The U.S.–China Divide in One-Person Companies: Institutions, Markets, and the AI-Driven Rewiring of Entrepreneurship

The article compares one-person companies in the U.S. and China, arguing that legal and tax systems shape how easily lean businesses can be formed and scaled.

In the U.S., single-member LLCs and pass-through taxation make solo ventures relatively easy to launch, while China’s one-person limited liability companies face tighter regulation.

AI and automation are increasing interest in ultra-small firms and solo entrepreneurship in both markets.

The shift has implications for startup policy, regulation, and the future of work.