If you are starting or running a business, you're probably no stranger to paperwork. From signing contracts to signing up for all kinds of services, there's a lot to juggle. You may not have anticipated asking yourself, do I need a physical address or a mailing address?
The difference between a physical address and a mailing address is important for business owners and entrepreneurs to know. For certain business practices or paperwork, business owners will require certain types of addresses.
Mailing addresses differ from physical addresses in a few important ways. Knowing the difference can help you know what type of address you need for your business.
What is a mailing address?
A mailing address is an address that senders can use to send you postal mail. For many people and businesses, this is your home or office address. However, for some people or businesses, a mailing address is not their home or office address.
A common example of a mailing address is a P.O. box. A P.O. box is a mailing address but not a physical address. Using a P.O. box, senders can make sure postal mail gets to you. However, your location remains private.
What is a physical address?
A physical address, on the other hand, describes a location. If you receive postal mail at your home, your residential address is a physical address and a mailing address. However, some people or businesses maintain a physical address separate from a mailing address. While a physical address can be a mailing address, that's not always the case.
Physical address meaning
If your company operates out of a physical office, then your office is the physical address. However, if your company does not require a physical space to run, you might not have immediate access to a physical address. Fortunately, there are options.
Physical address vs. mailing address
The difference between a physical address and a mailing address is that a physical address indicates the recipient’s location, while a mailing address does not necessarily do so. A post office box address is a good example of something that is a mailing address but not a physical address. This is because the United States Postal Service (USPS) can deliver mail to the post office box and have it reach the recipient, but the recipient is not physically located at the post office. People may use such an address if they want to keep their physical location unknown, need a shipping address for large parcels, or for various other reasons.
Mailing address vs. shipping address
While a mailing address is an address to which a letter or parcel can be sent, a shipping address is an address to which packages and parcels can be sent. Most physical addresses are both mailing addresses and shipping addresses, as they can receive packages delivered by USPS or private carriers. The exception is P.O. boxes, which can only receive mail and parcels via USPS. Private carriers cannot deliver their packages to P.O. boxes. The term “shipping address” is typically used in the context of ordering goods via mail, such as by catalogue or online, because the buyer must have a valid physical address to which the seller can send the purchased goods.
What are mailing address standards?
In order for the USPS to correctly deliver postal mail, the country follows a set of mailing address standards, vital guidelines that help make sure postal carriers can find the right location efficiently. Mailing address standards have several components, such as the use of building numbers and ZIP codes, which serve as unique identifiers for specific geographic areas. The USPS ZIP code system is related to topologically integrated geographic encoding and referencing (TIGER) data. This data is used by the Census Bureau in matching geographic and demographic data, but it also aids in assigning each location a unique ZIP code to ensure efficient routing of mail.
The role of ZIP codes
ZIP codes play an important role in ensuring the mail gets to its destination, whether to a physical address or a mailing address. The ZIP code is a five-digit identifier of a given area, which assists in mail delivery to the correct destination, whether it's a post office box, street address, or virtual address.
The importance of a business mailing address
It is extremely important for a business to have a trustworthy mailing address, since this piece of information serves as a key element in establishing professionalism, credibility, and accessibility. Business owners who work out of their homes may want to get a mailing address distinct from their residential address so as to keep their personal information private and to create proper separation between their personal and business affairs. Such business owners can do this by getting a virtual address, which is an address that can receive their mail but at which they don’t reside or do business. They can also opt for a P.O. box, but that may not look as professional as a physical street address. In some cases, having a business mailing address may be required for regulatory compliance, legal documentation, and official correspondence.
Do I need a physical address for my business?
If you are an aspiring business owner, you probably know whether or not you need a physical office to operate your business already. For example, if you need a physical office for your business, let's say you're planning to open a brick-and-mortar boutique, you know the answer to this question upfront. If you require a physical office for your business, you don't need to worry about finding an additional physical address because your office takes care of it. Of course, you can always save time and effort from the postal mail services that come with a virtual address or mailbox.
However, for certain types of businesses, the answer to this question can be a bit murky. Remember that even if you don't need an office, you might still need a physical address. For example, if you operate a consulting business and work with clients entirely over Zoom or Google Hangouts, you don't need an office to operate your business.
However, if you set up your business as a limited liability corporation (LLC), limited partnership, or limited liability partnership, you will need to have a registered agent in the state your business is registered.
LegalZoom defines a registered agent as an “individual or entity which has been designated by the LLC to receive service of process notices, government correspondence, and compliance-related documents on behalf of the LLC."
If you don't have an office space, you will need to have a physical address for the registered agent to use. However, that doesn't mean that you need to run out and find an office to rent. For businesses that operate remotely, a registered agent used in conjunction with a virtual address can help solve this issue.
Another type of physical address: virtual addresses
Despite what it sounds like, a virtual address is a real, physical address that can accept postal mail. However, they're called virtual addresses because you don't need to be physically present to receive postal mail there.
