Founder, CEO, President: Which Title Should You Use?

What each title means

Founder is a historical fact, owner is an ownership position, CEO is the top officer, and president is an officer role defined in your corporate documents.

• Founder. The person who started the company. It never changes and carries no legal authority.
• Owner. Someone with an ownership stake. Common for sole proprietors and partnerships.
• CEO. The chief executive, responsible for overall direction and results.
• President. An officer title, often with day-to-day authority. In many small corporations the same person is CEO and president.
• Managing member or manager. The usual title in an LLC.

Where there is a board, the board typically appoints the officers, and bylaws define their authority.

Titles by business structure

Sole proprietors are simply owners. LLCs use members or managers. Corporations have officers such as president, secretary and treasurer.

A sole proprietor has no formal officers, though you may still call yourself CEO on a business card. An LLC's operating agreement describes members and any managers. A corporation's bylaws and state law describe officers, and many states expect certain roles to be filled.

Check your state's rules and your own documents. If you are still choosing a structure, see choosing a business structure and how to choose the right business entity.

Where your title appears on paper

Contracts, bank accounts, tax filings and funding applications often ask for your title. It should match your formation documents.

When you sign a lease, a supplier agreement or a funding agreement, you sign in a capacity: for example, John Smith, Managing Member. A mismatch between your signature and your authority can cause delays or create personal liability questions.

Banks and funders may ask for an ownership percentage, not just a title. They want to know who has the authority to bind the company and who owns at least a set percentage. Keep your articles of organization or incorporation handy.

Titles and personal guarantees

A title does not remove personal responsibility. Many business financing agreements ask owners to sign a personal guarantee regardless of their title.

Being CEO of an LLC protects you from many business liabilities, but a personal guarantee you sign is a promise from you personally. Read the guarantee carefully, and note what it covers. Our explainer on personal guarantees goes through the common terms.

If you have partners, make sure the agreement between you states who can sign and who must approve large commitments.

Choosing a title that works for your business

Pick a title that is accurate, understandable to customers and consistent across documents. Do not use a title you are not entitled to.

Practical tips:

1. For a solo business, owner or founder is clear and honest.
2. If you hire a manager, consider separating the owner and CEO roles on paper.
3. With co-founders, define titles and decision rights in writing before disputes arise.
4. Use consistent titles on your website, email signature, bank forms and applications.

For personal structure questions, talk to an attorney. Titles do not change taxes by themselves, but your entity type does.

When the title meets the funding application

Funding applications ask who owns the business and who signs. Accurate ownership details speed up review.

For ROI Funder, the application takes a few minutes online, uses a soft credit pull and has no obligation to accept an offer. You will give your business details, your ownership information and three months of business bank statements for a complete file. Same-day funding is available on approved, complete files.

ROI Funder considers 500+ FICO, 6+ months in business and $20,000+ monthly revenue. See how it works and working capital to learn the process.