What is the characteristic of a domestic corporation?

A domestic corporation is defined as a corporation that is established and operates under the laws of a specific state. This means that it is incorporated in that state and is subject to that state’s regulatory framework, including taxation and corporate governance rules. A corporation qualifies as domestic in its home state, where it must file its articles of incorporation and is granted the authority to operate within that jurisdiction.

This characteristic distinguishes a domestic corporation from other types, such as foreign corporations, which are formed in one state and conduct business in another. The other options reference scenarios that apply to different classifications of corporations. For example, operating in multiple states suggests a foreign corporation; being publicly traded relates to market presence rather than jurisdiction of incorporation; and having international reach indicates a global or multinational corporation rather than a focus on domestic legislation.