You just started a business, want to register your business in another state, or separate your create some privacy between your work and the public we are going to show you how to use a virtual office to make your business easier to manage, and reduce your paperwork and headache.
Virtual Office for LLC Overview
This guide is going to walk you through how to get started using a virtual address for an llc. This is important because it provides a professional apprearance and is compliant for an LLC registration in most states. The other main benefit of this is you can use this is that you can get a more prestigous address for your business, use a good address for your company business cards and company's letterhead, and finally it may attract potential customers to reach out because it provides more credibility to your services.
So here we go with the overview. And bookmark this page so that you can use your new business address for the customers and the public record as an address for llc paperwork.
Types of Virtual Offices
Make sure you understand the different types of virtual addresses and virtual offices so you dont make a mistake and get the wrong type for your business:
PO Box - A PO Box will not be adequate for an LLC except for pure mailing services. A PO Box is just a mail center. If you want to have an address to receive postal mail to this is a decent solution, but it will not act as an address for an LLC
Mailbox Rental - A Mailbox rental is at a UPS Store or a Mailbox store that lets you rent out a box and they sort mail for you into your cubby for your business mailing address. The benefit to this is that you can get more package types, but in general is similar to a PO Box. It could be useful for an online business that needs to accept packages, as a mail center but not for compliance purposes.
Virtual Mailbox - This is where you can get a physical address as well as a business mailing address. Your LLC virtual adress can be a mailbox rental that offers digital services, or it can be a virtual business address that only handles mail services. A physical virtual address is generally a premium over a mailbox store that will scan your mail.
Virtual Address - These range from a virtual mailroom with a real business address to a virtual office / coworking space like Regus or Wework
Virtual Office - An office space that rents individual offices to businesses but will also allows access to their offices without a dedicated space. This offers you the opportunity to have a business presence at a relatively low cost, shared with others.
Coworking Space -A business office, dedicated desk, roaming membership to a workspace that offers additional amenities and will offer mail distribution services
Can I use a virtual address for LLCs?
The first question you need to understand is if virtual business addresses qualifies as an address for your LLC. In general, there is a cut off from the types of virtual offices listed above that will be allowed for an LLC address.
PO Boxes and Mailbox Rentals should not be used for LLCs unless you are looking just for a delivery address.
Virtual Mailboxes can be used, but you have to ensure that the address is a physical business address, not a mailbox location.
Virtual addresses, virtual offices, and coworking spaces all work well for LLCs and should qualify for any state filings. A virtual address for LLC state filings is the best solution for most people.
The one thing to note is that with each tier of location, the price rises. So you need to find a good balance of cost, services, and space needs.
Thatch is the perfect service provider for an entirely virtual business. You can send mail online, get a virtual business address, virutal fax, virtual phone and sms all in one platform. You can even connect a team email address to keep your entire team communicating and keeping your business running.
How to Setup a Virtual Business Address
To setup virtual business addresses, you need to select one of the approved options above, and either select your preferred virtual office or coworking space, or sign up for Thatch for your virtual Address to handle your inbound mail scanning.
The price for a virtual address / coworking space ranges from $500 - $10,000+ per month depending on the plan, office, view, and size you choose. A virtual mailbox like thatch will range from about $40 - $100 per month and includes mail scanning, package forwarding, and auditability for your mail.
Any type you choose you will need to go online to signup for your preferred partner.
How to Register a Virtual Address for your LLC
Once you've picked your address / virtual address provider you can let your state know about this address. Most states require a registered agent on top of a physical business address.
A registered agent can be you, but you would need to be able to accept official mail, or court summons, or other legal documents. An outside registered agent will cost $50 - $200 per year depending on the agent service you pick.
You will file need to file with the state with your new business address, as well as your registered agent (either you or an outside agent).
Once you've made your filing you are all setup and registered with the new LLC address!
Using a home business address vs virtual business address
You are able to also use your home personal address for your business. There are not many benefits in using your home address as a business, and may actually be out of compliance with your city / county codes.
Using your home address as a business will open you up to a bunch of liability and unneeded stress. Its not recommended, but is possible. A virtual business address as your primary business and mailing address is the way to go.
Benefits of a Virtual Office for an LLC
Cost savings: A virtual mailbox gives you cost savings over any other type of virtual solution. Its the best way to manage your business from anywhere in the world.
Flexibility: You can work from anywhere and at any time, you just need an internet connection.
Professional image: A virtual business address can help you maintain a professional appearance, even if you are working from home or an exotic place in the world. You can use the virtual office's address as your business address and have a professional telephone phone service, which can make your company pop.
Access to additional services: Outbound mail, phone, sms, fax, email are services can help you save time and increase efficiency so you can focus on growing your business.
Downsides of a Virtual Office for an LLC
Lack of a physical presence: One of the drawbacks of a virtual business address is the lack of a real business address. This can make it difficult for clients to find you or for you to participate in face-to-face meetings if meetings at a physical office is important for your company.
Dependence on technology: A virtual office relies heavily on technology, you need to select a partner that has the best technology to make sure your business runs.
Limited interaction with other businesses: Working remotely doesn't provide the networking that you may need to grow your business.
Next Steps for Your Business
Finally, you learned everything you need to about virutal office for an llc business address. Learning the problems and solution is 80% of the work, you have gone farther than most people. Now you just need to close out this project. Now you know everything, it will be easy!
Common Questions: Setting up a Virtual Office for LLC Owners
Will a Virtual Business Address act as a Registered Agent?
No, a registered agent is required by the state as a legal address to receive mail for tax forms, legal documents, and other official business purposes. A registered agent service can be purchased through many companies or you can always just set yourself as the registered agent and use your home address or other location as a registered office address. Please note if you use a registered agent address may be different from your business address.
Do I need to live in the same state as my virtual business address?
No, not at all. You can live anywhere in the US or the world and have a virtual business address in the state you are conducting business. You can even be based on one state, be registered in that state, then file as a foreign entity in another state to start conducting business there as well. This is helpful for many contracts that require busines entities to be physically present in the state.
Will I get a Real Street Address for my LLC?
In most cases you will receive a virtual business address does have a physical address in a physical location that will be your new real street address. This will not work if you use a PO Box address or a private mailbox address. The state will want you to register your business with a physical address used for business purposes.
Is this the best solution for a home based business?
Yes, there are many reasons why you don't want to use your home address for your LLC. Your business registration paperwork is listed online for anyone to look you up with only your company name. A virtual business address is a good choice to separate yourself and your home address from anyone with an internet connection to look you up.
What other products and services does a virtual address service offer?
Typically, a virtual address service will collect start receiving mail on your behalf. But in addition to mail and packages, you will get services like mail scanning, mail forwarding, check deposit, guaranteed scanning time, and secure shredding.