What Business Address Should I Use for My LLC?

In most states, you need a valid, legal, physical address to register your business as a limited liability company (LLC), other corporation, or limited partnership. These business entities are required to designate a registered agent with a valid, legal street address at a physical location with a door and a desk. However, your business address isn’t subject to that requirement. In fact, you can use a virtual office and virtual mailing address when registering your business.

We'll discuss how to get a business address for your LLC and the many benefits of using a virtual business address vs. renting a physical office space.

Do I need to have a physical office to register my business?

No, you do not need a physical office space to register your business, but you do need a physical business address.

In the past, having a business—even a very small business—meant renting or owning office space with a real street address. Today, remote work is the status quo. Companies work with independent contractors or employees worldwide and freelancing is a viable business model, so renting a physical office space or even having an exclusive physical address is optional.

Therefore, if you're working from home, a physical office is not always necessary—but you will need a business address to set up your LLC. That said, using your personal address might not be the best idea especially if you’re concerned about privacy.

Fortunately, having a physical office space and using your home street address aren't your only options—you could also consider getting a virtual address for your LLC.

What is a virtual address?

A virtual address, also known as a virtual mailing address or virtual mailbox service, is a subscription service that allows you to acquire a real physical address for mailing or business registration purposes. These virtual addresses are “virtual” in the sense that you don't need to be physically present to use them, but they are real street addresses. When you need a physical address, these services qualify.

Business registration is one of the most popular reasons people choose to secure a virtual address, as it comes with many benefits. For example, a physical address offers credibility for small business owners.

A virtual business address service and a virtual business office space can also manage your postal mail. You can use your service to receive mail, including personal and business mail, as well as mail from other carriers besides the United States Postal Service. Virtual business address services also can be used to forward mail of all kinds.

Why choose a virtual address over a personal address?

There are many reasons to choose a virtual business address for your LLC and even more compelling reasons not to use your home address as an address for your business, even if you have a home-based business. Some of the top reasons for using a virtual business address service involve privacy, zoning laws, and liability.

Privacy

When your home street address is your business address, it becomes public domain, a matter of public record. Anybody can search your location through the Secretary of State's website. It's on your business cards, website, and all your marketing collateral. Your suppliers, vendors, and customers know exactly where you live because it is the address for your business. Should you have to deal with anybody who is disgruntled in any way, you may be putting yourself and your loved ones at risk since your home address is freely available.

Zoning laws and homeowner's associations

Some regions have laws against operating a business in a residential area. You might risk having an issue with your condo or homeowner's association, landlord, or neighbors if you're running a home-based business unlawfully. Local zoning might be an issue, too, depending on where you live. Be sure to check the rules before you move forward with using your home address for your business.

Liability

If you're registering your business as an LLC and using your home address as the primary business address, you might face difficulties if you are ever sued. For example, a debtor has the right to seize business assets, but not personal assets—which can complicate things if the business address for your LLC is the same as your personal address.

However, if you use your virtual business address as your small business address, both your real street address and your personal assets are protected. 

Benefits and drawbacks of a virtual business address

Now, let's discuss some benefits and drawbacks of establishing a virtual business address for your LLC.

Benefits

The benefits of using a virtual address for business often outweigh the drawbacks. While there are many perks to using a virtual address, the most important ones involve the service's flexibility, scalability, and advanced features.

• Flexibility. A virtual address service gives you access to addresses in just about every major city in the country, including New York, Houston, San Francisco, and beyond. If you move, you won't have to change your address for your business, and if you're a globetrotter, you can be anywhere in the world and still access your postal mail.
• Scalability. If you're growing your business operations and entering new markets, you can set up additional virtual business addresses in those regions to build trust and capture new customers. Plus, a virtual address enhances your business identity, as your address is a critical component of your professional image and reputation. Business addresses that are more than P.O. box numbers ground your business and lend credibility.
• Advanced services. As for your business mail, virtual address providers, like LegalZoom’s mail service, offer postal mail services as well as mail forwarding, shredding, and digitization. Earth Class Mail receives postal mail on your behalf and scans the contents. You will then receive a digital, sharable copy of your postal mail in your inbox. That includes tax documents, which are vital to running a legal business.

Drawbacks

The good news is that using a virtual address for business has few drawbacks. Perhaps the biggest concern is the costs associated with maintaining a virtual office address.

• Cost. You must pay for virtual business address service, so remember this when creating your budget and calculating business costs. That said, acquiring a virtual business address is still less expensive than renting a physical office.
• Dependence. Reliable though they may be, virtual mail services are still a third-party entity, meaning you’ll need to rely on them to make sure your mail is delivered correctly.

Do you need a registered agent?

A registered agent is a person or business that agrees to receive legal mail on behalf of your business. If you are registering a business as an LLC, limited partnership, or corporation, every state requires you to have a registered agent in each state where you do business in order to receive important official documents. These include tax bills, service of process (court action), and other legal information that could affect your business.

