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Limited Liability Company: One Person can now open it - Henlus - 09-17-2025
A lot of people don’t realize how flexible an LLC (Limited Liability Company) can be. Let me break it down in plain English, as your street accountant.
Can one person run an LLC?
Yes. In Nigeria today, you can register a one-person company. This became possible under the new Companies and Allied Matters Act (CAMA) 2020.
Before now, you needed at least two people to form a company. But with the new law, single-member companies are allowed.
That means:
1. You can be the only shareholder (owner).
2. You can also be the only director (manager).
3. All profits belong to you. You can either keep them in the company or declare dividends to yourself. 100% legal.
Can one person run it without workers?
Yes, you can. There’s no law that forces you to hire staff before your company is valid.
You can be the CEO, accountant, marketer, and cleaner—all in one. Many startups and freelancers begin this way.
But here’s the truth:
1. Running solo works fine when starting small.
2. As money starts coming in, you’ll burn out if you don’t get help.
Even if you don’t hire full-time staff, you can outsource: Virtual assistant, Accountant, Lawyer, Cleaner, Delivery rider
Why workers (or outsourcing) eventually matter
1. Tax & Audit: To enjoy tax benefits (like paying yourself a salary, declaring dividends, or getting loans), you’ll need proper records. An accountant—even part-time—helps.
2. Growth: If you don’t delegate, you’ll remain self-employed. To scale, you need others.
3. Credibility: Banks, investors, and big clients take you more seriously when you have a structure—not just “one-man squad.”
But if you want to grow wealth and reduce tax like the rich, start building structure—even if it’s just one trusted staff or outsourced experts.
Remember: The rich don’t win by muscles; they win by structure.