Founder? Owner? President? CEO? Managing partner? You have multiple possibilities when considering which professional title to adopt as you launch your accounting firm. So, what should you think about as you decide what to call yourself as a key leader of your company?
In this article, I'll explain what to consider when selecting a title — and describe some of the most popular titles accounting firm owners use and who they're most appropriate for.
A professional title infers a level of authority, responsibilities and legal accountability, so it's important to choose wisely. Various factors will influence which title is appropriate for your situation.
- Your role: Do you participate in providing services to clients or performing other tasks involved in your firm's day-to-day operations? Or do you contribute financially and have a say in strategic decisions but do not actively work in the business?
- Your firm's business structure: What entity type have you registered your accounting firm as? Whether you're operating as a sole proprietorship, partnership, limited partnership, single-member LLC, multi-member LLC, corporation, professional corporation or other entity type will affect what you call yourself.
- Your firm's size: Whether you operate a one-person business, have a large staff supporting you, or fall somewhere in between will influence what professional title makes the most sense for you.
- Your company culture: Some titles are more formal than others. While some business owners in creative fields like marketing opt to use non-traditional titles (e.g., Boss of All Things or Chief Cheerleader), a more traditional title may garner more trust in the field of accounting.
- Your state's laws: Many states have rules specifying what accountants may call their companies and owners. Such laws help prevent firms from misleading the public.
- Accounting industry standards: Different industry organizations, such as the American Institute of CPAs, may have guidelines for their members.
Popular titles for accounting firm owners
- Managing partner: This title is often assigned to the partner in a firm who serves as the leader in charge. Using the term "partner" implies the firm is organized as some form of partnership (e.g., general partnership, limited partnership, limited liability limited partnership). Sometimes firms have more than one managing partner.
- Senior partner: The title of senior partner implies a high level of authority within a firm formed as a partnership. Senior partners typically have less control over management of the firm than managing partners.
- Partner: Using partner as a title denotes ownership of a firm that operates as a partnership, though it does not indicate the level of management control and decision-making authority the individual has.
- Managing member: In a firm operating as a
limited liability company or professional limited liability company, the title of managing member typically goes to the owner (member) with the most control and decision-making authority. Some LLCs have multiple managing members. - Founder: This title indicates the individual has been instrumental in establishing the firm and is strongly invested in shaping its vision. Often, the title is used in conjunction with another title that more fully describes the owner's role in the business (e.g., founder and CEO).
- Owner: While this title denotes ownership in the firm, it does not give a sense of what the individual is responsible for. It's often used with another more descriptive title (e.g., owner and president).
- Chief executive officer: This implies the individual is a top-ranking leader with significant responsibility for the firm's success. It's typically assigned to a high-level executive who reports to the board of directors of a corporation. "CEO" doesn't inherently indicate the individual is an owner of the firm. Some organizations hire a CEO who does not have an ownership interest.
- President: Similar to CEO, the title of president implies the individual has a high level of authority in a firm. "President" doesn't inherently indicate that an individual is an owner of the firm — it might be used by an owner or assigned to a high-level executive employee. Pairing the term with another, such as "president and founder," can help bring clarity to the individual's role and authority.
- Vice president: If there's a hierarchy in executive leadership among firm owners, vice president is a title commonly used by the second in command. If a firm is large, it might have multiple vice presidents who oversee different departments or divisions of the organization. Using the title doesn't outright imply ownership, so firm owners might opt to use it in tandem with another, e.g., "vice president and managing member."
A word about transparency and truthfulness
As you consider what official title to use on your firm's legal documents and marketing materials, it's important to understand any laws and regulations prevailing over what you may call yourself. A title should never mislead anyone into thinking the firm is organized as something it's not (e.g., the owner of a sole proprietorship should not use the title of "partner" as it would wrongly imply that the firm is organized as a partnership). Nor should a title give the impression an individual has more authority than they actually do. Consulting an attorney can help ensure you follow the rules and comply with any restrictions.
