If you’re running a company and feel like the ground is shifting under your feet, you aren't imagining it. Honestly, keeping up with news on business law lately feels like trying to read a map during an earthquake. Between the Supreme Court’s whiplash rulings and a tidal wave of new reporting requirements, the "old way" of doing business basically died over the weekend.
Take the Corporate Transparency Act (CTA). One day it’s on, the next it’s blocked, then it’s back. Right now, as we move through early 2026, the mess is peaking. If you haven't checked your filing status lately, you're likely sitting on a ticking time bomb of "past due" notices.
The Transparency Trap: New York and the Feds
Most people thought the CTA was a one-and-done federal headache. Wrong. As of January 1, 2026, the New York LLC Transparency Act is officially live. It’s kinda like the federal version's aggressive little brother.
If you have an LLC authorized to do business in New York, you’ve got a choice: file your beneficial ownership disclosure or prove you’re exempt. If you were already in the system before New Year's Day, you have until December 31, 2026, to get your paperwork in order. But if you're starting a new LLC today? You’ve only got 30 days. Miss that window, and you’re looking at $500-a-day fines. That adds up faster than a Manhattan bar tab.
What happened to the federal pause?
The Supreme Court stepped in on January 23, 2025, to lift an injunction that had frozen the federal CTA. But then a different judge in Texas threw another wrench in the gears. Basically, the feds are fighting to keep the registry alive while small business groups argue it’s an unconstitutional overreach.
Here is the kicker: even while the courts bicker, FinCEN is still taking reports. Expert advice? Don't wait for the final-final-final ruling. If the courts eventually side with the government—which many legal scholars like those at Sidley Austin suggest is a real possibility—the backlog will be a nightmare.
The FTC and the Non-Compete Ghost
Remember when the FTC tried to ban almost all non-compete agreements? That rule was basically left for dead in late 2024 and 2025 after a series of court losses. But it’s not actually gone. It’s more like a zombie.
The FTC has scheduled a massive workshop for January 27, 2026, titled "Moving Forward: Protecting Workers from Anticompetitive Noncompete Agreements." They are clearly looking for a new way to skin the cat. While a total federal ban is currently stuck in the mud, states like California and Minnesota are already sprinting ahead with their own bans.
You've gotta be careful here. Even if your state allows non-competes, the National Labor Relations Board (NLRB) is back at full strength as of early 2026. They’ve signaled they’ll be looking at these agreements as potential violations of the National Labor Relations Act. If your non-compete is too broad, you might not just lose a court case; you might get hit with an unfair labor practice charge.
Tax Law’s "One Big Beautiful" Shakeup
We can't talk about news on business law without mentioning the "One, Big, Beautiful Bill" Act (OBBBA) that passed last year. It’s finally hitting the books in a big way for the 2026 tax year.
📖 Related: Tax Cuts on Social Security: What Most People Get Wrong
The Wins
- QBI is Permanent: The 20% Qualified Business Income deduction for pass-throughs is now a forever thing. Huge win for S-corps and sole proprietors.
- Bonus Depreciation: It’s back at 100%. If you bought heavy equipment or a company truck this month, you can likely write the whole thing off immediately.
- Section 179: The limit jumped to $2.5 million.
The "Gotchas"
The reporting thresholds for 1099s have shifted again. The 1099-NEC threshold is now $2,000, and the 1099-K (for apps like Venmo and PayPal) is back at $20,000 with a 200-transaction minimum. It’s less restrictive than the $600 limit we all feared, but it still means your bookkeeping needs to be tighter than ever.
Also, keep an eye on the new "No Tax on Tips" and "No Tax on Overtime" provisions. They sound great on a campaign poster, but for a business owner, they are a compliance migraine. You have to track which part of the "time-and-a-half" is the premium versus the regular rate. Only the premium part qualifies for the new federal deduction.
California’s Climate Mandates are Actually Happening
If your company does business in California and makes over $500 million, January 1, 2026, was your "go-live" date for SB 261. This law requires you to report on climate-related financial risks.
The California Air Resources Board (CARB) is being a bit lenient—sorta. They’ve said they won't penalize companies in 2026 as long as they show a "good faith effort" to comply. But "good faith" is a legal term of art that basically means "don't ignore us." If you haven't started mapping your carbon footprint or assessing how a wildfire might hit your supply chain, you’re already behind.
The HSR Threshold Jump
For the M&A crowd, the FTC just dropped the new Hart-Scott-Rodino (HSR) thresholds. As of mid-February 2026, the "Size-of-Transaction" threshold is $133.9 million.
If you're buying a competitor for $130 million, you might breathe a sigh of relief. But if the deal is $134 million, you’re looking at a $35,000 filing fee and a mandatory waiting period. The penalties for "gun-jumping"—closing a deal before you have clearance—have also been adjusted for inflation. They are eye-watering.
Actionable Steps for the Quarter
Look, nobody expects you to be a constitutional scholar. But you can't play the "I didn't know" card with the IRS or FinCEN.
First, audit your LLCs. If you have any entity registered in New York, verify your filing deadline immediately. Don't assume your registered agent is doing it for you. Most aren't.
Second, refresh your employment contracts. If your non-compete hasn't been updated since 2023, it’s probably unenforceable or, worse, a liability. Switch to "Non-Solicitation" or "Confidentiality" agreements which are much easier to defend in the current 2026 legal climate.
Third, talk to your payroll provider about the OBBBA. Ensure they are set up to handle the specific reporting for "tax-free overtime" premiums. If they mess up the W-2 coding, it’s your headache to fix, not theirs.
Finally, check your HSR math. If you're planning any acquisitions this year, use the new $133.9 million floor. Don't rely on 2025 numbers or you'll find your deal dead on arrival at the FTC.
The legal landscape isn't getting simpler. In fact, 2026 is shaping up to be the year of "extreme compliance." Stay lean, keep your records digital and decentralized, and maybe keep a lawyer on speed dial. You're gonna need it.