Starting a Small Business : Step 3 Getting a Business Address
Last week we looked at how to obtain your tax ID numbers and the importance of having them. This week we will look at step 3 of the Small Business Administrations checklist for starting a business getting a business address and why that is important.
Why is having a business address important?
Having a business address is vital for a couple of reasons.
- First, your business address is where all your mail from the IRS, other regulatory offices, and clients will come.
- Second, depending on the city you live in you may be required to have a commercially zoned business address to apply for a business license.
Should my business address be different than my personal address?
In most cases, yes.
- It adds legitimacy to your business.
- Having a separate business address allows you to make a clear distinction between your business and personal life.
- It can add additional security to your mail making sure that you or an authorized individual only have access to it.
- And the cost of having a business mailbox is deductible for tax purposes.
Do I have to rent office space to have a business address?
No, but it is also an option that you may want to pursue. Here is a list of some options for getting a business address.
USPS Post Office Box
- Least Expensive
- Clients may assume you are less professional
- Isn't usable as a business address for many governmental forms
- Won't accept mail that requires a signature
For more info check out USPS website here.
Private Mail Box Rental
- Can be used as a physical address for your business on governmental forms.
- Appears more professional to clients
- Notified when mail is delivered
- Will sign for mail and packages if needed
- More expensive
- Have to drive somewhere to pick up your mail
- If you move, you can't set up mail forwarding through USPS
For more information check out UPS' website here.
I believe this is the best options for most businesses just starting out. Most co-working spaces have tiered pricing based on your needs.
- If you intend on working from home, you can pay for a business address. But with the added benefit of being able to rent out conference rooms for client meetings as needed.
- Or you can pay to work in co-working space where you can come in and work when need but don't have a dedicated desk. You also have the above benefits.
- As your business grows, you may want to pay to have a private office or desk which you can also do at most co-working spaces.
The great thing about co-working spaces is that you can pay for what you need and as your business grows and your needs grow you can pay for extra amenities.
Here is a list of some co-working spaces.
These are two of the biggest co-working vendor with offices across the country.
You can also do google search in your area for co-working spaces. There may be better options in your local area which are less expensive then WeWork and Regus.
Is it worth the extra cost?
Yes, I do believe that paying for a business address is worth the benefits. It makes your business look more legitimate, and if you pay rent to work in a co-working space, it provides you the ability to network with other business professionals in your area.
Having a business address is vital to any business. It can provide legitimacy to the business and offer you a space other then your home to work. If you have any questions about getting your business set up let us know below, we would love to talk to you.