Individual Business – An Under-Exposed Type of Business Model
An individual business is a company that is run by a single person. It is different from a business structure with several owners, such as a LLC or partnership, which is a similar type of business, but structured and taxed in a different manner.
Individual businesses aren’t required to register with federal authorities, but they may require the use of a DBA or other licenses and permits. They’re not subject to the same tax laws as corporations and have unlimited liability, meaning that a lawsuit brought against a private business could end up costing the company everything.
This article explores an under-explored type of business model – the individual business model. Based on a detailed longitudinal inductive case study on chef and gastronomic innovator Ferran Adria, this article identifies triggers, mechanisms and changes in his ever-changing personal business model.