Are You the CEO, Owner, or Founder? Choosing the Right Title for Your Business

You’ve always wanted to be your own boss, but now that the buck stops with you, what should you call yourself? Choosing the right title as the leader of your business is not just a matter of personal taste; it can impact how you and your company are perceived by employees, lenders, and your target market.

Titles such as “CEO,” “Owner,” and “Founder” each carry distinct connotations and are often associated with specific business structures and roles within the company. Understanding these distinctions is critical before selecting your title and presenting it to the world. At the very least, it must accurately reflect your responsibilities and align with your company’s structure.

Choose Your Title

Following is an overview of several title options you can select from, presented in alphabetical order.

CEO (Chief Executive Officer)

The title “CEO” is typically associated with corporations and larger organizations and doesn’t necessarily reflect company ownership. A Chief Executive Officer (CEO) is usually responsible for the company’s overall strategic direction, financial health, daily operations, and management. They typically are the company’s primary spokesperson to stakeholders, investors, employees, and the public. In larger corporations, CEOs usually report to a Board of Directors:

Using the title “CEO” implies a certain level of organizational complexity and that your company has a formal corporate structure. It suggests that the business has a board of directors and multiple layers of management. This title can enhance your company’s perceived legitimacy and professionalism, especially in dealings with investors and external partners.

Important note: You do not have to have a corporate structure to call yourself the CEO. Many business owners prefer to use the CEO title since it conveys authority and success.

Director

In larger corporations, directors aren’t owners but employees who report to the CEO. Being a director connotes some level of authority, but it is also vague. Director titles are often combined with other words that reflect the director’s specific responsibilities.

Your choice of words is dependent on the type of business you own. For instance, if you’re in a creative field, to show that you’re the boss, you might want to use the title “Founder and Creative Director.” The owner of a tech business might choose to be called “Owner and IT (or Technology) Director.

Director of Operations/Chief Operating Officer

Again, this title is often used in bigger companies and refers to the person who oversees a business’s daily operations. In larger companies, other directors report to this person, who reports to the CEO or President.

However, small business owners may prefer to call themselves “COOs” or “Directors of Operations” to show they are hands-on in the company’s operations. “COOs” are not necessarily reporting roles and can be the top title in a company. However, people outside your company may mistakenly think you are second in command.

Founder

The title “Founder” underscores your role in establishing the company. It highlights your entrepreneurial spirit, visionary prowess, and resilience as you built a business from the ground up.

Using “Founder” as a title can be particularly powerful in the startup community, where the emphasis is on innovation and entrepreneurial drive. Although “founder” (or “co-founder”) reflects your connection with and commitment to the company, it doesn’t indicate your current status with the company. For this reason, it’s a good idea to combine this title with another one, such as “Founder and CEO” or “Founder and Creative Director.”

General Manager

“General managers” can be in charge of part of a company or the entire business. Typically, they handle the company’s operations, keeping it running smoothly. On its own, being called a “general manager” implies that you report to a CEO, so in a small business, this title is best used when combined with other titles, such as “Founder and General Manager” or “Owner and General Manager.”

Managing Director

The title of “Managing director” or “MD” and its responsibilities are often interchangeable with those of a CEO. Choosing the “MD” or “CEO” title is up to you. Some small business owners consider the “CEO” title to belong to people who lead a larger company and choose to be called a “Managing Director.”

Managing Partner/Managing Member

Using titles that include “partner” or “member” indicates you own at least some part of the business. Calling yourself a “managing partner” generally means you own and manage the business. Along with other people (typically also “managing partners”), an MD directs and implements the company’s vision, tactics, and strategies.

“Managing members” are usually owners of a limited liability company (LLC).

Owner

The title “Owner” is straightforward and obviously indicates ownership of the business. This title is commonly used in small businesses, sole proprietorships, and partnerships. Being an owner gives you complete control and the final say over all aspects of the company, including marketing, business strategies, and goal setting. Owners typically oversee daily operations and are often responsible for establishing relationships with vendors, partners, clients, etc.

However, while the title “Owner” clearly communicates that you have a direct stake in the business, it is vague and doesn’t convey the same authority or organizational hierarchy as “CEO.” Consider upgrading (or adding to) your title as your business grows.

