small businesses. The earlier article continues further down the page with more foundational information.

📊 Corporate Transparency Act Changes

In March 2025, the Financial Crimes Enforcement Network (FinCEN) introduced an important update. U.S.-formed companies became exempt from beneficial ownership reporting under the Corporate Transparency Act (CTA). This change was made permanent in August 2026, easing the reporting burden on many small businesses.

🚫 FTC Noncompete Rule Removal

In February 2026, the Federal Trade Commission (FTC) removed the 2024 rule that banned most worker noncompete agreements. This aligns with several court rulings that blocked the noncompete rule nationwide. Small businesses can now navigate employee agreements without this restriction.

💰 Tax Law Updates

The 2025 tax law brought significant changes to the startup stock exclusion. 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 also rose from $10 million or 10 times basis to $15 million per taxpayer.

💼 Small Business Lending Changes

As of 2024, the average interest rate on small and medium-sized enterprise loans rose from 6.06% in 2023 to 6.77% in 2024. This increase in borrowing costs can impact small business financing decisions and overall operations.

📌 Summary of Key Points

  • 📈 Corporate Transparency Act: Reporting exemptions implemented.
  • 🚫 FTC Noncompete Rule: Noncompete agreements no longer banned.
  • 💰 Tax Law: Increased exclusions for qualified small business stock.
  • 💼 Lending Rates: Average interest rates on small business loans rose.

💡 Practical Tips for Small Business Owners

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

🔍 Understand New Reporting Requirements

Familiarize yourself with the Corporate Transparency Act changes. Knowing the new reporting exemptions can save your business from unnecessary compliance efforts.

📣 Keep Up with FTC Changes

Stay informed about the removal of the noncompete rule by the FTC. This shift may affect how you draft employment contracts and manage employee relationships.

📊 Utilize Tax Benefits

Take advantage of the expanded startup stock exclusion. The new tax law offers significant benefits for small businesses, especially those looking to raise capital.

💳 Plan for Increased Borrowing Costs

Be aware of rising interest rates on small business loans. Budget for higher costs when seeking financing to ensure your business can sustain operations.

🛠️ Use Available Resources

Leverage free resources like the Small Entity Compliance Guide from the U.S. Department of Labor. This guide helps you understand your obligations under labor laws.

🏆 Ranked by User Reviews (2026)

This section highlights services that can assist small businesses, focusing on their trustworthiness based on user reviews. The ratings are from Trustpilot data collected in October 2026, and they can change over time. Ratings provide insights, but remember that unhappy customers often make their voices heard more than satisfied ones.

🥇 1. Simply Business US

Simply Business US holds a Trustpilot score of 4.5. This service is known for its knowledgeable and supportive staff, as well as affordable pricing options. Reviewers appreciate the clear and detailed information provided.

However, some users have reported difficulties reaching customer support over the phone, which may impact your experience.

🥈 2. ZenBusiness

ZenBusiness averages a perfect Trustpilot score of 5.0. It is recognized for helpful, patient staff and fast response times, making the process of starting a business smoother. Many users enjoy the user experience but have noted issues with slow support response times and difficulties in canceling ongoing subscriptions.

🥉 3. ShipBob

ShipBob has a Trustpilot rating of 4.0. This service has been known for its efficient order fulfillment and a user-friendly platform, which can be critical for small businesses focused on logistics. However, customers have reported issues with customer support and occasional shipping delays.

4️⃣ Square

Square holds a Trustpilot score of 3.6. It is well-known for its easy-to-use payment processing and integrated point-of-sale system. While many users find it convenient, some have raised concerns about transaction fees and challenges with customer support.

🆓 Free Government and Nonprofit Help

The U.S. Department of Labor offers a Small Entity Compliance Guide that can assist small businesses in understanding their labor law obligations. This resource is valuable for navigating complex regulations without incurring additional costs.

