Using your home address may have some significant drawbacks
updated November 28, 2023 · 6min read
About 50% of all small businesses in the United States are home-based businesses. They come in every shape and size—from landscape designers freelancing out of their garages to a 30-person app development firm with employees all over the country and no physical headquarters. As different as they may be, they all have at least one thing in common. Each company has to decide what address to use to register its business.
The decision isn't as straightforward as you might think, and if you're reading this article, it's probably because you've figured out that using a virtual mailing address is the best option for your business. But if you're still on the fence, this article may help guide you through the pros and cons of your various options (like using your home address) as well as how to get and use a virtual address to register your business.
If you're starting a business from your home, you may be inclined to use your personal address when you register with your local secretary of state's office. After all, your home will be your office. But using your home address has some significant drawbacks.
At this point, you're probably pretty clear on why you shouldn't use your home address to register your business. But why should you use a virtual address for LLC?
The answer is simple: getting a virtual mailing address for your business protects your private information and keeps your business and personal affairs separate.
Of course, your business mailing address does much more than serve as a registration location for the secretary of state's office. You provide your business address for LLC to many people, in dozens of places:
If you're going to be using a business address for LLC in all those ways, you might as well have it work for you. A virtual mailing address adds flexibility to your business operations by allowing you to check your mail from anywhere in the world—sitting on your couch or on a bicycle tour of the Irish countryside. Wherever you have internet access, you have your mail.
With a virtual address for LLC, you can easily share mailed documents with colleagues or clients and save important information securely in the cloud. Plus, you can be sure you'll never miss an important piece of mail.
Now, let's take a minute to talk about P.O. boxes.
Some home-based businesses rent a P.O. Box to avoid providing their home address when they register or on other business documents. Unfortunately, not all states allow businesses to register with a P.O. Box, and a P.O. Box can't give you the flexibility that a virtual mailing address provides.
LLCs and corporations must have a registered agent in the state where their business is registered. A registered agent is someone that you designate to receive specific important documents on your behalf—for instance, documents from the secretary of state's office or "service of process" documents if you're ever involved in a lawsuit.
Each state creates its own rules about registered agents. In most states, you or another individual from your company can act as the registered agent as long as you have a physical street address within the state. However, someone would need to be present at that address during working hours to sign for important documents, and the registered agent's address is publicly available on the secretary of state's website.
Because someone must be physically present for a registered agent's address, you may not be able to use a virtual address for business. Check with your local secretary of state's office to be sure. Online companies like LegalZoom offer registered agent services, as do many local businesses and attorneys.
You can get a virtual business address within a matter of minutes.
If you've already registered your business using your home address, don't fret. You can always change it, and now is the perfect time to get that personal information off a publicly available website.
To learn more about Earth Class Mail's offerings, go here.
by Earth Class Mail
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