Alien Corporation
A company needs to be registered or incorporated in a country other than the United States, and must do business in at least one US state to be considered an alien corporation.
Updated: October 6, 2023
A company needs to be registered or incorporated in a country other than the United States, and must do business in at least one US state to be considered an alien corporation.
United States territories, including the US Virgin Islands and Puerto Rico, may or may not be considered foreign countries depending on the total income and stocks of the business.
A country should possess a physical presence in that area, hire employees that live in that area, revenue comes from that area and in-person meetings with clients or customers occur in that area for 'doing business' in a certain state or country.
The term alien corporation is only used for the United States and the term foreign corporation is used by other countries. However, foreign corporation is used by the US to identify companies that function in a different state than the one in which they are registered.
Corporate tax software is generally used by many businesses to keep up with the economic and administrative details surrounding an alien corporation and to ensure nothing gets missed, especially if they have to register and file in more than one states. The record of all important documentation and revenue for alien corporations can be stored in this software.
Registration, Tax form 20-F, Tax form 6-K, Tax form F-1 and Tax form 1120-F are five requirements that businesses must comply with in order to run alien corporations in the United States.