Individual Business – An Under-Exposed Type of Business Model

A single-owner business is one that is owned by a single person. It differs from a structure for business that has multiple owners, for example a partnership or LLC, which is a similar type of business, but it is structured and taxed in a different manner.

Individual businesses typically don’t have to be registered with the federal government. However, they may need an DBA (doing business under the name of) as well as any required permits or this licenses. They’re not subject to the same tax rules as corporations and have unlimited potential for liability, which means that a lawsuit against an individual business could cost them everything.

This article examines a specific type of business model that is under-explored – the individual business. Based on a detailed longitudinal inductive case study of chef and gastronomic innovator Ferran Adria, the article identifies triggers, mechanisms, and modifications in his own evolving business model.