| Normally they are refering to the defenant, as to which court has jurisdiction,
Being served is when and how they recieve notice of the law suit.
Remember the KISS rule, to keep it simple, go and file, if the court accepts the case, there will be a hearing, the other party then has the right to object to the jurisdiction at the time they recieve the notice.
For example if we have a contract and we signed that contract or some civil action happened in NC, a NY court has no jurisdiction at all, same in all areas, So the event will have to happen in the jurisdiction of the court you are filing in. You could not file in NY for a event that happened in NJ.
And it has to be in the right county, so if happened in county A but you live in county B, you have to file in A since B would not have any jurisdiction over it.
And remember in the end, even if the court rules in your favor, that does not mean they will pay, if they still refuse to pay, you will still have to get an attachment, a garnishment and the such, which doing it out of state gets harder
** I sue people regularly in small claims court | 
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