When most people hear the word “Foreign LLC” they usually think this is an LLC formed outside of the United States. This is not the case. A Foreign LLC still refers to a US company. A Foreign LLC is an LLC that was formed in one state, but is now registering (also referred to as “qualifying”) to do business in a new state. A Domestic LLC is an LLC that was formed in its “home state” and that operates in this state.
foreign llc
A foreign LLC is an LLC that was originally formed in one state but then registered to do business in another state. In essence, the LLC is “foreign” to the new state. The reason for this type of terminology is that every single state is governed by different laws. A Foreign LLC is not an LLC that is formed outside of the United States. The requirement to file for a Foreign LLC is usually to expand one’s business operations or to open an additional retail or brick-and-mortar location in a new state.
