Many small business owners operate from their private residence, and for reasons of privacy and safety, they prefer to keep their address confidential and not list it as the physical address of their business.
Perhaps you might feel you don't need a physical address because you don't plan on holding in-person meetings in your residence, or you may conduct your business strictly online or over the phone, depending on what services your business provides.
Some business owners in this position decide to use a post office (P.O.) box address at their local post office as a physical address because it provides an address for sending and receiving physical mail without divulging private information.
There are, however, compelling reasons for a physical business address, and if you are currently one of many home-based business owners or are thinking of starting a business from home, you should consider obtaining a physical address.
Why have a separate physical address for your business?
There are several reasons to get a physical address that is a separate business address from your home address.
- A physical address lends credibility to your business
- A physical business address may be required by law
- A physical business address avoids shipping limitations
Do I need a physical location for my business?
Many small business owners manage to successfully run their businesses solely from their own private residences. Although they may be able to make it work, there are reasons why you might need a physical space for your business.
- Meetings with clients. You don't always want to have clients come to your home, and while there are times when meeting up with your customers for coffee or a quick bite is appropriate, repeated and extended client meetings require a dedicated space for business operations. Having a physical location also helps bolster your credibility and professional image.
- Work/life balance. Small business owners struggle enough as it is with separating their professional and personal lives. Running a small business requires a great deal of work, and burnout is always a concern, so if you are unable to set firm boundaries for yourself when it comes to clocking out at home and getting some much-needed rest, a separate workspace may help preserve your downtime.
- Visibility. For many small businesses just getting started, a certain level of exposure and visibility can provide an added boost to your customer base. Finding your business through the internet may be sufficient, but having a physical address location out in the world can grow your business as well.
- Legal Requirements. According to Kelly Berry, a small business consultant for Learn Start Grow LLC, a physical address is required for your small business if you are using any email tools. "These tools require physical mailing addresses to meet the CAN-SPAM Act and other Spam laws," Berry says.
How to get a physical address for your business
State statutes provide the way in which the LLC in that particular state is created, registered, and dissolved.
The statutes usually also indicate whether or not the LLC is required to include articles of organization, an LLC operating agreement, or instead allow certain default provisions provided by statute to determine the proper setup.
How to create an LLC
There are several viable options for obtaining real street addresses for your small business. These do require payment, although all of them are more financially feasible than renting physical office space. You can decide which option best fits your own small business needs.
- Coworking space
- Mailbox services
- USPS street addressing
- Virtual mailbox
What is a virtual business address?
A virtual business address is a real street address assigned to your business so that you do not have to receive mail at your home address or in a P.O. box. While you can pay for just a physical address to receive mail and send mail, virtual business addresses also often offer in-person receptionist services to field any walk-ins as well as meeting spaces.
Virtual business addresses are particularly convenient for any limited liability company or other corporations, as it is not legal to use a P.O. box address as a physical address on your business license. You must have a legally valid address, and for many small business owners, having their private residence registered on these legal and government documents is not ideal so they opt for a virtual address.
Obtaining a physical address for your business separate from your residential address signals professionalism and can also come with additional services that can help you grow your customer base and centralize your operations. Many small businesses operate from their owner's private residence, but there are also options for obtaining a separate physical address for business cards, mailing, meetings, and LLC paperwork.
