Who calls the shots?‌ - Celia Powell ‌ ‌

Celia Powell - "By the Numbers"

Who calls the shots?‌ ‌Season‌ ‌4 ‌ ‌

Introduction‌ ‌
So you want to restructure your sole proprietorship entity to a formalized business structure and you simply don’t know which one to select?  Corporations are a powerful force in business.‌ ‌It is important to understand how they are controlled, owned, and operated. In this episode, you will learn the key concepts of corporate structure, dig in the Leadership and Governance Fiscal and financial roles and responsibilities, and understand the corporate structure. ‌

Show‌ ‌Objectives‌ ‌-‌ ‌The‌ ‌Why‌ ‌
To help business owner’s determine the different legal business entities and what the governing and leadership structures should look like to grow to the next level. ‌

Key‌ ‌Issues‌ ‌-‌ ‌​Owner/Manager‌ ‌Perspective:‌ ‌
Business owners that have goals to grow their businesses beyond themselves, need to prepare not only their companies for transition but also they themselves must prepare for the change in roles and responsibilities as they move into corporate structure.

Major Considerations
Loss of control, can and will the owner be able to handle not calling the shots on all of the business’ matters, especially financial decisions.
Capitalization, how do we move from where we are mainly self supported and funded to going to external funding, beginning with getting financing from a bank to going public.  Going public means making an Initial Public Offering(IPO) and what’s entailed?

Reporting to Regulatory bodies, the more complex the business structure the increase in who has oversight on how the business operates. The IRS is the regulatory body that most legitimate businesses will have to comply with, depending on the operations there will be others and knowing this becomes key because of potential penalties and sanctions that can be imposed. ‌
 
 
What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Know:‌‌ ‌
Legal entity structures and governing bodies:

• C Corporations  - Board of Directors
• Limited Liability Companies - Members
• Partnerships - Partners
• Sole Proprietor - Business Owner ‌

Leadership Positions and Roles

• Chairman
• CEO
• COO
• CFO
• CAO

Article‌ ‌link:‌ ‌ ‌
Hierarchies of Corporate Structure (hierarchystructure.com)
Corporate Executive Hierarchy | Corporate Structure (hierarchystructure.com)
https://www.justbusiness.com/legal/business-entity

Shows‌ ‌
Previous:‌ ‌ ‌
Episode‌‌ ‌‌F4.001 ‌‌ Public Thoughts from a CFO Mind
Next:
Episode F4.003 The Right People on the Bus ‌

Written‌ ‌by‌ ‌Celia‌ ‌L.‌ ‌Powell‌ ‌CPA‌ ‌ ‌
Celiapowellcpa.com
Celiapowellcpa@mymoneyandmore.net‌ ‌
Facebook‌ ‌@mymoneyandmore‌ ‌
Instagram‌ ‌@mymoneyandmore‌ ‌
 

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