Home Address vs. Virtual Business Address: Which is Better?

There are many challenges that come with starting a small business on your own and from scratch. Chances are that there isn’t a huge capital input and, as such, many solopreneurs start their businesses in their homes around their kitchen tables. This means that they don’t have an actual business office due to money constraints.

This often means that many of these businesses register their company address as their home address, which makes sense, given that it takes no additional work and incurs no cost. Seeing as 60% of all new service-related businesses are started at home, this comes as no surprise.

Disadvantages of Home Address

Although the benefits may sound appealing, there are some issues and downsides when it comes to registering your office at your home address, and these are mainly legal problems. Some of the problems that can be incurred when registering your business from your home include:


  1. Lease and HOA Rules
  2. Unfortunately, some home addresses simply cannot be registered as a business address. This is particularly true for apartment, condo and flat complexes, which are likely to restrict the registering of businesses in residents’ homes.


  3. Zoning Restrictions
  4. In some cities, municipalities will have zoning restriction laws that prohibit homeowners from doing any commercial work within their properties. In some cases, only some types of businesses are regulated by these zoning restrictions.


  5. Privacy Problems
  6. When you register your business address from your home then chances are that your personal and professional lives are going to mix. This means that contracts and other business documents will come to your home, and your customers may even pitch up on your doorstep – so registering your business at home can lead to many privacy issues.


Advantages of Virtual Business Address

One of the best alternatives to having a home business address is registering your address under a “virtual office”. The services that comes with virtual offices often include mail handling, receptionist services, and a listing in the directory. Some virtual offices also provide office space and conference rooms when they are needed.

There are some tangible advantages to your business when you register a virtual office address instead of one at your home. Some of these advantages include:


  1. Creating Trust and Business Presence
  2. Having a business address adds more legitimacy to your company, and in turn is more likely to encourage clients and partners to trust you. Having a business address is simply more professional, and it will make your business look more enticing to current and prospective clients.


  3. Meeting Point
  4. Having a virtual business address gives you more privacy in your own home and provides a place for all your mail to arrive and a space for meeting your clients and partners. This allows you to separate your personal and professional lives and also gives your business a more professional look.