Yellow jackets are found worldwide, and there are about 16 species that reside in the U.S. They are social insects that have annual colonies; only the queen lives through winter to start a new colony in the spring. Depending on the species, the queen will pick either an underground or aerial site to build her nest. Common places for a nest are attached to bushes, trees, or the eaves of homes. Yellow jacket nests are built with a recognizable paper-like material made from chewed cellulose.