President

“Presidents” of small businesses may also be the company’s CEO. While in larger firms, being the President doesn’t necessarily indicate ownership in the business, in smaller companies, being “President” connotes ownership.

The “President” of a company is a prestigious role, and the title carries a lot of weight with outsiders, such as vendors, lenders, and partners.

Principal

Being a “Principal” of a company generally indicates you’re a founder, owner, or CEO. “Principals are directly involved in managing the business and its daily operations and are the decision-makers for the company. In small businesses, the “CEO,” “President,” and “Principal” titles are most often interchangeable and come down to personal preference.

Proprietor

Calling yourself “Proprietor” is essentially the same as saying you’re the “Owner” of the business. While sole proprietor is a legal term describing the structure of a company (see below), the term “Proprietor” is a bit old-fashioned and not used much today.

Legal Structure and Title Selection

The legal structure of your business can influence the titles you choose.

Sole Proprietorship

The easiest way to start a business, sole proprietorships do not need to register with the state and are therefore not considered formal business structures. Income and losses are recorded and filed on Schedule C (IRS Form 1040), “Profit or Loss From Business,” and the property and liability of the business are not legally separate. Because the owner is personally liable for the business’s debts and other liabilities, sole proprietors may find it more difficult to acquire business loans and investment funding.

Typical titles: Owner, Proprietor
As a sole proprietor, you can choose any title, but “Owner” or “Proprietor” are most commonly used.

Partnership

If you start a business with other people, by default, you’re considered a partnership in most states. You both (or all) share equal ownership of the business’s assets and liabilities unless you’ve got a partnership agreement that says otherwise. Like a sole proprietorship, there’s no need for any special filing or registration, but you’ll still need to handle all the usual permits, licenses, filings, and tax requirements. For tax purposes, partnerships are “pass-through” entities, and business profits and losses flow through to the partners’ personal tax returns.

Typical Titles: Partner, Managing Partner
Partnerships are collaborative. The term “Partner” is a straightforward choice, but those in specific roles are often called “Managing Partners.”

Limited Liability Company (LLC)

LLCs are a popular choice for business owners looking for personal liability protection. Because the company and the owners are separate legal entities, owners’ (called members) personal assets are generally protected from business debts and legal claims. Forming an LLC involves registering the company with the Secretary of State; however, the good news is that filing involves minimal paperwork and filing requirements. LLCs can be taxed as disregarded entities, with income and losses passing through to members’ tax returns. Alternatively, they can opt to be taxed as corporations or S Corporations, which offers different tax advantages.

Typical Titles: Member, Managing Member, CEO, President
With an LLC, you have the benefit of flexibility in titles. “Member” is the formal legal term, but titles like “CEO” or “President” are typically used for clarity and professionalism.

Corporation

Business owners choose to form a C Corp for several important reasons. Corporations are entirely separate legal entities from their owners/shareholders and, therefore, receive the highest liability protections from the business’s legal and financial claims. C Corps can raise capital more easily by borrowing money or selling equity. There are no limits on the number of shareholders, making it easier to attract investors.

On the downside, C Corps may face double taxation (corporate profits taxed and then dividends taxed); however, by electing S Corp status, they can avoid double taxation.

Typical Titles: CEO, President, Founder, Chairman
Corporations have a formal structure with clearly defined roles. Titles like “CEO” and “President” are standard and carry specific legal and operational duties.

Choosing the Right Title

When deciding on a title, make sure it aligns with your company’s legal framework and organizational hierarchy. Choose a title that accurately reflects your duties and responsibilities within the company.

Think about your company’s future and consider how outside parties, such as customers, investors, and partners, will perceive the title. A title can enhance professional credibility and trust. Finally, research the standard titles used in your industry and how they may impact your business’s reputation.

Ultimately, the correct title can help you establish authority, build trust, and effectively communicate your role within the company. Choose something that aligns with your vision and the message you want to convey to your employees, investors, and customers.

CorpNet offers business formations, filings, state tax registrations, and corporate compliance services in all 50 states. Express and 24 hour rush filing services available upon request. Click here to learn more.

Image: Envato

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