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

You’ve always wanted to be your own boss, but now that the money’s gone, what should you call yourself? Choosing the right title for your business leader is not just a matter of personal preference; it can affect how you and your company are perceived by employees, lenders, and your target market.

Titles such as “CEO,” “Owner,” and “founder” each have different meanings and are often associated with specific business structures and roles within a company. Understanding these differences is important before choosing your topic and presenting it to the world. At the very least, it should clearly reflect your responsibilities and be consistent with your company structure.

Choose Your Topic

The following is an overview of several topic options you can choose from, presented in alphabetical order.

CEO (Chief Executive Officer)

The title “CEO” is usually associated with large companies and organizations and does not reflect ownership of the company. The Chief Executive Officer (CEO) is usually responsible for the company’s overall strategic direction, financial health, day-to-day operations, and management. They are typically the company’s primary spokespersons for stakeholders, investors, employees and the public. In large companies, CEOs typically report to the 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 a business has a board of directors and multiple layers of management. This article can improve your company’s perceived legitimacy and professionalism, especially in dealing with investors and external partners.

Important note: You don’t have to have a business structure to call yourself a CEO. Many business owners choose to use the title of CEO because it conveys authority and success.

Director

In large companies, directors are not owners but employees who report to the CEO. Being a director implies a certain level of authority, but it is also elusive. Director titles are often combined with other words that indicate specific director responsibilities.

Your choice of words depends on the type of business you have. For example, if you’re in the creative field, to show that you’re a manager, you might want to use the title “Founder and Creative Director.” The owner of a technology business may choose to be called the “Owner and Director of IT (or Technology).

Director of Operations/Chief Operating Officer

Also, this title is often used in large companies and refers to the person who oversees the day-to-day operations of the business. In large companies, some directors report to this person, who reports to the CEO or President.

However, small business owners may prefer to call themselves “COOs” or “Chief Operating Officers” to indicate that they are involved in the company’s operations. “COOs” do not necessarily mean reporting roles and can be the highest title in a company. However, people outside your company may mistakenly think that you are second in command.

The founder

The title “Founder” emphasizes your role in establishing the company. It highlights your entrepreneurial spirit, strength of vision, and tenacity as you build a business from the ground up.

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

GGeneral manager

“General managers” can manage a part of a company or an entire business. Generally, they manage the company’s operations, keeping it running smoothly. In particular, being called “general manager” means that you report to the 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 “Managing director” or “MD” and its responsibilities are often interchanged with those of CEO. Choosing the title “MD” or “CEO” is up to you. Some small business owners consider the title “CEO” to be for the person leading a large company and prefer to be called “Managing Director.”

Managing Partner/Managing Member

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

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

The owner

The title “Owner” is specific and clearly indicates the ownership of the business. This title is often used in small businesses, real estate, and partnerships. Being an owner gives you complete control and the final say in all aspects of the company, including marketing, business strategy, and setting goals. Owners usually supervise day-to-day operations and are often responsible for establishing relationships with vendors, partners, clients, etc.

However, while the title “Owner” clearly communicates that he has a direct hand in the business, it is not clear and does not convey the same authority or organizational level as “CEO.” Consider upgrading (or adding) your title as your business grows.

The president

The “presidents” of small businesses may also be the CEO of the company. While in large companies, being the President does not necessarily mean ownership in the business, in small companies, being “President” means ownership.

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

Principal

Being the “Principal” of a company usually indicates that you are the founder, owner, or CEO. “Principals are directly involved in the management of the business and its daily operations and are the decision makers of the company. In small businesses, the titles of “CEO,” “President,” and “Headquarters” are often interchangeable and come down to personal preference.

The owner

Calling yourself a “Proprietor” is essentially the same as “owning” a business. Although sole proprietorship is the legal term to describe a company structure (see below), the term “Proprietor” is archaic and not commonly used today.

Legal Structure and Topic Selection

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

Sole Proprietorship

A simple way to start a business, sole proprietorships do not require registration with the government and therefore are not considered legal business structures. Income and losses are recorded and filed Schedule C (IRS Form 1040), “Business Profit or Loss,” and the assets and liabilities of a business are not legally separate. Because the owner is personally responsible for business debts and other liabilities, sole proprietors may find it more difficult to obtain business loans and investment financing.

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

Partnership

When you start a business with other people, by default, you are considered a partner in most states. Both of you (or both) share equal ownership of the assets and liabilities of the business unless you have a partnership agreement that says otherwise. As a sole proprietorship, there is no need for any special filing or registration, but you will 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 are carried over to the partners’ personal tax returns.

• Common Titles: Partner, Managing Partner
• Partnerships are collaborative. The term “Partner” is a straightforward choice, but those with specific roles are often referred to as “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, the assets of the owners (called members) 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 carried over to members’ tax returns. Alternatively, they can choose to be taxed as corporations or S Corporations, which offer unique tax advantages.

• Common Titles: Member, Managing Member, CEO, President
• With an LLC, you have the advantage of flexibility in terms. “Member” is the official title, but titles such as “CEO” or “President” are often used for clarity and professionalism.

Organization

Business owners choose to form a C Corp for several important reasons. Corporations are legal entities completely separate from their owners/shareholders and, therefore, receive the highest liability protection from legal and financial business claims. IC Corps can easily raise money by borrowing money or selling equity. There are no restrictions on the number of shareholders, which makes it easier to attract investors.

On the other hand, C Corps may face double taxation (taxable corporate profits and then taxable dividends); however, by choosing S Corp status, they can avoid double taxation.

• Common Titles: CEO, President, Founder, Chairman
• Corporations have a formal structure with clearly defined roles. Titles such as “CEO” and “President” are general and have specific legal and operational functions.

Choosing the Right Topic

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

Think about the future of your company and consider how outsiders, such as customers, investors, and partners, will see the topic. The article can improve the credibility and trust of the experts. Finally, research common topics used in your industry and how they may affect your business reputation.

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

CorpNet provides business formation, filing, state tax registration, and corporate compliance services in all 50 states. Express and 24-hour services are available upon request. Click here to learn more.

Photo: Envato

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