USA

Introduction In the United States, there is no formal legal structure called “One Person Company” (OPC) like in India or some other countries. However, the U.S. offers similar structures tailored for solo entrepreneurs. The most comparable structures are: Among these, the Single-Member LLC (SMLLC) is the closest U.S. equivalent to an OPC — providing limited liability, legal identity, tax flexibility, and simplified compliance. 1. What is a One Person Company Equivalent in the USA? A One Person Company in the U.S. context generally refers to a Single-Member LLC, which is: A business entity formed by one individual (or a single entity) that offers limited liability protection, separate legal status, and pass-through taxation (by default). Other similar structures include: 2. Why Choose a Single-Member LLC (SMLLC)? Key Benefits: 3. Key Features of a Single-Member LLC Feature Description Ownership One member (individual or entity) Legal Identity Separate from the owner Taxation Default: disregarded entity (pass-through); Optional: S-Corp/C-Corp Liability Owner not personally liable for debts Formation Document Articles of Organization (with state) Name Requirement Must include “LLC” or “Limited Liability Company” Annual Fees Varies by state (e.g., $800 in CA, $100 in DE) 4. Advantages of One Person Companies (SMLLCs) in the U.S. 4.1 Asset Protection Your personal finances and properties are protected from lawsuits or debts incurred by your business. 4.2 Simpler Taxes The IRS treats single-member LLCs as disregarded entities by default. This means you can report business income and expenses on Schedule C of your personal income tax return (Form 1040). 4.3 Flexible Tax Treatment You can elect S-Corp or C-Corp status by filing IRS Form 2553 or 8832 if it offers tax benefits. 4.4 Full Control There’s no board of directors or shareholders — you are the sole decision-maker. 4.5 Easy to Form and Manage Setting up an LLC is easy, inexpensive, and involves less paperwork compared to corporations. 5. Disadvantages of One Person Companies in the U.S. 5.1 Limited Capital Raising You cannot raise funds from outside shareholders like in a public company. 5.2 Self-Employment Tax SMLLC income is subject to self-employment taxes unless you elect to be taxed as an S-Corp. 5.3 State-Specific Fees and Rules LLC requirements vary by state — some have annual franchise taxes, mandatory reporting, or higher formation costs. 5.4 Banking and Compliance Even if you’re the only person, you must maintain separate business finances, a business EIN, and possibly licensing. 6. Steps to Form a One Person Company (SMLLC) in the USA Step 1: Choose Your State Step 2: Choose a Name Step 3: Appoint a Registered Agent Step 4: File Articles of Organization Step 5: Get an EIN from IRS Step 6: Create an Operating Agreement Step 7: Open a Business Bank Account 7. Taxation of a One Person Company (SMLLC) Default Tax Status: Optional Tax Election: 8. Compliance Requirements Even as a single-owner company, there are important ongoing obligations: 9. Alternatives to a One Person LLC Structure Pros Cons Sole Proprietorship Easiest to form, no fees Unlimited liability S-Corporation (1 shareholder) Tax benefits, corporate status More formalities, payroll C-Corporation (1 shareholder) Ideal for growth/startups Double taxation, complex rules LLC (multi-member) Can add partners later More partners = more rules 10. Best States to Form a One Person Company (LLC) State Benefits Delaware Strong legal protection, no sales tax, investor-friendly Wyoming Low annual fees, privacy protection, no state income tax Nevada No corporate tax, strong asset protection Your Home State Easiest for local business operations, compliance Conclusion In the USA, forming a Single-Member LLC is the most appropriate and legally recognized equivalent to a One Person Company. It offers a perfect balance between simplicity and legal protection, making it ideal for freelancers, consultants, online businesses, and early-stage startups. It gives you the credibility of a real business, the flexibility of taxation, and shielding from personal liability — all with minimal paperwork and cost. If you’re a solo entrepreneur in the USA, this might be the smartest and safest structure to start your business journey.