This position requires publicly listing an address where the registered agent can be reached. This location must be open and staffed during regular business hours. You can list yourself as the registered agent, but unless you use a registered agent service or have a physical office space outside of the home, your home address will be publicly available in association with your business.

How to find a registered agent address

The cost of a third-party registered agent can be quite low, but in most cases, you can save further by using the registered agent's address as a virtual address. However, a registered agent business generally doesn't forward everyday mail or handle other routine issues that a virtual office or even just a virtual address firm will handle.

So, can you use a service like a mailbox at the UPS Store or a United States Postal Service post office box as your registered agent? No. Remember: the registered agent must themselves be available at the address to receive mail. Additionally, P.O. box services don't identify and notify you immediately when you receive important mail.

How to register your business with a virtual address

If you’re ready to get the ball rolling on your business formation, you're probably wondering how to get a virtual business address and what to look for in a service.

Here are a few questions you might consider before deciding on which address to use:

• How much business mail do you expect to receive?
• Will you receive payments by check, and will they come to that address?
• Do you have other employees? And if so, will they receive mail as well?
• Will you require physical or digital mail forwarding?
• Do you receive large amounts of paper, such as contracts?

Think realistically about how your business will run at first and what it may look like in the future. Some virtual address providers offer a variety of services for different needs, while others are more simple or straightforward.

Step-by-step guide to registering your business with a virtual address

With the answers to the above questions in mind, follow these steps to register your business with a virtual address:

1. Find a provider. Choose the virtual business address plan that suits your needs. LegalZoom offers mailbox plans suitable for solo operations and small organizations, and mailroom plans for larger businesses and enterprises.
2. Choose your address. Next, you'll choose a virtual address in the state where you're registering your business. You will need to fill out USPS Form 1583: Application for Delivery of Mail Through Agent. This authorizes your virtual mail provider to collect and handle your business mail. You must have the form notarized and provide two pieces of identification.
3. File your registration. Once you have secured your virtual business address, it's time to register your business. You can register with your state, whether that’s through your local Secretary of State's office or through the SBA, or use a one-stop-shop like LegalZoom to ensure compliance and take care of everything at once. Then, it's official: Your business is registered.

Other factors to consider

Whether the location is virtual or not, here are some other things to consider when choosing a business address for your LLC.

A separate business address that isn’t a residential address is usually the best choice, but keep it simple. Ideally, a business mailing address doesn’t have too many parts. A physical street address with lots of Es and Ws and long numbers can be hard to read. Simple physical addresses on streets that are easy to spell work best.

Before settling on where your business operates and the address for your business, you should find out if there are any special rules in your state or community. You may also want to consult a lawyer for legal advice to ensure your business operations and address comply with local, state, and federal laws.

Frequently asked questions

For more information on virtual business addresses, review the following FAQs.

How do I know what virtual address to sign up for?

Before you choose a virtual address for your business, there are a few things to consider. Even though you can get a virtual business address anywhere, the address you choose should be in the state in which you register your business.

Many states have rules around what you can and cannot use as a business address. Some do not allow P.O. boxes, so you'll need to know that before you make a decision. When you're ready to register your LLC and your LLC's business address, check the requirements with your Secretary of State or get expert advice from one of LegalZoom’s verified legal partners.

Can I use a P.O. Box for my LLC?

No, most states do not let you use a P.O. Box as your business address. Therefore, you must provide a physical address, which can include virtual addresses.

How can I change the business address for my LLC?

If your business address appears on the LLC registration form filed with your Secretary of State (or similar office) then you must file a change of address or amendment to update your registration.

It's essential to have a valid and updated business address for your LLC. If the address you provided on your EIN application has changed, then you must file Form 8822-B, "Change of Address or Responsible Party — Business" with the IRS to change your business address. The IRS does not accept online submissions of this form, so you will need to send a physical copy by mail.

You should also notify the USPS of your address change. You can initiate mail forwarding through the USPS website by filling out the appropriate forms for a business address change.

Depending on the state where your business operates, you may also need to update your business address with state tax and licensing agencies.

How can I avoid using my home address for my LLC?

If you don't want to rent and occupy a physical office space, the best way to avoid using your home address is by acquiring a virtual business address for your LLC. Simply select a plan with LegalZoom's virtual mail service to oversee and manage your postal mail. A P.O. box is typically not an appropriate business address for LLC registration.

Does the IRS accept virtual business addresses?

Yes, a virtual business address is considered compliant with IRS regulations and requirements. Therefore, you can use a virtual address instead of your personal address for IRS purposes.

You can also have multiple virtual business addresses for the same company, which may be useful for companies that grow across state lines.

Do you need a business location for an LLC?

Yes, usually you will need a physical business location when registering your LLC. While the address needs to be a real street address, it doesn't have to be a physical office space where you work. This means you can use a virtual office with a virtual address as your official business address.

Jennie L. Phipps contributed to this article.