LLC or a limited liability company is a legal entity that is formed to operate and own a business. LLCs are recommended for small businesses as they offer similar limited liability as a corporation, but are easier and cheaper to form.
In simpler and easier words, an LLC is a type of business structure in which the owner is not personally liable for any of the company’s debts and liabilities. LLC is a hybrid structure between a corporation and a sole proprietorship.
Why Do You Need an LLC?
- Most of the time it is the requirement of the state. Many countries require you to register your business. If you have one or two partners and the business is small or home run, then the most feasible structure for your business is an LLC. To be a corporation you need to meet a certain criterion that is not possible for a small business.
- If you have co-ownership or employees working for you then LLC protects you from any liability for their actions.
- LLC gives a structure to operate your business, make decisions, divide profits and losses among partners, and handle departing partners.
- LLC gives you taxation options as well, including a complete procedure your company needs to follow to file taxes.
Virtual Address for LLC:
A virtual address is a real street address at a distinguished office building or at a mail center, where you choose to receive your mail and packages. This address can serve as your official business address for legal and financial activities about your business.
To get an LLC registration, you need a street address. You cannot get LLC on a PO box. You can use your home address for registration but it is advised otherwise. In case your LLC has to face any legal suit, your privacy will be invaded because of your home address. For protection from personal liability in such cases, the recommended approach is to avoid using your home address.
The most viable option left, especially for small businesses, is to use a virtual address for legal activities. A virtual address fulfills the requirements and keeps your personal life private.
Another very important factor in getting your business registered is to get a registered agent. A registered agent is a person who will file your company with the pertaining department of the state. It can be an individual or a company that will be officially responsible for receiving legal correspondence with the state department, like renewal notices or subpoenas, etc.
A virtual office or address makes it possible for you to get both the agent and the registration.
Are There any Other Services Offered with the Virtual Address?
Yes! There are many other services provided with the business address. These services come in packages or suites. You not only get a street address at a prestigious location but will also be given services like front desk services, where you can receive mail or other deliveries. You will also get access to serviced, up-class meeting rooms.
These services uplift the standard and impression of your business without having to spend tons of money for maintaining a high-class office. Such a setup gives a strong impression of your business to prospects. An office address in a high-end area increases your reliability and instills confidence in people interacting with you.
Some other Benefits of Virtual Address for an LLC:
For a small business recently started, there are other benefits of having a virtual address as well.
You are right if you want to keep your business and personal life separate. We advise the same. Once you use your home address as your business address for LLC, you will be using it for other business activities as well. It will be listed as your contact address on web listings, directories, printed marketing material, webmail, social media, website, etc.
Do you want to put yourself, your family, and your home at risk by doing so? Probably not, and rightly so. A virtual address builds a barrier between both aspects of your life and keeps them at bay. It maintains your privacy and prevents you from mixing company liability with personal liability.
When you are starting a new budget or running a small one, the cost is of the utmost importance. You have to cut the price at every corner to make it work. At this time, if you want an office building with all the facilities, it will be an unnecessary burden on your budget. A virtual address for LLC gives you an easy way out. It gives you all the services and an office address at a reputable location without having to pay the hefty cost.
Future Growth and Expansion:
Every business owner dreams of expanding its wings to different horizons. When you are planning to penetrate the new market in a different city or a country, you will need a local street address for legal and operational reasons. A virtual address is a perfect solution for that. No need to hire a large number of employees to run your business in a foreign area. You can do it all virtually.
The first impression is the last, especially in the business world. The first impression of your business is very important, particularly for the new clients. People make the first impression in the first 7 seconds when they meet in person, and 50 milliseconds when they are online. Now you see how important it is to make a good first impression in front of people searching online.
One of the first things they will come across is your business address. It is very important that your address leaves an impact on them and gives them confidence. A virtual address of a reputable or renowned location gives prospective clients confidence in your company. It makes your business look reliable and credible enough to work with.