Every business needs an address, but what happens when two separate businesses register at the same address?
Are you an entrepreneur that plans on opening several businesses? Registering them all at the same address just makes sense. Perhaps you've invested in enough office space to cater to several enterprises. For the sake of organization, it's better to have all your businesses together in one place. It would be much harder to keep on top of multiple business addresses.
But are there any repercussions of having more than one business registered to the same address? We'll answer this question, and we'll also look at potential problems associated with registering multiple businesses to one address.
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What Is A Business Address?
Your business address should detail where your company primarily conducts work. On a basic level, having an address boosts your professional image. The more information you provide about your business, the more trustworthy you become to your target clientele. It also provides a meeting place for customers, as well as an address for customers to contact.
In some instances, an address is also required for your business to be lawful. If you start a corporation or a limited liability company (LLC) you need an address to legally register your business for trading in the U.S.
However, registering your home address for your LLC company does pose some risks. Making where you live public may not be the best idea. This could cause your customers to invade your privacy. It could also lead to you getting an overwhelming amount of spam delivered to your family home.
How Many Companies Can Share the Same Business Address?
There is no limit on how many separate businesses can share the same business address. It is very common for self-employed sole traders to register multiple companies at the same address. As long as your businesses are separate legal entities, you can make a single office home to all your enterprises.
Upsides of multiple businesses being registered at the same address
- Keeps things organized – If you manage several businesses, it would be best to select a single address for organizational purposes. This way, all mail, phone calls, and general correspondence are linked to this single address.
- You can register multiple businesses on Google My Business -You can have more than one Google My Business profile linked to the same address. This can be done as long as each business has been legally registered. This means potential customers can easily search for the whereabouts of each individual business.
- Temporary positions can use the same address – If you're a temporary teacher or hold another position for a limited time, you'll have to register as an LLC. In this instance, you can use the same address as the management company to register.
Downsides of separate businesses being registered to the same address
- High level of calls and mail – While it may keep things organized, having one office for multiple businesses can be overwhelming. This is especially true if you're using your residential address as a business address.
- Giving away your home address – If you use your residential address as your business address, you're publicizing your private life. For some business models, it would be much better to keep your home life and your business life separate.
Is A Registered Agent Address The Same As A Business Address?
No, there are several differences between a registered agent address and a business address.
As we've already established, a business address is where you primarily operate your business from. It is the address where customers can reach you. It's possible to have multiple business addresses.
A business address can also be used for the following:
- To receive invoices, bills, and payments.
- To open a business bank account.
- To set up partnerships with vendors and suppliers.
- To fill out permits, legal contracts, and licenses.
A registered agent address, on the other hand, is where you'll receive more important correspondence. For example, if the secretary of state needs to contact you, they'll reach you through your registered agent address. If you're involved in any legal action or lawsuit, correspondence will be conducted through your registered agent address.
All corporations and limited liability companies (LLCs) need to have a designated registered agent to deal with this type of communication.
It is sometimes possible to make your registered agent address your business listing address. However, some government agencies (such as the IRS) may require you to have separate addresses. For this reason, virtual offices are worth considering.
A registered agent address is sometimes referred to as a registered office address.
Alternative Solution: Using a Virtual Office Address
If you don't like the idea of having multiple companies registered at the same address, there are alternative solutions. For example, you can create individual virtual offices for each business. Virtual office space provides you with facilities to comfortably operate your business from home. It also grants you a professional virtual business address.
A virtual office can provide you with a receptionist, mail-handling services, and a host of other benefits, including:
- A professional, city-center address
- A business phone number
- Virtual meeting rooms
- Potential access to physical meeting rooms when necessary
The downsides of having a virtual office space include ongoing costs, which could be damaging to a new business.
Frequently Asked Questions
Does a virtual office address count as a legal address?
Owning a virtual office address is much like having a legal address for a business, except you don't actually own the office. They've grown in popularity recently amongst those who start businesses from their homes.
How much does a virtual office address cost?
On average, a virtual office address will cost you $50 to $100 per month. This depends entirely on where you're based. Buying a virtual office address in the business center of a major city will cost a lot.