The Chief Operating Officer (COO) is the executive responsible for managing a company’s daily operations and ensuring that business plans are effectively executed—often appointed after an LLC or corporation is formed to support growth and efficiency.
What is a Chief Operating Officer (COO)?
In a U.S. business, the Chief Operating Officer (COO) is typically the second-highest-ranking executive after the CEO, tasked with overseeing the company’s internal operations and ensuring that strategies translate into smooth, efficient workflows. While not required by law for LLCs or corporations, the role of COO is often appointed post-formation when a business begins to scale, needs clear operational leadership, or when the founders wish to separate strategic decision-making (CEO) from day-to-day management (COO).
In an LLC, a COO can be designated in the Operating Agreement or appointed by the members through a resolution. In a corporation, the appointment is generally documented in board minutes and aligned with the company’s bylaws. The COO manages various operational aspects such as staffing, production, logistics, service delivery, and process optimization. They work closely with department heads and report directly to the CEO, ensuring that goals set by ownership or the board are met on schedule and within budget.
For non-U.S. founders, appointing a COO—particularly one located in the U.S.—can be advantageous for handling domestic operations like vendor coordination, employee management, and compliance tasks that may be more difficult to manage remotely. This appointment can also provide banks, partners, and regulatory bodies with a clear point of contact for operational matters.
Ultimately, the COO bridges strategy and execution, ensuring that the company’s vision is supported by strong processes, efficient workflows, and effective resource management.
