foreign corporation


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foreign corporation

n. a corporation which is incorporated under the laws of a different state or nation. A "foreign" corporation must file a notice of doing business in any state in which it does substantial regular business. It must name an "agent for acceptance of service" in that state, or the Secretary of State in some jurisdictions will automatically be that agent so people doing business with a foreign corporation will be able bring legal actions locally if necessary. Example: the Whoopee Widget Corporation is incorporated in Delaware. It has a sales office in Arizona, which does not make a guaranteed refund to Jack Jones of Arizona. Jones can sue Whoopee in Arizona and serve the Arizona Secretary of State or Whoopee's designated agent.

References in periodicals archive ?
964-l(c)(6), a foreign corporation is not required to adopt an accounting method for purposes of computing E&P until the year in which the foreign corporation's E&P becomes "significant" for U.
corporation is required by Internal Revenue Service regulations to submit a Form 5471 for any Controlled Foreign Corporation (CFC) with an accounting period ending with or within the U.
In this article, we'll assume the recipient of the fees is a foreign corporation.
subsidiary of a foreign corporation is subject to net basis U.
Before the 2004 Act, even if a foreign corporation was organized in a qualified foreign jurisdiction, any dividend received from that corporation would not be treated as qualified dividend income if the corporation was a FPHC, (13) a FIC, (14) or a passive foreign investment company (PFIC), for the current year or the preceding tax year.
shareholders are not taxed on the income earned by a foreign corporation until that corporation repatriates the income by payment to the U.
Example 3: Foreign corporation F owns a 20% interest (capital and profits) in partnership PS with a basis of $2 million.
Four major pieces of legislation have defined and extended the concept of a controlled foreign corporation and the mechanism by which foreign corporation earnings are includable in the U.
Many transactions at the foreign corporation level have no current effect on the shareholder's U.
Moreover, the company said the Alabama domestic shares tax--which foreign corporations do not pay--did not offset the discrimination resulting from the foreign corporation franchise tax.
The IRS issued temporary regulations on June 7 governing whether a foreign corporation has "substantial business activities" in the foreign country in which, or under the law of which, the corporation is created or organized, compared to the total business activities of the expanded affiliated group (T.

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