A company was incorporated in Massachusetts and has their home office in that state. What type of company is this when they do business in Florida?

• A. They are an unauthorized company
• B. They are a domestic company
• C. They are a foreign company
• D. They are an alien company

Answer: (C)

The main idea here is how states classify a company doing business within their borders. A corporation is labeled domestic in a state if it was formed under that state’s laws. If it was formed under the laws of a different state, it’s called a foreign corporation in the state where it’s doing business. Since this company was incorporated in Massachusetts and is doing business in Florida, it is a foreign corporation in Florida. An alien corporation would be one formed outside the United States, which isn’t the case here, and “unauthorized” would refer to lacking proper registration to transact business in Florida, not the basic classification.