Starting a small business or LLC is an excellent way to gain financial freedom and support your family, but the opportunity comes with unique challenges. Determining do you need a physical address for an LLC when joining the 33 million businesses operating in the United States is challenging. Renting office space for a company you’re running from home isn’t cost-effective.
There are several options to choose from when determining your LLC address, though you must weigh the pros and cons of each option before legally forming your new company. The two most common options are physical and virtual business addresses.
Fortunately for your burgeoning business, you’re in the perfect spot to learn more about your address options when forming an LLC and becoming a business owner and you can even register multiple businesses under one llc. Continue reading to explore your business address options today!
Do You Need a Physical Address for an LLC?
In past circumstances, when forming an LLC, it was assumed that you’d need to rent or buy office space with a physical address. After the COVID-19 pandemic, remote work has become the new normal, and many businesses no longer need office space to house workers and operate from.
Determining how to proceed when informing an LLC is confusing with a lack of a business office. The good news for your business is that a physical address isn’t always necessary when starting a company.
Many new business owners and startups consider using the home address, renting an office space, and using a virtual address. Each has pros and cons, but you’re not legally required to use a physical address for your new LLC. Technology has advanced to a point where you can use a virtual address.
Why Consider a Virtual Address?
Virtual addresses sound intimidating when you’re new to this option for your small business. Using home office address services is a wise move because it provides greater privacy for your company. It’s much better than registering your LLC under your home address.
Making your home address the LLC’s address makes it part of the public domain. You’ll lose all privacy; anyone can search your address through the Secretary of State’s office.
Your suppliers, vendors, and customers will know where you live. Any disgruntled people you’ve done business with can visit you or send you harmful packages and letters. Don’t put your loved ones at risk with your home address when forming an LLC.
It’s also wise, considering some residential areas have zoning laws against running businesses from home. You can save money with a virtual address instead of getting in trouble with your local government or renting a physical address.
You’re also running a risk if your business gets sued when using your home address. Your home becomes a business asset if you use it as your small business address. It’s an unnecessary liability that will hang over your head.
Benefits of Virtual Addresses
One of the best benefits of using a virtual address when forming an LLC is the ability to set your business up almost anywhere. Think of a major city, and nothing is stopping you from starting your LLC there with a virtual address.
You can have a Wall Street address for your small business when you choose a virtual address to form your LLC. It’s also an excellent choice for your future since you won’t need to change the address should you move. You can travel as your heart desires and still receive regular business mail.
A virtual business address is also perfect for scaling your company. You can set up shop in new markets with virtual addresses as your operations expand and grow. It’s an excellent way to build trust for your LLC and gain new customers.
The best virtual address providers will handle your mail and scan it so you can access it from anywhere. They’ll also shred it after scanning to prevent paper waste. It’s one of the best moves when you’re getting ready to set up an LLC without a physical address.
Registering With a Virtual Address
You’ll need a business address when registering your LLC and starting a company, though it’s best to consider each option before proceeding. Consider how much mail you expect to receive and if you’ll receive payments by check. You want to ensure that checks come to an address you trust.
You’ll also want to consider if you’ll require physical mail forwarding. Any additional employees might also receive mail at your business address, so consider that when sorting through your options.
Once you’ve weighed those factors, it’s time to find an address in the city and state where you want to form your LLC and start making money. The process begins with the U.S. Postal Service. Fill out Form 1583 to authorize mail delivery through an agent.
You’ll authorize the virtual address to receive and handle your mail when you fill this document out and submit it. The next step involves getting the form notarized and providing two pieces of identification.
After securing your virtual address, you’ll want to register your LLC or small business with your local secretary of state or the Small Business Administration. Your business will be officially registered after submitting the necessary documents with those agencies, and you’ll have done it without a physical business address.
You won’t encounter any issues if the virtual address is valid. It’s the best option if you can’t afford to rent an office and want to use something other than your home address to form an LLC.
Choose Your LLC Address Today
Knowing your options for addresses when forming an LLC is vital, and it’s much easier when you’re not wondering do you need a physical address for an LLC. There are several options to consider when registering your business, but you don’t need a physical address to get started.
A home address is viable but opens you to liability and a lack of privacy for you and your family. When forming an LLC, consider a virtual business address for enhanced scalability and cost savings.
Starting a business is your path to financial freedom and early retirement. Take your first step down that path by reading more of our Business and Marketing content today!