A domestic corporation conducts business in its home country. It is often taxed differently than a foreign corporation.
Characteristics of Domestic Corporations
- A domestic corporation can easily do business in other states where it filed its articles.
- Many incorporate in their home state.
Characteristics of Foreign Corporations
- A foreign corporation complies with regulations of both its home country and the host country. This can add complexity to operations.
- It is a foreign corporation when doing business in another state.
- For example, a corporation incorporates in Delaware but does business in California, Florida, and Texas.
Key Differences
What is the difference between foreign and domestic?
- A domestic corporation does business in its home country.
- A foreign corporation does business in a country different from its origin.