United States SP

United States SP

Sole Proprietorship

Time of Update: 2026-03-31

SP is the simplest form of legal entity, owned and operated by individuals without the need for other shareholders and directors to be involved. In the United States, SPs are typically used to run small businesses, such as individual shops and consulting companies. Since an SP does not have legal person status, the financial responsibilities of individuals and businesses are the same, which is also a drawback of an SP. Additionally, SPs do not need to file annual reports or pay annual taxes, but individual income taxes and corporate income taxes are calculated separately. In some states, non-residents can also serve as shareholders and directors of an SP, but they must meet local legal requirements.

United States SP Basic Information

Ownership:

Private Ownership

Limited Liability:

Negative

Publicly Participates In Capital Market:

Negative

United States SP Shareholder / Director / Secretary Requirements

Requirements For Shareholders:

At least one

Requirements For Directors ::

At least one

Legal Representative Not Mandatory:

Positive

Local Directors Not Mandatory:

See Memo

Local Secretaries Not Mandatory:

See Memo

United States SP Registered Capital Requirement

Minimum Registered Capital Requirement:

Depends on the specific state

Capital Injection Not Required:

Positive

Capital Injection Requirement:

N/A

United States SP Memo

Memo:

In the United States, the laws vary from state to state, so the corresponding minimum registered capital, whether local residents are required to serve as directors, and the requirement for nominating a secretary also vary.

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