A virtual address for your business can solve a few problems, including privacy concerns arising when operating your business from home.
Many small businesses find that working from home has many advantages, ranging from the substantial cost savings of not having a lease for a business to the potential for more excellent performance and effectiveness. However, just because you operate your business from home doesn’t mean that you should make your home address your company address.
Virtual address providers offer address-only services, including an actual street address where you will receive packages and mail at an unsecured location and protect your privacy. You can also avail of comprehensive services, such as meetings space and support for administrative tasks.
Who Needs A Virtual Business Address?
In many ways, using a digital business address could give small-scale entrepreneurs the most beneficial of both. With a virtual address for your business, it is possible to present your business with a professional, polished appearance to potential customers. At the same time, much of the work involved in managing your company can be completed in the comfort of your home.
Every business can benefit from the use of a virtual office address. Suppose you’re a sole proprietor or operate your company as an LLC or an organization. In that case, you can use the virtual office address as your company’s legal address. It is possible to receive regular business correspondence from your virtual address and all legal letters to the federal government.
Utilizing A Virtual Address In The Articles Of Organization
Establishing an LLC is fast and easy and can bring many advantages to your company. One of the first steps to start the LLC process is filing “Articles of Organization” with the state where you are located. In the Articles of Organization, you must provide an address for your company.
In most cases, it is permissible to use a virtual office as your company address on the Articles of Organization.
A Virtual Address To Your Registered Agent Address
The term “Registered Agent” refers to a person who is a registered agent is someone who can receive official legal and other forms for your company. All corporations and LLCs must have a registered agent.
A Registered Agent needs to maintain a physical address to accept these documents. The Registered Agent must be at the physical address during working hours. A virtual office address isn’t appropriate for a Registered Agent address.
Can I Use A Virtual Address To Get My EIN?
Yes, you can use your virtual address for an Employer Identification Number (EIN). Because the address you use for your virtual account is an address, you can use it to send correspondence and record essential documents like your Articles of Organization or your EIN documents.
However, ensuring that your virtual address is not a PO Box is crucial, as this could result in problems later on.
What Are The Benefits Of The Virtual Office Address?
Virtual business addresses can provide numerous advantages over a traditional home address for your company.
Professional Appearance
The virtual business address is generally situated in business districts and not residential areas. In many instances, using your office’s virtual address on your company’s letterhead and other business correspondences gives an appearance that is more professional than a regular address.
Based on your industry, having a professional appearance can be an essential tool to build credibility with potential customers and maintain trust with current customers. Every place where the prospective client comes across your business address provides an opportunity to earn credibility and trust. Based on your location, it is possible that having a virtual address for your business is the best choice.
Privacy
Even if you operate an online-only company, there will be many instances where your address is available to interested people. For instance, if you’re running an email newsletter you send to your customers and subscribers, your law, known as the CAN-SPAM Act, obliges you to include your actual number in every newsletter you send out. However, beyond that, customers prefer businesses with an address that is physically located over one that offers no clue as to the place it’s located.
That means that if you use your home address as your corporate address, it is all over the world for anyone to view. Even if you do your best to be careful where you place an address, other types of legal reporting and filings, like the information about the registered representative of your company, will become public records. For many, the public record can bring up several important privacy issues. If this is a concern for you, having a virtual business address can significantly remove privacy issues.
Event Spaces
Alongside offering you the corporate address that you can use on all your business correspondence, a lot of virtual business address providers also provide their clients with the possibility of meeting rooms that are professionally designed as well as the presence of an on-site receptionist who will greet clients. The possibility of booking the space for meetings could be included in the address of your virtual office or could be an added feature you can use at a low cost.
If you frequently need to meet with clients or customers and prefer not to conduct your meetings at your house, an online business address that offers meeting rooms can be an economical option than booking a space. Additionally, it is an option that is more professional than scheduling your client meetings at the local coffee house.
Legal Limitations
Based on the location you live in depending on where you live, you could face various restrictions when operating your business from your home. For instance, restrictions on zoning could hinder you from operating the business legally from your home. If you’re leasing, your lease could contain a clause that prohibits the operation of an enterprise from the premises you rent.
If you have a virtual address for your business, your home address will not be the official address for your business.
What Are The Disadvantages Of A Virtual Office?
Although having a virtual business address offers many advantages, it has several disadvantages over using your home address as your official business address.
Cost
Suppose the service for virtual office addresses you’re looking at is reasonably priced and affordable. In that case, you’ll be required to spend money on it every month. It doesn’t cost anything extra to operate your business from your house. For most small-scale entrepreneurs, particularly those just beginning their journey, there is an obvious benefit of having a home address as their corporate address.
Suppose a virtual office has features like meeting rooms. In that case, The cost of offering these additional services is usually included in your monthly cost. It would help if you considered the frequency of these extra features to determine whether the extra cost is appropriate for your specific requirements. For instance, if you don’t hold many meetings or have meetings, you might prefer the virtual business address service with an address-only cost, with additional charges that are charged per use rather than being an element of the monthly cost.
Convenience
The virtual address may not be as practical as having your home as your business address; however, the inconvenience might be minimal based on the situation. For instance, with a virtual business address, you’ll have access to your correspondence from your business instead of having it delivered to your residence.
If you intend to use features like conference rooms, you’ll need to prepare for the additional time it takes you to travel to your meetings and return. Other expenses, such as public transportation or parking fees, would not apply when you hold business meetings at home.
For many small-scale businesses having a virtual address is sense. However, it has negatives. Depending on your business’s specifics, a virtual address is the best choice for your company.
Is The Address I Provide On My Federal EIN Application Part Of Public Records?
No. Information you supply to the Internal Revenue Service (IRS) to process an EIN application is not made available to the public.
Privacy is generally more of a concern at the state or local level. Suppose you make the Articles of Organization or Incorporation with the Secretary of State (or equivalent office). In that case, the details you provide are often part of the public record. (Though it is dependent depending on your state.) That means that any information you add–such as your address, name and/or address will be searchable online when it comes in conjunction with your company. Many companies, including sole proprietors, utilize services like Northwest, which means they don’t need to list their addresses on their company formation documents.
Can I Use The Registered Agent’s Name When Applying To Obtain The EIN For My Company?
Yes, you can. But you don’t need to use the registered agent’s address as the address you give is not public. It is recommended to use the most appropriate address for your company. This could be your home address or the office building where your business is headquartered–whatever the case, it should be where you’re sure to receive any correspondence from the IRS.
Do I Need To Amend My Address With IRS?
Yes. If the address for your EIN is ever changed, it is essential to change the address to the IRS. It is possible to modify the address of the EIN of your business at any time by submitting Form 8822B, Change of Address or Responsible Party for Corporate.
Suppose you’re the one who has obtained an EIN for your business and has added your name to your EIN application. In that case, you’re called “the “responsible person.” It is possible to utilize Form 8822-B to alter the address of your business or to modify the person listed on the file as the business’s “responsible company’s responsible party.”
