Domestic LLC
Definition
A Domestic LLC is an LLC that is operating within the specific state where it was originally formed. In state government terminology, "domestic" simply means "in-state," while "foreign" means "out-of-state."
Why it matters
When you go to a state's website to form your LLC, you will usually see two options: "Form a Domestic LLC" or "Register a Foreign LLC." If you are creating a brand new LLC in that state for the first time, you are forming a Domestic LLC. If your LLC already exists in another state and you just want to expand into this state, you are registering a Foreign LLC.
Example
Jessica lives in Georgia and wants to start a bakery. She goes to the Georgia Secretary of State website and clicks "Form a Domestic LLC." Because her business is formed in Georgia and operates in Georgia, it will always be a Domestic LLC in the eyes of the Georgia government.