Open comb versus hidden hole. A paper wasp nest is a single layer of cells, open to the air, hanging from a short stalk under an eave, a railing, a light fixture or a branch; you can see the cells and the wasps sitting on them. A yellowjacket nest is enclosed: a hole in the ground under a shrub with wasps streaming in and out, a gap in siding or a soffit with the same traffic, or a gray paper ball in a tree or under a deck if it's the bald-faced hornet, which is a yellowjacket in everything but name. UC IPM puts paper wasp colonies at 15 to 200 individuals and yellowjackets at 1,500 to 15,000, which is the real difference.