Updated April 2nd, 2023
Congrats on making the decision to start a Limited Liability Company or LLC! This is one of the most common business structures for new and small businesses. It’s easy to set up and protects you personally from a business liability perspective. One of the primary requirements before you apply, is to obtain a valid physical business address. If you’re asking yourself whether to use your home address for an LLC, be sure to read this article first. Make sure you also review more tips and information on starting a business at home.
Can you use your Home Address to start an LLC?
Technically, yes. However, there are many risks with using your home address as your business address. Therefore, it is generally not recommended if you are serious about your business and plan to grow it now and in the future. Let’s get into more detail.
Who Should Use Home Address?
Again, while using your home address for your business poses several risks, which we will get into next, there are some businesses that still find this a satisfactory option for getting started. Here are the circumstances when it may make sense for you to use your home address.
- You are unsure if this is the right path for you and therefore, you are not ready to make any commitments. To be candid, if this is you, perhaps you need more time to figure out what you want. Perhaps you should wait to start a formal business LLC at all right now. Starting an LLC is a legal business structure that you are registering with the government. If you are unsure if this is the correct path for you, take the time to figure that out first.
- You are a sole proprietor with no employees. In other words, you are the only person that owns and works in your business. Examples of this type of business may be Bloggers, Freelancers, or Consultants. While using your home address may seem like the best option, be sure to review the risks below before making this final decision. And if you foresee hiring employees in the future, you may want to establish a business address from the start.
Understand the Risks
When you use your home address for starting an LLC, you are likely using it across all business aspects as your business address. That means, your home address may be published in directories, on your website, in emails, in marketing materials, and more. This puts you personally, your family, and your home at risk. Predators may come looking for personal information based on the home address. The main reason that you establish your business as an LLC is for personal liability protection. The LLC separates YOU from your business. While it is legal to use your home address for your LLC, there are still legal privacy risks.
Before earning a customer’s business, you must earn their trust. That means establishing yours as a credible business. Professional credibility comes from a variety of places. However, one of the very first things a potential customer or client may encounter with your business is your address. Using a home address just may jeopardize your business credibility. When potential customers see that it’s a residential address, they get the perception that you are small and/or amateur. The first impression is the one that matters most with potential customers! Therefore, you need to put your best foot forward and a professional business address is part of a successful first impression.
Using a Virtual Office Address for your LLC
A Virtual Office Address is a physical address that comes with the rental of a Virtual Office. These Virtual Addresses are ideal for starting an LLC and protecting your personal and home privacy. It’s important to note that when registering your business as an LLC, a Virtual Office Address is not a Registered Agent. However, many Virtual Office Providers, such as Starthub, provide Registered Agent services, where the addresses may be one in the same..
To find out more about the services (such as mail management and virtual receptionists) and benefits of a Virtual Office for LLCs, CLICK HERE!
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At Starthub, we offer a comprehensive virtual mailbox and address with every virtual package – and they start at just $29/month. Just click here to get started. You’ll receive a prestigious mailing address for your business, dedicated mail-handling services from a talented team, and an innovative digital platform to receive and direct your mail. Plus, personalized customer support. For more information on why Starthub is the best choice for your virtual mailbox, click here.
Setting Up Your New Business for Success
Here are some additional articles to review for guidance as you set up your business for success.