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Domestic Vs. Foreign

Distinguisning Between Domestic and Foreign

This topic will address the following questions:

  • What is the difference between domestic and foreign entities?​​​
  • How do I know if I am a domestic or foreign company?

Background:

Many believe that a foreign entity is one from another country. However, the individual States in the U.S. always refer to a company formed in another state as a foreign entity. Below are the definitions of foreign and domestic.

Domestic Vs. Foreign Entities

Domestic:
​A U.S. company doing business in the state in which it is incorporated is considered a domestic entity.

When purchasing Domestic registered agent representation, you are purchasing representation service for a new or existing Illinois entity that is formed (organized) or going to be formed (organized) in the State of Illinois and is not formed (organized) in any other state.

Foreign:
​A U.S. company conducting business in one state when incorporated or chartered in another is considered a foreign entity.

If your company wishes to conduct business in Illinois and Illinois is not the state in which it was incorporated, you will need to qualify to do business in Illinois before you establish a business presence in Illinois.

When purchasing registered agent service for a foreign entity, you are purchasing representation service for a new or existing entity organized and already doing business in a state other than Illinois that intends to establish (qualify) a business presence in Illinois (aka foreign qualification).