- What are the necessary steps to change a business?
- How do you change your business address?
- Should you switch to a virtual office address?
Q: How do you change your business address?
A: Changing your business address can be tricky. Having your business properly registered is important for tax purposes, meaning you can’t afford to mess it up. This article explains how to change your address so you avoid fines and unnecessary hassle.
Since COVID – 19 began, there has been a growing desire for people to switch to self-employment. According to Pew Research, entrepreneurship has become a more desirable option for those seeking employment beyond a traditional 9 to 5. Self-employment provides the opportunity to be able to manage responsibilities at your own expense, while also achieving a sense of a work-life balance.
As an entrepreneur, you have complete ownership over every aspect of your business. It’s no wonder many aren’t sure how to change their business address.
Switching hats is almost second nature to you from troubleshooting client or customer relationships, launching marketing and social media campaigns, to executing business goal objectives and increasing customer retention.
It’s important to make sure that you cross every “t” and dotted every “i” when it comes to your business. That means making sure forms are filled out, information is updated, and everything is sent to the proper authorities to avoid any legal or financial consequences.
One of the pieces of information that must be presented to the proper authorities is your business address.
What constitutes a business address? It is simply the mailing address where your business is conducted consistently.
The mailing address of your LLC is what is prominently used for corporate communications and other work-related correspondence between you and your pre-existing or potential clientele.
Having a business mailing address establishes a sense of professionalism between you and the world. It verifies and validates your business before anyone even assesses the services and products you may have to offer.
Let’s say you find yourself starting your LLC and you need to establish a business address. How do you do it?
In this article, I will share with you pertinent information about registering your LLC address, how to change your business address, and how to compare other options such as a virtual address.
- What steps should you take to register your LLC?
- How do you change your LLC’s address?
- Is a virtual office the right solution for your LLC?
How Do I Register My LLC’s Business Address?
When looking into how to change your business address, you need to look at the registration process and how it works. There are several reasons why it is important for these organizations to have such information on file:
- Bluntly put … it’s a law. While the stipulations within the law vary from state to state, the law requires all businesses have a legal address for official corespondances.
- How else will you receive mail? Certain information cannot be received online, and thus require in-person reception.
- Your business address is one of the many tools used to help verify your identity. Many subscriptions won’t grant you access to their product or service if you are not able to provide an address. Doing so allows them to verify that 1) you are not a robot and 2) you are a consistent resident of this space.
There are a couple challenges remote companies and entrepreneurs may face when registering their LLC. Here’s a short list of common pitfalls and how to avoid them:
Can I use a PO Box for my LLC?
Although it only costs a small fee to reserve one, a PO Box is not a viable business address for your LLC.
A PO Box can be used as an address to share with your customers and clients to retain your privacy and receive mail. The box itself is located at the post office or a mail store and secured with a unique lock and number.
They’re cheap and easy to set up, but unfortunately, they’re not considered a real physical address.
Sign up for a virtual office address.
What is a virtual office you may ask? Think of a full-service, prestigious business center located in the heart of your city (or wherever you need it to be). A virtual office is a real physical address that you can use as your primary business address, and to register your LLC… but you never have to actually go there.
In order to sign up for a virtual office plan, make sure that you:
- Choose a plan that fits your budget, in any city of your choosing.
- Create an account, follow the setup wizard, and checkout.
- BOOM! Start receiving your mail at a recognized business location. For an added level of convenience, have the mail forwarded straight to you wherever you want it to.
Renting a local coworking space?
Some freelancers and entrepreneurs have had success using the address of their coworking space as their business address, however…
We do not advise this.
If you simply don’t want to work from your home every day, and you’re sick of running your business from a noisy coffee shop, then using a virtual office plan equipped with a coworking space may be a better fit for you.
Understand that registering your LLC under a coworking space’s address alone, is a bit of a gamble. And not likely to be approved.
Luckily, if you need a workspace other than your home, know that a virtual office plan can provide you access to private office space, meeting rooms, and yes! Even coworking spaces. All while serving as your official business address.
This enables you to secure a recognized business address that you can actually use for your LLC, while giving you access to in-person workspaces.
