Starting a Small Business : Step 3 Getting a Business Address

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

  • Pros
    • Least Expensive
  • Cons
    • 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

  • Pros
    • 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
  • Cons
    • 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.

Co-working Spaces

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.

Choosing A Business Entity

Choosing A Business Entity

Starting a small business : Step 2 Obtain tax ID numbers

Starting a small business : Step 2 Obtain tax ID numbers