Starting a business involves paperwork, from sending and receiving invoices, official documents, tax correspondence, and signing contracts.
For some paperwork and business practices, you need specific addresses, begging the question: do you need a physical address or a mailing address?
To answer that you first need to know the difference between a physical address and a mailing address.
So, let’s find out.
What is a Physical Address?
A physical address describes your physical location; for example, your residential address is a physical address, and for most correspondence, also your mailing address.
While your physical address can be your mailing address, not all mailing addresses are physical.
How to get a physical address
Local government authorities assign new addresses; for example, the owner of a new property within city limits would contact the city government department in charge of assigning new addresses and submit the relevant paperwork. Once received, the department will arrange a site visit.
Physical address disadvantages
Home-based small businesses are excellent for reducing start-up costs; however, your residential address can project a lack of professionalism, affecting your client’s perceived trust.
Other disadvantages of using your physical address are:
- Security: Using your home address as your business address exposes it as public information, making it easily discoverable online and heightening the risk of theft and harm to you and your family.
- Privacy: Your clients and customers will know your home address if you use it for your business; using a separate address ensures you keep your personal information private.
- Legal issues: Depending on your business and location, registering your company at your home address can cause zoning law issues, resulting in fines and business closure.
What is a Mailing Address?
A mailing address is an address/location you can use to receive postal mail; for many businesses and solo entrepreneurs, this is their office or home address.
But, for entrepreneurs without an office or those who do not want to use their home address, a P.O. Box, which allows you to receive mail while keeping your location private, is an excellent option.
A PO Box, also known as a post office box, is a secure mailbox that acts as your official mailing address. It’s a safe choice as they are in a United States Post Office (USPO) and run by the U.S. government.
How to get a mailing address
You get a P.O. Box mailing address from your local United States Post Office or a shipping center.
Most allow you to reserve a P.O. Box online; however, you must visit the location to provide your I.D., pay the fees, and get the keys.
Mailing address disadvantages
While a P.O. Box provides flexible hours, enabling you to get your mail at a time that suits you, the 2 significant disadvantages are private carriers like UPS and FedEx cannot ship to them (only the United States Postal Service can deliver mail to P.O. boxes), And certain state governments do not recognize a P.O. Box as a business postal address.
What is The Difference?
A physical address is your home or physical business geographical location, while a mailing address is where you choose to receive your mail, such as a postal box or virtual business address.
Speaking of which, that’s another excellent option.
Virtual Address
A virtual address service (also known as a virtual mailbox, virtual business address, digital mailbox, or cloud-based mailbox) provides a permanent street address, allowing you to receive, access, track, and organize your physical mail and parcel shipments from any location with an internet connection.
Your virtual address provider scans your incoming mail/packages, uploads them to their app, and sends you an email notification. You then choose what action you want them to take, like open and scan, store, forward, shred, and some even deposit checks on your behalf.
Most virtual address services provide numerous address locations, so you can choose an address in any area that suits your business. Once you select your virtual address provider and address, you can receive mail like any other physical address.
How to get a virtual address
First, choose a V.A. provider that meets your business needs, like the mail you’ll receive (payments, personal, or packages) and budget.
After that, tick the boxes relevant to your needs on your provider’s platform.
Finally, you must complete and send U.S. Postal Form 1583 to authorize your virtual mail address provider to receive mail on your behalf.
Virtual address advantages
In addition to cost, using a virtual mailing address has a few disadvantages, so let’s shift our attention to the advantages.
A virtual mailbox suits digital nomads and businesses operating in several states by providing a secure, professional address (separate from a home address) that can receive mail from all carriers, including FedEx, USPS, and UPS.
A virtual mailbox address can also receive official documents, like tax correspondences, credit cards, and driver’s licenses.
Special Considerations when choosing a business address
Specific considerations exist when choosing the right mailing address for your business.
For example:
- Perhaps you’d like to run a home-based business and need a separate address to keep your personal information private and avoid unwanted calls or visits.
- Or you require an address that projects professionalism to create trust with your prospects and vendors.
- Maybe you work remotely, receive mail and parcels, and need a service that opens, scans, and forwards them upon request.
Legal reasons also come into play when choosing which type of address you’ll use for your business.
For example, some U.S. states require businesses to have a physical mailing address for regulatory requirements.
An LLC, for instance, must have a registered agent’s address on file with its Secretary of State’s office to receive official correspondence and legal documents, and that address must be physical and open during working hours.
Why is it important to have a business mailing address?
A trustworthy mailing address is essential for most businesses as it establishes professionalism and credibility. But they also need a secure & accessible mailing address they can rely on.
Virtual mailboxes, appropriate physical addresses, and business mailing addresses help give your business credibility and ensure you get all critical mail and official documentation.
What about a shipping address?
A shipping address can receive mail, parcels, and oversized packages.
Many of us know shipping addresses from ordering products online, where in the checkout, it requests your address.
Most physical addresses, including your home, are shipping and mailing addresses, as they can receive mail deliveries from the United States Postal Service and private carriers like UPS or Amazon.
The one exception is a P.O. box, as they can only receive mail from the USPS.
Conclusion
Knowing the differences between a physical address and a mailing address helps you decide which you`ll use for your business.
For many companies, these addresses are much of the same. But, for some, choosing the address that fulfills their needs is crucial.
FAQ
A physical address is your actual location, while a mailing address is where you receive mail, such as a P.O. box or virtual address.
You can use a P.O. Box for mail, but some state agencies and private carriers don’t accept it as an official business address.
A virtual address provides a real street address where your mail is received, scanned, forwarded, or stored, allowing you to manage mail remotely while maintaining privacy and professionalism.