🔎 What to Compare When Choosing a Service

  • 🏷️ Cost and Fees: Look for transparent pricing structures.
  • ⚖️ Customer Support: Evaluate how easy it is to get help when needed.
  • 🔄 User Experience: Check if the platform is user-friendly.
  • 📝 Reputation: Review customer feedback and ratings for insights.
  • 💼 Services Offered: Ensure the service meets your specific business needs.

❓ Frequently Asked Questions

❓ What are beneficial ownership reporting requirements?

Beneficial ownership reporting requirements under the Corporate Transparency Act have changed. As of August 2026, many U.S.-formed companies are now exempt from these reporting obligations.

📈 How have tax laws changed for small businesses?

The 2025 tax law expanded the startup stock exclusion. Now, small businesses can benefit from a 50% exclusion after three years and 100% after five years for qualified small business stock.

💳 What is the current average interest rate for small business loans?

As of 2024, the average interest rate on small and medium-sized enterprise loans is 6.77%, up from 6.06% in 2023. This increase may affect your financing options.

📊 What resources are available for small business compliance?

The U.S. Department of Labor provides a Small Entity Compliance Guide to assist small businesses in understanding their labor law obligations. This is a valuable resource for navigating complex regulations.

🚫 How does the removal of the noncompete rule affect my business?

The FTC's removal of the noncompete rule allows for more flexibility in employee agreements. This change can impact how businesses manage and retain talent.

🏦 What should I consider when applying for a small business loan?

When applying for a small business loan, consider the increased interest rates, your business's financial health, and how much you can afford to repay.

⚖️ Recent Cases Impacting Small Businesses

Recent court rulings have influenced the landscape of business law, particularly regarding employment agreements and compliance requirements. These developments are important for any small business owner to understand.

For a deeper understanding of recent legal rulings, check out more rulings on the news page.

End of October 2026 Update






 



Hungry Jack's



Hungry Jack's is an Australian fast food franchise that was originally under the control of the American fast food franchise Burger King. From 1995 to 2001, the two companies were involved in a prolonged legal dispute that was ultimately decided in favor Hungry Jack's.

Hungry Jack's


 



Hungry Jack's began business in 1971 as the exclusive franchise of Burger King in Australia. In 1991, the contract between the two businesses was renewed. The contract included a "termination clause" stating that Hungry Jack's was responsible for opening four new franchise locations a year. However, the contract contradicted itself with another clause which stated that as long as Hungry Jack's opened at least two new locations in a year, another year's worth of a "grace period" would be granted.



 



In 1995, Burger King decided it wanted to take over directly from Hungry Jack's. Though the terms of the contract stated that every franchise location opened had to be approved by Burger King, the company refused to approve the opening of any new locations, making it impossible for Hungry Jack's to live up to the terms of the contract. At this time, Burger King also made use of a Hungry Jack's employee who provided them with information about the company's activities.



 



In 1996, Burger King claimed that Hungry Jack's had violated the terms of its contract and began directly opening its own franchise locations. In 2001, Hungry Jack's filed suit against Burger King, claiming that they had violated the terms of the contract. The case was heard in the New South Wales Court of Appeal and resolved on June 21, 2001. In its decision, the court considered the termination clause's terms and its contradictions with other parts of the contract. The court ruled that the contract allowed Burger King to arbitrarily impeded and hinder Hungry Jack's, making it impossible for them to honor the contract.



 



In reviewing the contract, the court considered the question of "good faith." Because the contract in question was not a standard commercial agreement for which precedent concerning good faith had not yet been established, the court had to rule on whether there was an implicit, justifiable reason to assume such a basis for business. Taking into account Burger King's attempts to prevent Hungry Jack's from opening more locations and use of internal information provided by its informant, the court ruled that Burger King's actions were taken with the direct intent of harming Hungry Jack's to allow Burger King to open its own locations.



 



As a result, the court ruled in favor of Hungry Jack's and ordered that Burger King pay roughly 71 million in Australian dollars. Burger King appealed the decision but was not successful in this attempt. The case is considered in the Australian legal system for introducing "good faith" as a measure of determining the merits of two parties' actions when involved in a contractual dispute. The case is often cited as a precedent in such cases.