What is a Business Address?

Business Address

A business address is considered as the official location of a company. A business address indicates where your business is operating from. Usually, a business address is used for communicating with the wholesalers, as well as the customers. This type of address is required in all types of business operations.

Importance Of Business Address

Many startup companies use their home address or a PO Box as a business address to save money. But not having a proper business address might create privacy problems and it won’t give a professional look for the startup company. On the other hand, there are lots of benefits to having a real business address. They are –

1. A real business address will create a professional corporate image for your company

2. You will require a business address to open a business bank account or merchant account

3. Having a proper business address means your business is stable, established, and locally invested in the community.

4. You will require a business address if you want to register a domain name for your business

5. A proper business address is required to open accounts with the suppliers and vendors

6. A business address is required to receive statements, invoices, payments, and bills

7. If you want to file legal contracts, licenses, and permits on behalf of your business then you will need a business account

8. A proper business address is required to communicate with the potential customers

9. You will require a proper business address if you want to list your business on Google Places, Bing Places, Yelp, Yellow Pages, etc.

Business Address Options

When it comes to a business address, you have three options – 

1. Home address

2. Postal Office Boxes (PO Boxes)

3. Commercial Business Address

Home Address

This is the easiest way to get a business address and it is completely free. You don’t have to pay any extra money to use your home address for the business. You can easily check for mail or receive packages and save commuting-related expenses. There are many business owners especially startup owners who use their home address as the business address. But there are few problems that you might have to face if you use your home address as the business address. They are – 

1. Banks and merchant services won’t accept a residential address as a business address for the LLC or Corporation

2. There are specific physical address requirements available to open a business bank account or merchant account

3. A home address is not professional for a business and you will face a problem when adding your home address as a business address on Google Maps and Google Street views

4. Using a home address as a business address will create privacy problem as customers and vendors will come visiting your house

5. Depending on the business law of your state you might not able to run your business out of your home/apartment/condo

If you are a consultant or a freelance service provider then you can use your home address. But if you own a business that involves selling goods or items then a home address is not the best option to use as a business address.

PO Box

This is another option for you to use as a business address instead of a home address. You can use Postal Office Box through your local post office as a business address. PO Boxes are always located within the physical post office and they offer the same basic mailing functions just like the virtual mailbox. It’s easy to get a PO Box but they have many restrictions and disadvantages when you use them as a business address. They are – 

1. In many states, you have to use a physical street address to register your LLC or Corporation and a PO box is not accepted

2. Via PO Box you won’t be able to receive any mail or packages from third-party couriers like UPS, FedEx, etc. You can only receive mail from the US Postal Service

3. Banks and merchant services won’t accept PO Box as your principal place of a business address. It means you won’t be able to open a business account using PO Box.

4. There are many government applications and forms where PO Box is not allowed as the registered address

5. Having a PO Box means you have to periodically visit the post office to check if you received any new mail. This is very time consuming and you might miss important deadlines

6. Having a PO Box as the business address won’t provide a professional look that your business needs to look credible to your potential customers

Commercial Business Address

For a business, a commercial business address is the best option. Because a commercial business address has lots of advantages. That includes – 

1. Give a real street address

2. A business will have a professional image

3. Better privacy

4. Receives mail and packages from all couriers

5. Use the address to register for LLCs and Corporations

6. Accepted by banks and merchant services

A commercial business address is the real street address that you can use for all types of purposes. Moreover, having a commercial business address will build more trust with your customers and more credibility with your startup business. When your customers search for your business online, it will show a real office or storefront. With all these benefits; the only problem of a commercial business address is the price. Traditionally, getting a commercial business address is very difficult because you have to sign a long 1-3 year lease to rent a space. So if you have a startup business then getting a commercial business address might not be easy for you.

Which Type Of Business Address Is Appropriate?

If you have a startup business and running low on investment then a home address or PO Box will work for a while. At least you can complete the initial works of a startup company with a home address or PO Box. However, if you are seriously considering improving your business and care about a professional image and privacy then you should move to a commercial business address. A commercial business address will attract more customers and build their trust in your business. Moreover, in the future, if you want to register your LLC or Corporation then a commercial business address is a must for your business.

Last Updated on April 18, 2021 by Musa D

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