You get the benefit of not feeling isolated from being at home too long while still being able to take advantage of remote work life. Coworking spaces provide flexibility and the opportunity to be surrounded by like-minded professionals.
It also doesn’t hurt that these spaces have been found to be more cost-effective. For the amenities, locations, network and cost, renting at a local coworking space provides more bang for your buck. If you are interested in renting a local coworking space, make sure that you:
- Choose a coworking location closest to your residence.
- Make sure they offer virtual office address services to use as your business address.
- Book a workspace that fits your needs.
- Show up to the location when you need to!
How Do I Change The Address Of My LLC?
Now that we understand how the registration works, we can get into the tangible steps of how to change your business address online.
Make sure that you notify the appropriate authorities about your change of business address. Those authorities include:
INTERNAL REVENUE SERVICE
In order to inform the IRS of your business address change, go to the IRS official site and make sure to complete the ‘Form 8822 – B – Change of Address’. While it is possible to complete this online, it is important to verify sending these forms through the mail.
SECRETARY OF STATE FOR YOUR STATE
It is very important to update your business address changes with your individual state because each state has its own way of updating those documents. It will also be your responsibility to contact your county to update your business license.
In terms of other state requirements, registered agents are required when starting an LLC to receive and pass along legal documents to the business owner. The agent must have an updated address to operate every day during business hours.
ANY FINANCIAL OR BUSINESS ACCOUNTS AND ITS CREDIT AGENCIES
This is imperative as it pertains to the relationships you have with your bank, lenders, vendors, and service providers.
Your invoices must have the most accurate address on file as a protective measure against identity fraud. This can also affect the validity of a business loan or business credit that was previously established.
Your taxes must be filed under the most current business address, regardless if your LLC did not make any money the year before.
If you are in a position to hire more staff and are looking for ways to offset those hiring costs, look into the Employee Retention Credit (also known as ERC).
This initiative provides an opportunity to make up the costs invested in your hired labor, which covers $7,000 per employee per quarter.
Remember to notify licensing, insurance, state agencies, and the USPS
Once the legalities are taken care of, it is important to notify any vendors or supplies of your new address.
Update your customers through corresponding social media channels and business websites.
It’s very imperative that these updates are handled as soon as possible. If not, you may be sent fines, penalties, or even have your LLC dismantled.
Should I Switch Over To A Virtual Office Address?
Even though the process of changing that business address seems simple, it can be a hassle for entrepreneurs who like to move around. Why limit yourself to a business address as well as the legal hassle of it all when you have other options?
While PO boxes have been the most commonly used for a period of time, most people are straying away from the concept of physically going to them to get their mail. However, thanks to modern technology and the constant evolution of digitization, virtual offices are an option as well!
With a virtual office, you truly have the best of both worlds: a physical presence that surpasses one singular location while being accessible from anywhere on the planet. Utilizing a virtual address service also provides security for your correspondence.
Still not convinced? Here are a few more benefits that come with a virtual business address:
- Your business will embody a sense of professionalism that you may not get if you used a residential address.
- You can access your mail and corresponding documents on the go. No need for additional software or technological materials. All you need is a reliable internet connection.
- Your virtual office becomes a one-stop-shop. Imagine the convenience of your customers, financial records, and various materials coming to one central location.
So ask yourself, do you travel a lot without hassle? Do you want your private and business addresses to be separate for security purposes?
If you answered yes, having a virtual business address may be the best option for you.
Conclusion
Thinking about registering your business under a virtual business address, but not sure where to start?
A virtual office from Alliance Virtual Offices is the perfect solution. Why hassle with PO boxes and shared mailing addresses when you can switch to a virtual office address?
We provide flexibility, convenient and affordable options without sacrificing the safety and privacy of your business.
By choosing Alliance Virtual Offices, we help you take on the tasks necessary to increase customer retention, professionalism and increase your overall business growth.
As we continue to discover new ways of living and operating day to day within the digital world, more people are choosing to utilize virtual office addresses to help create a sense of simplicity when navigating their LLC. Doing so provides freedom for today’s digital nomad.
What’s stopping you from taking that leap of faith as well?
