What is a Domestic Corporation?

A domestic corporation is a company that conducts business in its home state. The entity is treated as a domestic corporation by the government of its home state, and is treated as a foreign corporation by the governments of all other states in which it does business. A domestic corporation is typically able to do business in all other states of its home country without any requirement for additional incorporation.

The domestic corporation designation is important, because it means that a corporation registered within a specific jurisdiction is subject to the laws of that jurisdiction. Thus, a business registered in Delaware might be subject to different corporate laws than one registered in Colorado.

Example of a Domestic Corporation

ABC International incorporates in the state of Kansas. It is classified as a domestic corporation within that state, and is classified as a foreign corporation in any other state.