What type of corporation is chartered in a different state than the one it operates in?

A foreign corporation is defined as a company that is chartered in one state but operates in another. This means that while its establishment and legal registration occur in the original state (often referred to as the home state), the corporation conducts its business activities in a separate, different state. This distinction is important for regulatory compliance, taxes, and business operations, as the corporation must adhere to the laws and regulations of both the home state and the state in which it operates.

Domestic corporations, on the other hand, are those that are chartered and do business in the same state. Public corporations are entities whose shares are publicly traded, and private corporations are owned by a limited number of shareholders and do not offer their shares publicly. These definitions help illustrate why the term “foreign corporation” specifically applies to a corporation that is legally registered in one jurisdiction while functioning in another.