Why You Need A Virtual Office for LLC Owners
Build strong business credit
with your EIN
Do you really want your home address to pop up when someone searches for your small business? It might not seem like a big deal, but your privacy and safety are important to consider. Presenting a professional image to your customers is a top priority too.
Using a virtual business address helps with those issues and more. In this article, we’ll cover how they work and how to get one.
How Does A Virtual Address for Businesses Work?
Small business owners with home-based operations get to skip the costs of renting a physical office location. When you’re just getting started this is a big money saver. It eliminates your commute, and some studies say it even makes you more productive.
With all the good, there are still some downsides to using your home address for your business mail. A virtual business address protects you from privacy concerns associated with posting your business info online because the registered agent address is what’s used.
Would you give your address to a stranger? No.
So why would you want your potential customers to have your home address? As a registered agent for your LLC, the address you use to create it is public information.
Keep in mind that your mailing address is also part of legal correspondence and official government documents you’ll receive as a registered agent.
Virtual addresses help you present a professional image too. When clients hit Google and see a residential address, they might make assumptions that aren’t true. Assumptions that question your company’s trustworthiness, credibility, and professionalism. Don’t risk your first impression.
A virtual business address supplies you with a real street address for your business. And when clients Google you or receive documents with your letterhead, they’ll see a business, not a house.
Well, if you can’t use a home mailing address, then what about getting a PO Box?
A virtual office address offers a few things that a PO Box can’t do:
- Receive postal mail and packages.
- Use the mailing address to open a business bank account.
- Use it as contact information as the registered agent for your LLC or corporation.
- PostScan mail to quickly shred, prescreen, and check for packages.
- It doesn’t need to be changed if you relocate.
If your business needs more than the basics, there are some virtual office services that offer more. Some provide a full office front. Complete with a receptionist, coworking space, meeting rooms, mail forwarding service, and phone service.
How a Virtual Address Helps Establish Your Business Credit
One of the main goals for new business owners is to establish business credit. Did you know a virtual business address could help with that? Most banks and financial institutions won’t accept a PO Box or residential address when you apply for a business bank account.
While this isn’t the case for all banks, you may run into a few snags when reviewing the requirements at banks you want to work with. This narrows your options.
Your business credit scores are a record of how responsible your business is with finances. It helps potential lenders determine how much risk is associated with lending money to your company.
Opening a business bank account is a key step to build business credit. It’s a way to keep your business and personal finances separate. And for LLCs, you’re actually required to operate from a business bank account. So depending on where you live, a virtual address is a must.
When applying for your first business credit card or business loan, lenders look at how you’ve managed your finances within your business account. They review your balances, incoming payments, and expenses to decide whether to approve or deny your application.
As the registered agent for your LLC, you’ll need to ensure your business has what it needs to be successful.
How Do I Create A Virtual Office For My Business?
Getting a virtual office address for your business is a simple process. With most virtual mailbox services, the process only takes a few minutes to complete.
The service you choose to go with should meet the needs of your business. If you need a conference room or a private office space, there are companies that offer that along with a virtual mailing address for an additional fee.
The steps to get this done might vary from business to business, but these are the basic ones you’ll have to follow.
- Choose a virtual business address provider. Then claim a virtual office space.
- Decide what your business needs and what’s in your budget. Select a service plan based on that.
- Complete a US Postal Form 1583 to authorize your virtual office to receive mail on your behalf.
- Visit the US Postal Service website to complete a change of address form.
- For LLC registration, you’ll need to apply for a Tax Identification Number (TIN) as the registered agent for your business.
- Use your new virtual address on your articles of organization, registered agent information, and other business documents that require a street address.
How Much Is A Virtual Address For LLCs?
Having a virtual office address is obviously less expensive than leasing a physical office space. That doesn’t mean it’s always affordable.
For new small business owners, the expense of a virtual office solution might be too much of a drain on the monthly budget until more money comes in.
The average cost of a virtual mailbox is anywhere from $9.95 to $35 a month. On the low end, this is cost-efficient. If you need more than just a virtual mailbox and opt for the extra features, that price gets much higher.
The option is always there to choose the lower-priced option first. You can always upgrade to include more with your virtual business address later.
In summary, using a virtual office provides you with a real street address. This is used to fulfill the information requirements to become a registered agent for your business.
It’s less expensive than a physical address and still helps you reach your goals of building business credit.
CreditStrong for Business is the only 0% interest business credit builder in the nation
