What is a foreign corporation?

• A. A corporation created under Florida law
• B. A corporation created under the laws of another state
• C. A corporation that provides services outside the state
• D. A corporation created under a foreign country's law

Answer: (B)

A foreign corporation is defined by where it was legally formed, not by where it operates. In Florida, a corporation that is chartered under the laws of another state is considered a foreign corporation when it does business in Florida. This differs from a domestic corporation, which is created under Florida law, and from an alien corporation, which is created under the laws of a country outside the United States. So the correct choice identifies foreign as being created under the laws of another state. For example, a California corporation doing business in Florida is foreign, while a Florida corporation is domestic, and a Canada-incorporated company would be alien.