Up-and-coming limited liability companies (LLCs) often have certain obstacles to overcome on their way to success. Smaller businesses need to be a little more resourceful and discerning with their time, money, and growth strategies.
Utilizing a virtual address can be a savvy and budget-conscious decision that offers small business owners freedom and flexibility. This is why a virtual address may be the best choice for your LLC.
Let’s review what a virtual address is and how to obtain one, giving you all the information you need to know to enhance your business presence.
What Is a Virtual Address?
Businesses of all types are required to have a physical address for their business registration, licenses, insurance, and legal documents. A virtual address is an address that a business is permitted to use, even if the address isn’t in any way officially affiliated with the LLC that uses the address. Essentially, it’s a mail-forwarding service that acts similarly to a PO box.
Virtual addresses allow business entities to send and receive mail through an agent service. Rather than having mail sent directly to your home or place of business, an agent receives your mail on your behalf and bridges the communication gap.
Your physical mail is received at the registered agent’s address, where the recipient provides mail scanning services. You’ll receive electronic copies of your mail that you can access from anywhere. Most virtual mail agents also provide shredding services to keep your information confidential after digitizing your mail.
With a few exceptions, you can use a virtual address similar to a mailing address. Many virtual address services won’t accept large packages or certain types of packages on your behalf. Each virtual mailbox service will have its own rules regarding the types of mail it can receive.
Why Might You Need a Virtual Address?
It isn’t always a wise use of resources to pay rent on a physical storefront or office space, especially as a new business. Some LLCs may exclusively maintain a virtual office out of a member’s home. If your home is your official business HQ, you probably don’t want to publicly list your personal address.
Your business address will always be accessible to the public. Disgruntled or curious customers may show up at your home unannounced. Scammers, spammers, and solicitors can also show up at your door or send you junk mail. A virtual address for your LLC will allow you to maintain your privacy.
If you travel or work remotely, a physical address can hold you back. A virtual address will allow you to work from anywhere by giving you virtual access to your business mail from anywhere in the world.
How To Get a Virtual Address for an LLC
Many business owners and entrepreneurs use virtual business address services. There are many virtual address providers to choose from.
The process is fairly simple: Find the provider that suits your needs, select an available address, file the correct form with the post office, and update your address on your business cards and documents.
1. Select a Virtual Address Service Provider and Plan
When selecting a virtual address service provider, it’s important to consider the plans they offer and the pricing for their services. Consider what you’ll get with your plan when you sign up for service with the provider, and make sure that what they provide is easily justifiable within your budget.
Virtual address service providers offer plans according to the size and needs of individual businesses. If you’re a new LLC, you’ll likely need a basic plan or package to suit your needs. If you believe you may outgrow your plan, most service providers will give you the option to upgrade as you grow.
Mosey allows you to integrate a virtual mailroom into the app and accepts mail to your Mosey virtual mailbox in all 50 states plus D.C. at no extra charge. View, assign, resolve, and download mail from one unified mailroom, making compliance that much easier.
2. Choose a Virtual Address That’s Most Convenient for Your Business
Virtual address service providers give businesses a choice of addresses that may suit their needs. Providers will offer them all over the United States, and some virtual address service providers offer international addresses.
Some businesses choose a virtual address in Delaware in order to form a Delaware corporation. Your business advisors and legal team will be able to help you explore the options that will work best for you.
3. File Form 1583 and a “Change of Address” With the USPS
It’s illegal for someone to receive another person’s mail without their express consent. The United States Postal Service Form 1583 is called Delivery of Mail Through Agent. This form certifies to the post office that you’re allowing someone else (or a registered agent service) to receive your mail on your behalf and handle it according to your wishes.
USPS requires LLCs to complete Form 1583, have it notarized, and file it before they can start receiving mail through an agent. This form waives your right to hold USPS liable if the recipient agent mishandles your mail in any way, which is why you must choose a virtual address provider you trust.
4. Update Your Address on Business Documents and Records
Opting to obtain a virtual address early can save you a lot of time. If you decide to use a virtual address at the beginning stages of forming your LLC and starting your business, you’ll have fewer documents to update. If you choose to switch to a virtual address later on, it’s important to be mindful of every document you’ll need to modify.
Leaving your home address or real street address on some documents may create conflicts with your business documents. Every document relating to your LLC should have your virtual address listed as the primary address. Don’t forget to update your information for your business bank account and your payroll company.
What Are the Benefits of Using a Virtual Address?
Many business owners choose to use a virtual address because their choice comes with a wealth of benefits. These benefits are especially useful for entrepreneurs and small business owners who want to make mindful decisions with their startup capital. Credibility, cost efficiency, privacy, and legal compliance are among the most significant benefits of going virtual.
Physical Locations Give Your Business Credibility
Even if your LLC can operate without a physical office, potential customers would still prefer to know that you have one. Lack of address can make your business seem untrustworthy or as though you’re attempting to conceal where your operation base is.
A virtual address solves that problem. Customers will have a valid mailing address that’s attached to a real person if they ever feel the need to vet the legitimacy of your business. Even if they discover that you’re using a virtual address, they will know that the address is registered to a real person who sends and receives mail through a virtual service provider.
More Cost Effective Than Leasing Commercial Space and Equipment
Some businesses need to have a physical location in order to serve their customers. If your limited liability company is service-based and facilitates the need for a workshop or retail business location, the need to lease a space is inevitable.
Some businesses simply don’t need a physical location. If you’re an exclusively online business, a traveling repairperson, or a mobile business (like a pet groomer or a food truck), your physical address isn’t an important part of your business. You can’t truly have a home base if you’re able to work from anywhere.
A virtual office address will allow you to save a substantial amount of overhead by substituting the need to lease space. Your virtual mailbox can always collect your postal mail, even when you’re on the move.
Keeps Your Home Address Private
Most business owners would be uncomfortable with strangers knowing where they live. Using a virtual address to keep your home address private can help prevent intrusive knocks on your door or unsolicited business-related visits.
Keeping your home address private can also reduce the load of junk mail you receive. Business owners often receive solicitations, offers, and promotions they never asked for. Mail handling companies find business addresses on the internet and stuff their mailboxes. A virtual address would prevent unwanted mail from arriving at your home.
Comply With Legal Restrictions Regarding Home Businesses
All businesses need to be properly registered and licensed, and having an official mailing address is an important part of that process. A virtual address allows you to comply with legal restrictions and requirements. Your business must have a physical street address, even if your LLC is a home-based business.
Mosey offers a wealth of compliance resources and services for LLCs in every state. Many LLC owners find that using a virtual address helps them maintain compliance without sacrificing privacy.
A Final Word on Virtual Addresses
Virtual addresses have the potential to be a near-perfect solution for startup founders, entrepreneurs, and small business owners who don’t have a need for a physical location or don’t yet have the budget to lease a commercial space. Having an accurate address listed on all of your business, legal, and tax documents is necessary for compliance, and a virtual address can make compliance easier.
Mosey works to simplify compliance for small businesses by automating many essential processes. We give small business owners the tools they need to be mindful of their overhead costs without sacrificing key compliance services that help their businesses remain in good standing.
Book a demo with us to learn more about automating with Mosey for your business needs.
