In the United States, as in most countries, when registering a business, you will need to provide a business address. In many cases, you'll need an actual physical address, although that physical address doesn't have to be a physical location with a door and a desk.
Part of your decision will be determined by the kind of business and the legal operating structure you choose. Whether you establish your business as a sole proprietorship, a C corporation, or a limited liability company (LLC) will help you decide what business address to use to register your business and display it on your website and marketing materials.
You absolutely must use a valid, legal, physical address to register your business as an LLC, other corporation, or limited partnership. States don't allow LLCs, corporations, or limited partnerships to register using a P.O. box. Any business entity like these is required to designate a registered agent–someone available during business hours to accept legal and government documents. Registered agents must have a valid, legal street address.
Do I need to have a physical office to register my business?
In the past, it was a foregone conclusion that having a business—even a very small business—meant renting or owning office space with a street address. A lot of that has changed. Today, remote work is the status quo. Companies work with independent contractors or employees worldwide, and freelancing is a viable business model. Renting a physical office space or even having an exclusive physical address is optional. Many successful small business owners have proven that.
Whether you're working from home by choice or otherwise, the point is—a physical office is not always necessary. As many small business owners have discovered, the money you would typically allocate to an office lease with a street address could be put to much better use. You could invest it back into your small business, buy new equipment or software, or channel it into marketing.
You will need a business address to set up your company. However, using your personal address might not be the best idea. Fortunately, having a physical office space and using your home street address aren't your only options.
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 use a real physical address for mailing or business registration purposes. These 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.
Digital nomads, expatriates, and frequent travelers often rely on virtual addresses to sustain their lifestyles. However, registering a business is one of the most popular reasons for securing a virtual address, as it comes with many benefits. A physical address offers validity for small business owners.
Virtual business address services are becoming an increasingly important part of the business landscape. Virtual business address services and a virtual business office space can manage your 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. With a virtual business address service, local can be anywhere you want your business to be.
Why people choose virtual addresses over a personal address
There are many reasons to choose a virtual business address 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.
- Privacy. When your home street address is your business address, it becomes public domain, a matter of public record. Anybody so inclined 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. They know where you live because they have the physical address.
- 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 your 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. If you use your virtual business address as your small business address, both your real street address and your property small business are protected.
Benefits of a virtual business address
A virtual address service gives you access to addresses in just about every major city in the country. New York, Houston, San Francisco—it's all possible! Even if you live in Texas, you can have a Park Avenue address for your business. Plus, if you move, you won't have to change your address for your business. If you're a globetrotter, you can be anywhere in the world and still access your postal mail—even your junk mail.
Scalability is another huge benefit. If you're growing your business operations and entering new markets, you can set up local virtual 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 Post Office box numbers can be very good for small business profits.
As for your business mail, virtual address providers like Earth Class Mail, a LegalZoom company, 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.
Do you need a registered agent?
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 to receive important official documents. These include tax bills, lawsuits, and other legal information that could affect your business. You can list yourself as the registered agent, but this person or business must be open and staffed during regular business hours. If you plan to travel, take vacations, or even have a long meeting now and then, you probably should designate a different registered agent.
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? Probably not. Most of these mailbox services don't identify and notify you immediately when you receive important mail. The primary business of a registered agent service is to keep you informed.
The cost of a third-party registered agent can be quite low, but in most cases, you can't save further by using the registered agent's address as a virtual address. 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.
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 an address anywhere, the address you choose should be in the state you register your business in.
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 at the Secretary of State's office or the SBA, make some inquiries about what's allowed.
How to register your business with a virtual address
Before you register your business, you'll need a business address. First, choose the virtual business address plan that suits your needs. Here are a few questions you might ponder before you decide:
- 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?
With the answers to these questions in mind, choose the plan that suits you best. We offer mailbox plans suitable for solo operations and small organizations and mailroom plans for larger businesses and enterprises.
Next, you'll choose a virtual address in the state where you're registering your business. You will need to fill out a USPS 1583 Application for Delivery of Mail Through Agent. This authorizes Earth Class Mail to collect and handle your business mail. You will need to have the form notarized and provide two pieces of identification. If you have any trouble with this, reach out today—we can help!
Once you have secured your virtual business address, it's time to register your business on your local secretary of state's website or through the SBA. Then, it's official: Your business is registered.
You can check out our guide to registering a business for more detailed information and tips on this process.
Final thoughts
There are several factors to consider when choosing an address for your LLC registration or registration of another business entity. Registering a new business can be a complex and confusing process, but once your business address is established, you're free to move on to bigger and better things.
Whether the location is virtual or not, here are some other things to consider when you pick an address for your business.
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. Physical street addresses 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.
Choosing an LLC address can be tricky. Before LLC owners settle on where their business operates and what the address for their LLC will be, they should find out if there are any special rules in their state or community. It is worth it to get some legal advice before you make the wrong choice.
Registering a new business can be a complex and confusing process, but once your business address is established, you're free to focus on managing your business.
