Domestic or Foreign LLC

Domestic or Foreign LLC

Before forming an LLC, you need to decide which type of LLC it will be:

  • domestic or foreign
  • member-managed or manager-managed
  • single-member or multi-member
  • whether it will be a professional LLC

Domestic or Foreign LLC

A person wishing to form a limited liability company must decide whether the company will be a domestic company or a foreign company. A foreign limited liability company is one formed in one state that does business in another. A foreign LLC is subject to both states’ laws, but may benefit from tax laws, or other laws, specific to their state of formation. Delaware has been recognized as being favorable to business.