10/4/2024

Can You Start an LLC with a Virtual Business Address?

Yes, you can start an LLC with a virtual business address. In fact, many new entrepreneurs use virtual office addresses to start their businesses thanks to all the benefits of a virtual office compared to a traditional office. 

Keep reading to learn more about how a virtual office can be a helpful tool in starting your own business. 

What Is a Virtual Address for LLCs?

A virtual address for LLCs is the business address you put on all your business branding and paperwork, including the registration papers. This address is managed by a provider such as Davinci, so it’s a secure location. 

Can You Use a Virtual Address for an LLC?

A virtual address can be used to register for an LLC because it’s a physical building to which mail can be sent—even if you don’t have a physical space within the building. You can’t use a P.O. box to start an LLC because the government requires someone to receive the mail due to sensitive information. 

As a virtual office provider, Davinci owns an office building and rents various virtual addresses to entrepreneurs. We will receive mail that comes to that building and forward it to our clients. This is why a Davinci virtual address can be used for LLCs. 

Can You Start an LLC with Your Home Address?

Yes, technically you can start an LLC with your home address—but you shouldn’t, for many reasons

One of the most important reasons is privacy. When you register for an LLC, the business address goes public. This means that anyone can look up your address and know where you live. This can lead to:

- Stolen identity 

- Strangers showing up at your home

- Inundation of junk mail

Other reasons not to use your home address for creating an LLC include:

Professionalism: Using a residential address for your business can reflect poorly on your business. Using a commercial address makes you appear as an established business even if your business is new.

Rules: Depending on where you live, your HOA may not allow you to use your home address as your business address because businesses are not allowed in the neighborhood. 

Pros and Cons of Virtual Offices for LLCs

Here are the pros and cons of using a virtual address for your LLC.

Pros

Cons

Cost-effective

Lack of physical space

Extra amenities

Lack of ownership

Security

Sharing rented spaces with other businesses

Flexible agreement

Paying to access work/meeting spaces

Professional image 

 

Work or meeting space availability 

 

Privacy

 

Pros

Cost-Effective

A virtual office address saves entrepreneurs money compared to the costs of owning a physical office space, which includes extra fees such as maintenance, utilities, and other overhead costs. 

Extra Amenities

Many virtual office services come with additional amenities. Davinci offers extra services such as lobby directory listing and greeter, rentable coworking and meeting spaces, and even catering.

Security

A virtual office address is more secure for sensitive mail. Your home’s mailbox is often unmonitored—meaning anyone can access it. A virtual office has specific staff to monitor your mailbox and forward relevant mail to you.

Flexible Agreements

Physical offices tend to have restrictive agreements ranging from six months to a full year—which is too limiting for entrepreneurs trying to develop their business. Davinci offers monthly agreements for their virtual business addresses. 

Professional Image 

We’ve already discussed that a commercial address looks more professional than a residential one. First impressions are essential when working with potential clients and investors. 

Work or Meeting Space Availability 

Many virtual office providers offer rentable working or meeting spaces if you don’t want to work at home or a coffee shop. Davinci offers rentals by the hour or day, depending on your needs. 

Privacy

Privacy is crucial, whether your business deals with sensitive information or not. Using a virtual address protects your personal information.

Cons

Lack of Physical Space

Due to its being a virtual address, there is technically no physical space to work in unless you rent a space. 

Lack of Ownership

You rent a virtual address; you don’t own it. The lack of ownership may be an issue for some entrepreneurs who want to own their address. 

Sharing Rented Spaces with Other Businesses

Due to the lack of a dedicated physical space to work in, if you need a working space, you may have to share it with other businesses.

Pay to Access Work/Meeting Spaces

Having to pay to use working or meeting space could be out of budget for some entrepreneurs. They might prefer to just own a space they can work in.

How to Set Up an LLC with a Virtual Business Address

Creating and registering an LLC with a virtual business address is easy with Davinci. Using our incorporation services, registering an LLC can be done in five easy steps:

1. Choose your business name: Your business name must be unique (you can check your state’s Secretary of State website) and include LLC in the name. 

2. Select where you’re registering your LLC: You don’t necessarily need to register in the state you’re in, meaning your virtual business could be in a different state. Read our article to learn more about registering an LLC in a different state.

3. Choose a registered agent: A registered agent is the person who accepts all the mail and paperwork for your company. Having a registered agent allows you to use a virtual business address, unlike an unmanned P.O. box. 

4. File paperwork and pay fees: Once you’ve filled out all the proper paperwork, you must file it and pay any corresponding fees. 

5. Keep paperwork up to date: Once the LLC is created, your work isn't done. It must be updated annually. Luckily, this service is included with Davinci’s incorporation services. 

Start an LLC with Davinci

We can offer you the prestige of a professional commercial address without all the extra fees. Additionally, you can feel reassured your LLC paperwork is done correctly the first time with our incorporation services.

Browse our available virtual addresses now

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