Defining a Small Business Owner: Characteristics and Responsibilities

Owners of small enterprises, often with fewer than 500 employees, are those who run and manage their own companies. They are in charge of running their business on a daily basis, which includes hiring and training staff, handling money, marketing, and sales. Small business owners sometimes handle multiple responsibilities, therefore they need to be flexible in order to maintain and expand their company.

The Limited Liability Company (LLC), which offers personal liability protection to its owners and permits pass-through taxation, is one popular type of small business structure. Depending on whether they are registered with the Securities and Exchange Commission (SEC) and have publicly traded shares, LLCs can be either public or private. Since the majority of small firms are private LLCs, ownership information need not be made public.

However, using anonymous or fictitious directors and stockholders makes it easy to conceal a company’s ownership. Although this method is permitted in some nations, it is frequently thought to be unethical and makes it harder for stakeholders to hold the firm responsible.

You can conduct a search of the state’s business registration to see whether a firm is an LLC in the United States. The procedures and costs for registering a business, including a Doing Business As (DBA) name, vary by state. For instance, it costs $20 to register a DBA in Colorado.

Finally, the fact that they are in charge of running their own company defines small business entrepreneurs. They must be well-rounded in their skill sets and able to change course as necessary. Small businesses frequently use LLCs as their organizational structure, and whether they are registered with the SEC determines whether they are considered public or private. Although it is technically possible to conceal ownership information, doing so is generally not a good idea because it makes it more difficult for stakeholders to hold businesses accountable.