You may owe fiduciary duties to your corporation, even if you are the only owner. A fiduciary duty is the responsibility of every director and officer of your company. So what does it mean to have a fiduciary duty to your company? It’s all about doing what’s in the best interest for your business. Watch the video below to learn more details.

P.S. The knife in the video is an authentic ulu, which is a favorite in my kitchen!

Get the Fiduciary Duties Document Referenced in the Video

[Video Transcript]

Welcome back to another edition of Tish’s 2-Minute Tips—where we break down complex legal concepts into practical advice you can use right away.

This week, let’s talk about fiduciary duties—what they are, why they matter, and what they mean for you as an officer or director of a company. Whether you’re operating a for-profit corporation, nonprofit organization, LLC, or a hybrid like a Texas Social Purpose Corporation, you have fiduciary duties under the law.

And here’s the twist: you still owe these duties even if you’re the only person in your business. That means if you’re the sole owner, shareholder, board member, and officer, fiduciary duties still apply. They’re baked into the structure—not dependent on how many people are involved.

The Duty of Care

The most common fiduciary duty is the duty of care. This means you’re required to be informed and make decisions that are in the best interest of your company.

Think of your company as a person under the law. Let’s say your company is hungry and visits its local butcher. The butcher says, “I’ve got some amazing, locally-sourced, grass-fed beef—and I’ll even throw in a few extra pounds of Applewood smoked bacon. It’s sweet, but not too sugary. You’re going to love it!” Your company is thrilled and hosts an indulgent Sunday brunch.

But come Monday, there’s a problem. The company goes to its doctor and finds out—surprise—cholesterol levels are off the charts. The doctor refers your company to a dietitian. The dietitian reviews your company’s needs, evaluates the facts (bloodwork!), and offers a plan focused on what’s best for your company: grass-fed beef plus whole grains, fruits, vegetables, and water. In this analogy, the dietitian is the fiduciary. The butcher? Not so much. Now here’s the key distinction: The butcher was selling something he had a stake in.

The fiduciary’s role is not to promote one product or one path—they consider the full picture and advise in your company’s best interest, even if it means recommending something outside their own offerings.

Why This Matters

As an officer or director, you’re expected to behave more like the dietitian—not the butcher. That means making balanced, informed, and intentional decisions for your company, especially when no one else is around to question you.

Until next time, stay informed—and act in your company’s best interest.