An individual appointed by a corporation or LLC to manage day-to-day operations and carry out the decisions of the owners or board of directors.
What is an Officer?
In a C-Corporation, officers are formal positions appointed by the board of directors to handle the company’s daily management. Common officer roles include Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO), President, Vice President, Treasurer, and Secretary. Each role comes with specific responsibilities, such as overseeing finances, managing operations, or maintaining corporate records. Officers are distinct from directors, who focus on high-level governance and strategic decisions, and from shareholders, who own equity in the company. In many corporations, one person can hold multiple officer positions at the same time.
For LLCs, appointing officers is not legally required in most states, but members (owners) may choose to create officer roles, especially in multi-member LLCs, to define responsibilities clearly and present a more formal business structure to banks, investors, and partners. These officers may have similar titles and duties to corporate officers, but their powers are usually defined in the LLC’s operating agreement rather than state law.
Officers act as authorized representatives of the company, meaning they can sign contracts, open bank accounts, and handle other official matters on behalf of the business. While officers manage daily operations, they remain accountable to the board of directors (in corporations) or the members/managers (in LLCs).
For non-U.S. founders, appointing officers can be a strategic way to delegate management responsibilities, meet certain state or banking requirements, and ensure smooth business operations, even if the owners are located abroad.
