Over the last few years, working from home has skyrocketed in popularity for many types of entrepreneurs. From the significant cost savings of not leasing an office or storefront to the increased productivity of having a commute that’s as long as the walk from your bed to your desk, using your home address for your LLC can just make sense.
Running your business from home doesn’t mean you need to use your home address and plaster your personal info all over public documents. We’ll tell you more about getting a virtual address for your LLC and talk about why this might be right for your business.
Many small business owners use their personal residence address on the documents they file with the state and the Internal Revenue Service (IRS) when they form their business. The main advantage of using a home address for your LLC is that there’s no additional cost involved — you have a physical address as required by the state, and you don’t have to pay for a separate mailing address. Using a virtual business address can be costly to set up and often requires you to pay for forwarding from the virtual office address to your home.
Using your home address for your LLC also has the advantage of being easy to set up. You don’t need to take any additional steps when filing your documents. Simply use your home address on all registration forms for your LLC, and you’re good to go.
While it’s clear that under most circumstances you can use your home address for your LLC, an important question is whether you should use your home address for your business. Owning your own home also gives you more control over how you can use your property and may free you of certain restrictions on having a home-based business. You could also use your home as your physical office space or solely as a mailing address for business-related mail.
If you don’t want people or business-related mail coming to your home, you can always get a P.O. box and keep your home address as the one you use on certain documents that require a physical address. While there are a number of advantages to using a home business address, they may also be reasons to avoid using your home address for your LLC.
A big disadvantage of using your home address for your LLC is that if you do need to move your company to a commercial office space, you’ll need to update your address on every document on which your address appears.
You also may want to avoid using a home address on your website or in public documents to protect your family or privacy. Depending on your business type or other issues, listing your home address can cause serious security concerns.
Generally, there are two kinds of virtual offices, and you’ll need to decide which kind is right for your business. These virtual addresses for business include:
This type of virtual office is typically used in conjunction with a P.O. box address. Solo entrepreneurs can put together a suite of software, apps, and programs needed to conduct work remotely. This is a common approach for small business owners who have employees dispersed over a broad area, since software can keep people in close contact.
A location-based virtual business address is a real address tied to a physical location, like 123 Main Street, Your State, Your Zip Code. However, your mail will go to a virtual address for your LLC, not your home address. Companies that provide virtual business address services are usually located in areas with a lot of other businesses, like downtown areas of cities near you, rather than in a residential location. Depending on your preference and your provider, your virtual business address will most likely be located in a well-known part of a city.
Virtual mailing addresses offer a number of benefits over a home address for your LLC.
Virtual addresses are usually located in city centers and business parks rather than rural areas or residential neighborhoods. In many cases, having a virtual office address on your company’s letterhead, website, and marketing materials presents a more credible business presence than using your home address.
Undoubtedly, you’ll encounter many situations where your home address is visible to the public if you don’t use a virtual address for your LLC. For example, when sending email newsletters or other electronic communications, the CAN-SPAM Act requires your company’s physical address on each communication you send. This, too, can help build credibility with your customers.
Even if you try to limit the places where you show your home address, many required legal filings with the state are a matter of public record, and your address will be a matter of public record. As mentioned above, a virtual address can resolve many privacy concerns.
Some communities and homeowners’ associations simply restrict home-based businesses, even if your work brings little traffic into the community. If you’re a renter, your lease may have a clause prohibiting you from running a business from home. Be sure to check any legal requirements and confirm whether they’ve changed since 2020. However, with a virtual business address, your home address would not be the legal address of your business, and you may be able to avoid any legal restrictions on your business if your business does not violate any other laws or ordinances.
A number of companies provide virtual business address services, including P.O. boxes. Four steps to getting a virtual business address include:
Sign up for a plan with your chosen provider that fits your budget, and choose an address that suits your business needs.
The U.S. Postal Service requires you to file something called Form 1583 along with two forms of ID. You’ll need to have this notarized to receive your business mail.
Make sure to update your address with any important counterparties and clients.
You’ll need to update your business entity documents in the state where your virtual address is located.
When you’re ready to form your company and get started, our LLC formation service is an excellent resource to get you up and running quickly. Additionally, our full suite of business services and tools support you while you get started and help your business grow and thrive. Let us take care of formation, document amendments, compliance, and more, so you can focus on the business you love.
Disclaimer: The content on this page is for informational purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Most states will ask you to provide a business address on your entity formation filings. You can use either your home address or a virtual office address if you’re not ready to rent an office or commercial space.
You can use a home address for your LLC. Many entrepreneurs start using their home addresses for their LLCs and transition to using a virtual business for their LLCs once their companies grow or they do business in multiple states or countries.
Most states don’t allow you to use a P.O. box for a business address, but you may be allowed to use it for a mailing address. Be sure to speak with trusted advisors and check your individual state’s rules to confirm whether you can use a P.O. box for your business address.
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