In the US, foreign limited liability company, or foreign LLC, is defined as a LLC that was formed in one state (i.e. its domestic state) and registered in other states because it is transacting business in those other states. The term “foreign” means that the primary location of the business is outside the state. For example, if you have an LLC in Ohio and you are selling products in Indiana, you must register as a Foreign LLC in that state.

The opposite of a domestic LLC or corporation is a foreign LLC or corporation, which operates in a different state from that in which it was organized. An LLC formed in a foreign country that would not be recognized by a US state.

If you do business in several states, you must register in each state where you are doing business. The original state in which you conduct business is the domestic LLC; all succeeding states are registered as foreign LLCs. If you fail to register, you are subject to the fines and penalties associated with business in that state.

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