Owner or Founder: Which title should you use?

Let’s define the terminology first. Simply said, an owner is someone who directly or indirectly owns a company. On the other hand, a founder is someone who creates a company from beginning, frequently with a distinctive idea or vision. Not all owners are founders, even yet all founders are owners.

Which name should you give yourself then? In the end, it depends on how involved and what part you play in the company. ‘Founder’ is a better title if you are the one who came up with the original idea and launched the company. This title provides a certain amount of dignity and appreciation for the perseverance and ingenuity needed to launch a prosperous firm.

‘Owner’ is a more realistic term, though, if you bought an already-existing company or joined as a shareholder through an investment. This title expresses your ownership interest in the company but does not necessarily imply that you were involved in its creation.

Regarding the relevant inquiries, a Limited Liability Company (LLC) may have many owners, also referred to as members. In reality, LLCs are frequently created by a group of people who individually invest money in the company and split ownership and earnings.

The answer is no, a management of an LLC is not an employee. Managers of LLCs are accountable for overseeing daily operations and are regarded as members of the business. Although they might be paid a salary or other forms of compensation, they are not considered to be workers in the conventional sense.

Whether the company’s shares are openly traded on a stock exchange determines whether your LLC is public or private. If not, your LLC is a private business. While public corporations are subject to severe reporting requirements, private companies are not obligated to disclose financial information to the public.

Should you refer to yourself as CEO or president, finally? The size and organization of your company will determine this. The title “CEO” is more fitting for the person in charge of overall strategy and decision-making in larger organizations with a board of directors and numerous departments. ‘President’ might be a better title in smaller companies because it communicates leadership without having the same amount of formality as a corporate title.

Choosing the appropriate title for oneself within a company is crucial for defining your function and level of commitment. Although the terms “owner” and “founder” could be used interchangeably, they have different meanings and should be used in the right context. Making wise business decisions can also be aided by knowing the specifics of LLC ownership and administration as well as the distinction between public and private companies.