New Business Laws in 2025: What Entrepreneurs Need

Starting an agency is an incredible journey, but the legal landscape for new businesses is shifting fast. In 2025, several critical, non-technical regulations are taking effect that can directly impact your overhead, paperwork, and liability.

Here are three essential legal areas every entrepreneur needs to prioritize right now:

Know Your Owners (Corporate Transparency)

This is the biggest administrative change for new companies.

• The Rule: The federal Corporate Transparency Act (CTA) requires most new LLCs and corporations to report detailed information about the individuals who own or control the business (your "Beneficial Owners") to the Financial Crimes Enforcement Network (FinCEN).

• Your Action: If you formed a new legal entity for your agency, you must file this report. This rule is serious, and failure to comply can lead to steep penalties. Consult your legal advisor immediately to confirm your reporting deadlines and ensure accurate filing.

Prepare for Higher Labor Costs

Labor regulations are tightening, and costs are on the rise. In many states, new minimum wage increases and higher salary thresholds for exempt employees are taking effect in 2025. For agencies planning to scale or bring on team members, these changes can significantly impact your financial forecasts and payroll planning.

It’s also critical to ensure that your contractors and freelancers are correctly classified. Government scrutiny around worker misclassification has intensified, and mistakes here can lead to back-pay claims, tax penalties, and unnecessary legal battles. Take time now to review your contracts and confirm your classifications with a legal or HR professional before issues arise.

Get Serious About Data Privacy Paperwork

Even if your agency isn’t in the tech space, you handle client data  and that means you’re subject to privacy laws. An increasing number of U.S. states are introducing comprehensive data privacy regulations that give clients and consumers more control over their personal information.

• The Trend: More states are adopting comprehensive data privacy laws, giving clients and consumers new rights over their personal information. This applies to basic client forms, email lists, and contact data.

• Your Action: Ensure your agency's Privacy Policy is clear, current, and accessible on your website. This document needs to explain exactly what data you collect and how a client can request it be deleted. Transparency here builds trust and helps you comply with the growing patchwork of state regulations.

Our Advice

Compliance must be treated as a core business function, not an afterthought. Your energy should be focused on building your agency, not fighting a government fine. Connect with a legal and financial advisor today to make sure your foundation is rock solid for the next two years.

Choosing the right attorney doesn’t have to be overwhelming. With the right research and preparation, you can find a legal partner who will advocate for your interests and guide you through the legal process with confidence.