A Foreign LLC refers to an LLC that is registered in a state different from the state where it is “doing business.” While most SPVs are initially registered in states such as Delaware, which offer favorable tax or fee benefits, an SPV may need to register as a Foreign LLC in the state where the SPV Organizer resides or where the SPV conducts business. Certain banks may require a Foreign LLC registration in the SPV’s home state before opening a bank account for the entity.
Read more: https://www.nolo.com/legal-encyclopedia/foreign-limited-liability-company.html