Legal Definitions - domestic corporation

A domestic corporation is a type of business that operates within the jurisdiction where it was incorporated. This is different from a foreign corporation, which conducts business in a jurisdiction other than its place of incorporation. Domestic and foreign corporations can exist between different countries or regional jurisdictions, such as provinces or states.

• A company that is incorporated in California and only does business in California is a domestic corporation.
• A company that is incorporated in New York but has operations in California is a foreign corporation in California.

These examples illustrate the concept of domestic and foreign corporations. A company that is incorporated in a certain state or province is considered a domestic corporation in that jurisdiction. If the company operates in another jurisdiction, it is considered a foreign corporation in that jurisdiction.

When forming a corporation, business owners can choose where to incorporatebased on various factors. Some may choose based on convenience, while others may consider tax laws or legal protections. For example, Delaware is a popular state for incorporation due to its business-friendly tax laws.

Overall, a domestic corporation is a type of business that operates within the jurisdiction where it was incorporated. This is an important concept for business owners to understand when forming a corporation and conducting business in different jurisdictions.