A corporation organized under the laws of another state is called what?

• A. Domestic corporation
• B. Foreign corporation
• C. Alien corporation
• D. Multistate corporation

Answer: (B)

The key idea is how a corporation is classified by where it was formed relative to where it operates. When a corporation is organized under the laws of another state, it’s considered foreign to the state where it’s doing business. Domestic would apply if it were formed under the laws of the same state, alien would apply if it were formed under a foreign country’s laws, and multistate isn’t the standard term used here. So a corporation organized under the laws of another state is a foreign corporation.