Find the right lawyer now

Principal Place of Business

Find a Local Business Lawyer near You

What is a Principal Place of Business?

A corporation’s principal place of business is defined as the place where a corporation’s officers direct, control, and coordinate business activities. It has been also called the "nerve center" of a corporation and is normally the corporation’s headquarters. Depending on individual state laws, corporations are usually required to designate their principal place of business with the Secretary of the State.


In order to determine the principal place of the business, courts consider two questions:

  1. What state has the largest volume of the corporation’s operations?
  2. What state has the highest number of the corporation’s top executives?

If the answer for both questions is the same, then that state will be the principal place of business. If the answers differ, then courts will look at which state maintains the substantial preponderance of the operations.

Why is This Important?

Principal place of business is important for jurisdictional purposes and will be used to determine the location of a lawsuit. Issues of this nature should be handled by an experienced corporations lawyer.

Photo of page author Vahagn Vartanian

, LegalMatch Legal Writer

Last Modified: 07-25-2013 11:22 AM PDT

Law Library Disclaimer
  • No fee to present your case
  • Choose from lawyers in your area
  • A 100% confidential service
What is LegalMatch?

We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.