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Business associations in each country may be established to operate under specific legal forms. They are established by two or more persons and/or legal entities who come together to achieve a common business goal or objectives. As defined in the act of incorporation or its statutes, business organization has a significant contribution to make in the society. Individual business (sole proprietorship) is one of the simplest forms of business activity, in which the business is owned and managed by a single person (one man business). This form of business functions without the need of establishing a complex business organization. In our country, Kosovo, the law does not consider it as a legal personality. This kind of business formation has the highest percentage from the year 2000 until now as compared to other forms of business associations in Kosovo. Although registered in this form, the strength, volume, distribution, and operation of their business is not in harmony with the mission of their registration. So far, there is no study on the causes of domination of the establishments in relation to other business formations. The phenomenon has no adverse effects on the legal plan, but their impact from this aspect is reflected in the fiscal economic system. This phenomenon is not likely to decrease without a synchronization of the laws of companies. Thus, this is accomplished by the systematic regulating of the laws in tax system and by forcing the founders who depend on size and economic power to adopt the legal form of the organization.