Should you use a PO Box as your business address?

Summary

Are you in the process of setting up a Limited Liability Company (LLC), but you are not sure what to use as your address? First, let’s dig into what is considered a Business Address!

A business address is an address that is used to appoint your main place of business. Your small business is supposed to be operating from this address, but that might not always be the case. Business address options can be a physical address (your home address or commercial space) or a post office box. Which of these make sense for your business? Below is some additional information for each of these options.

Are you in the process of setting up a Limited Liability Company (LLC), but you are not sure what to use as your address? First, let’s dig into what is considered a Business Address!

A business address is an address that is used to appoint your main place of business. Your small business is supposed to be operating from this address, but that might not always be the case. Business address options can be a physical address (your home address or commercial space) or a post office box. Which of these make sense for your business? Below is some additional information for each of these options.

Home Address

This would be the easiest way to get a business started, and it comes with many conveniences. The benefit of no extra fees, ease of receiving mail/packages, and the amazing commute gained when working from home. You may not want your client to think that you are working out of your basement to process their financials, for instance, but to realize that you have a dedicated space to maintain confidentiality.

Commercial Space

If you have the financial capacity to make this decision, this will provide a real street address, protect your privacy, provide a professional space/image for meetings or work to be done, and allow for mail/package delivery.

There are options in this category that may allow for a step in without buying real estate immediately, such as:

Virtual mailbox services

Virtual mailbox services Private mailbox stores

Private mailbox stores Virtual office/business centers

Virtual office/business centers Coworking spaces

Coworking spaces Commercial offices

PO Box (Post office box)

If you have simple basic needs for a mailbox service, a PO box may be a smart and affordable option. A PO Box is always located within a physical post office. It can become challenging if you are receiving a high volume of mail or packages outside of US Post Office delivery.

Keep in mind having a physical address compared to a PO Box can impact other aspects of your business. You will be setting up a bank account, insurance, and you will be responsible for taxes (to name a few scenarios). Do your research, as typically you may need a physical address to complete these steps. Also, don’t forget to be thoughtful of the privacy and professional persona that your business address may present.

Should you use a PO Box as your business address?
Photo Credit: www.sbdc.duq.edu

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