What is a Domestic LLC?
A domestic LLC is a Limited Liability Company formed in the same state as its principal office. Typically, the members of a domestic LLC are residents of the same state, and it does not conduct business outside of that state. The laws governing domestic LLCs vary by state, but all require the filing of Articles of Organization to be recognized as a legal entity.
Reasons to Domesticate an LLC
One reason to domesticate an LLC is if you originally formed your business in a state where you do not reside. Here are some more reasons to consider domesticating an LLC:
- You want to base your business in a state you have moved to.
- You want liability protection for members.
- Domestic LLCs offer flexibility in management and operations.
Difference Between Domestic and Foreign LLCs
What’s the difference between a domestic and foreign LLC?
- A domestic LLC is a Limited Liability Company formed in the same state as its principal office. This entity provides personal asset protection and limited liability for its owners (members). Regardless of where an LLC is created, there are commonalities regarding how the LLC is formed, the benefits of the LLC, and how the LLC is governed and managed.
Registering a Foreign LLC
The costs and requirements to register a Foreign LLC vary by state. For your convenience, we’ve created a table showing the fees and forms required by each state to qualify as a Foreign LLC. Domestic LLCs have an easier time on taxes compared to foreign LLCs. It’ll also be helpful if you’re calling your Secretary of State’s office or speaking with your accountant.