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Distinguishing 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?

Useful Background Information

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 a 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 was initially formed in a state other than Illinois, you will need to qualify to do business in Illinois before you establish a business presence in this state.

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).