But what does this have to do with you and your business? For entrepreneurs and small business owners, virtual addresses offer several benefits.
For LLCs, a virtual address fulfills the requirement of a physical address for your registered agent. Also, virtual addresses are a popular choice for registering a business at the state or federal level. A virtual address offers a shortcut that can save you time and money for businesses that don't need a physical building or office to operate.
Virtual addresses can also accept postal mail and packages on your behalf. This will come in handy if you need to receive postal mail for your business and don't want to share a residential address with customers or partners.
If you expect to receive postal mail related to your business often, you may consider going one step further and signing up for a virtual mailbox. A virtual mailbox comes with a virtual address and offers postal mail scanning services that allow you to access your postal mail, like email.
Virtual address services typically offer things like postal mail scanning, forwarding, or storage on demand. However, these costs can add up. If you know you will be regularly receiving postal mail, it is likely more cost-effective to sign up for a virtual mailbox than a virtual address alone.
Signing up for a virtual address
Whether you know you're going to require a physical address for a registered agent or just want to keep your residential address private, a virtual address can be a viable solution for you.
Physical address example
To choose your virtual address, you'll want to know where you plan to register your business or what type of address you want to publicize. For example, if you're looking for a premium address, you might consider signing up for an address in a major city on a street like Park Avenue. Of course, where you plan to register your business will be a determining factor as well.
Once you've made up your mind about where your virtual address should be, you can sign up for a location of your choosing.
Are military post offices physical addresses?
Military post offices (MPOs) are shipping addresses at which military personnel stationed overseas can receive mail. Military addresses differ from traditional street addresses since they function as community mailboxes for a given military post. Military post offices allow domestic mail to be routed quickly to servicemembers. A military address typically includes the recipient's name, their unit, the designation of the APO (Army Post Office) or FPO (Fleet Post Office), and a unique ZIP code.
Can private carriers deliver to mailing addresses and physical addresses?
Private carriers like UPS, FedEx, and DHL can deliver mail to physical addresses, just like USPS can, but they cannot deliver to P.O. boxes. Only USPS can do so. Carriers bring shipments to recipients at their chosen location, whether it's a residential home address or another type of physical address.
Must billing addresses be physical addresses?
A billing address is an address to which a bill for goods or services can be sent to reach the correct recipient. Billing addresses do not have to be physical addresses. While billing traditionally involved mailing invoices to a physical address, modern digital transactions have opened up the definition of billing addresses. Billing addresses can now be virtual addresses, providing a convenient way to receive a bill. However, in some circumstances, a physical address may still be necessary for billing purposes.
Make smart decisions for your business
Knowing the difference between a physical and a mailing address can help you be better prepared to make important decisions about your business. Most importantly, you want to keep in mind that you may be required to have a physical address depending on your business type, even if you don't need a storefront or office to run.
If you find yourself needing a physical address but don't want or need to invest in office space, consider a virtual address or virtual mailbox. These solutions can not only solve your immediate needs, but they'll also be flexible, so you never have to worry about what happens if you move to a new location.
FAQs
What are the differences among mailing addresses, residential addresses, and physical addresses?
The mailing address can be linked to an office where mail is collected for all apartments or offices, or it can be the location of your P.O. box. A mailing address is not always a physical address. Sometimes, it's a virtual address.
Your residential address is the real street address where you live. This is the address you provide to friends and family when they come to your home.
A residential address is the real street address of one’s home, which is a form of mailing address. However, not all mailing addresses are residential addresses, as mailing addresses can also be stores, offices, P.O. boxes, virtual locations, or other options. Residential addresses most commonly receive personal correspondence and packages.
A physical address is the physical location where the mail’s recipient is business is situated. A physical address can be a home, an office, or another physical location.
Can a mailing address also be a physical address?
Yes, a mailing address can also be a physical address, such as when the address is a home or business office. But mailing addresses aren’t always physical addresses. Other mailing addresses are P.O. boxes or virtual addresses, which may not match a physical location.
Does my business need a physical address?
You may not need a physical address for your business. Whether or not you need one will depend on a number of factors such as your business type, the legal requirements where you live, and whether you are open to customers in a physical location. In one consideration, might need a physical address at which your registered agent can be located if you operate an LLC, limited partnership, or similar entity.
What are virtual addresses, and how can I get one for my business?
Virtual addresses are actual, physical addresses that can accept postal mail, but at which no one needs to be present to receive mail. Virtual addresses are frequently used by businesses as a registered agent address. Virtual address services might provide services like mail scanning, forwarding, or storage.
To get a virtual address for your business, sign up with a service provider that manages virtual addresses. You can choose from several locations, including major cities, and you will have to pay for the service.
Can I get mail from USPS and private carriers?
Yes, USPS and private carriers like UPS, FedEx, and DHL can deliver mail to physical addresses, but private carriers can’t ship items to P.O. boxes. Only USPS can deliver mail and shipments to P.O. boxes.
