- Set up a physical address for your business while maintaining your privacy and security
- For those who run home-based businesses or otherwise don’t wish to divulge a company’s physical location
- Establishes a place to receive mail and important documents
Many companies are eager to share their brick-and-mortar location to attract customers or make sure clients know where to visit. But setting up a business address can be more difficult if you don’t have a permanent location, or if your business is home-based and you don’t want to disclose where you live.
Setting up a virtual business address allows you to establish a physical mailing address where you will receive mail and important documents. Some companies also provide certain shared business services for new companies.
How a virtual business address works
A virtual business address typically provides you with a third-party address to use for your company as well as mail processing services. The service provider creates scans of your mail and e-mails them to you, and can also assist with sending or forwarding mail. Plans may also provide additional benefits such as discarding junk mail, shredding, and unlimited digital storage.
Since a virtual business address involves a commercial party collecting mail on your behalf, you’ll need to fill out and notarize a copy of Postal Form 1583 to use one.
Benefits of a virtual business address
A key benefit of a virtual business address is that it lends a more professional image to your company. Customers and clients may trust home-based companies less than those that are established in a commercial space.
Virtual business addresses provide additional convenience. Instead of maintaining a physical location and administrative staff, you can have a third-party servicer handle some aspects of your correspondence.
If you use your home address for your business address, you may run afoul of certain rules such as zoning regulations and homeowners association rules. The virtual address allows you to continue working from a home office without violating these restrictions, and can also provide certain liability protections as well.
Similar options
Renting a post office box allows you to set up a mailing address distinct from your home address. This creates a secure, affordable place to receive your business mail, and the U.S. Postal Service also has additional services to assist businesses. However, limited liability companies and corporations are required to have a physical address and cannot use a PO box as their business address.
Registered agents can serve as an intermediary that delivers legal documents and business mail to a business owner. Agents are required to maintain a physical address within the same state as the person with whom they do business.
Co-working spaces are typically leased on a month-to-month basis or accessible through a membership fee. In addition to providing an address for receiving mail, they offer amenities such as telephone answering services and conference rooms where you can meet with clients.
