You must include your LLC’s address when filing your business formation paperwork. People who work from home are often unsure if their home address can serve this purpose. The answer is yes! But before you list your home address, please consider the following considerations:
Downsides to Listing Your Home Address in LLC Public Records
Many people starting a new business try to avoid extra overheads by locating their businesses at home. And such a move makes sense as you won’t have many financial challenges. Even so, using your home address can result in other concerns:
a. Lack of Privacy
When you list your home address as your LLC address, this address becomes available on public records. That means anyone who needs to find your business will automatically have access to your home address. You will have government officials stopping by to deliver service of process and mail companies delivering tax notices and compliance documents. Do you want to deal with this as you run your business?
b. Breaching Zoning Rules
If you live in an area with strict zoning regulations, you may not have the right to run a business from your home. Thus, you would face legal challenges if you were to list your home address as the LLC address. You may want to review the zoning rules in your area. And if your neighborhood has an HOA, reviewing its policies can help you decide if this is a good move.
c. Reduced Professionalism
You can run a successful company from your garage – many people have done so. Even so, the home address might not feel professional to some clients and investors. And this can rob you of increasing your market share, stalling your business growth
d. Piercing the Corporate Veil
Forming an LLC allows you to separate your business from yourself. The law thus recognizes you are separate entities and treats you as such. However, the corporate veil has its limits. It only exists when the separation between the entities is apparent. When you run your business from home, you may charge the business for personal expenses and vice versa. In such a case, the business can get sued, and the court may use your personal assets to pay the difference.
The Alternative to a Home Address
We’ve covered that using a home address robs you of privacy and can result in legal and financial challenges. You can also run into difficulties with zoning and HOA regulations that bar business activities in residential areas. So, what other options are available?
a. Renting a Virtual Mailbox
Instead of providing business partners and clients with your home address, you can use this instead. You can get your mail delivered via mail or courier service, creating a sense of professionalism. And you can access the mail at any time from anywhere as it exists in the virtual realm. Passportology offers a virtual mailbox address, and you can choose one that best suits your needs.
b. Using a registered agent service
When you form your LLC, you must elect someone or a company to receive your official correspondence. You can hire a registered agent service as they ensure:
- You can enjoy privacy by not listing your home address in public records,
- You can receive service of process confidentially, and
- You can leave your home without worrying you will not receive your mail – registered agent services are available during regular business hours.
Passportology offers a registered agent service with these and more perks. And best of all – you can switch to our services for free!