Foreign LLC
Definition
A Foreign LLC is the legal term states use to describe any LLC that was formed in a different US state. It does not mean an LLC from another country. If you form an LLC in Wyoming, but want to open a retail store in Colorado, Colorado will classify your business as a "Foreign LLC."
Why it matters
Many business owners get confused by this terminology when trying to expand their business across state lines. If you are doing physical business in a state other than the one where you formed your LLC, you must register as a Foreign LLC in that new state through a process called "Foreign Qualification."
Example
Sarah lives in New York but forms her LLC in Delaware because she heard it was better for businesses. Her Delaware LLC is a "Domestic LLC" in Delaware. However, because Sarah is running the business from her home in New York, the state of New York requires her to register her business there. In New York's eyes, Sarah's company is a "Foreign LLC," and she must pay New York's foreign LLC registration fees.