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3 Common Mistakes Entrepreneurs Make when Registering their LLCs

Registering your LLC is a major step. Start the process right by avoiding the common mistakes that entrepreneurs make when they register their business:

Mistake #1: Using Home Address to Register a Business

Using your home address to register your business is a big mistake. In most states, when you register your business with the Secretary of State, your information becomes a public record. The data will be listed on your state’s website if you use your home address as your business address.

Many starting entrepreneurs may default to their home address as a business address for convenience. But this is a huge security risk because a disgruntled customer could end up knocking on your door—an unsafe scenario for you, your family, and your business.

Mistake #2: Opening a P.O. Box for Business Use

Do not get a P.O. Box to use as your business address. While using a P.O. Box address is commonplace and can work in many states, some states do not allow LLC registration using a PO Box.

Here are other reasons why not to use a P.O. Box as your business address:

  • The IRS may not accept it - When you obtain your Employer Identification Number (EIN), the IRS needs a physical address to send your mail and other necessary correspondence. Generally, the IRS only accepts P.O. Boxes if the USPS does not deliver mail to your home.

  • It doesn’t look credible - Keeping up a professional business reputation is essential. A P.O. Box address does not lend your business credibility. Your customers or clients will think you could be a fly-by-night operation that will run off with their money.

Mistake #3: Spending Cash on Office Rent

Unless you need a physical space to display products or entertain customers, renting an office space for your new business is a big mistake. When you’re just starting out, an office lease may not be a necessary expense, especially if you need it only to have a business address for your LLC registration.

You also have to consider location and reputation when renting a physical space. A store or office with a nice address that will bring your business prestige is definitely in the pricey range.

Aside from the rent, having a physical space also involves more expenses like utilities, security fees, parking space fees, deposits, and renovations.

Use A Virtual Mailbox Real Street Address for Your Business

Many states accept virtual mailbox addresses for business registration. A virtual mailbox with a real street address is one way to avoid the common LLC registration mistakes above. It is a cost-effective and more secure approach that many new business owners should consider.

Can you use a virtual mailbox address for LLC registration? Yes, but not in all states.

Please keep in mind that every state has different regulations and protocols. Please verify with your state’s Secretary of State or local Small Business Administration (SBA) office.

How does a virtual mailbox solve the problems caused by the mistakes above? Read on:

1. It is Safer to Use a Virtual Mailbox Than Your Home Address

Using a virtual mailbox address for your business instead of your home address adds a layer of protection to your home and keeps you safe from unwelcome client visits. Your business correspondence will also be sent to a secure and staffed location, helping you avoid potential mail theft (and, consequently, identity theft).

On top of address anonymity, a virtual mailbox address also keeps your business correspondence and essential packages safe in a staffed location. It protects you and your business from mail theft and porch piracy.

2. It’s a More Professional Address than a P.O. Box

On top of being used for LLC registration, banks, credit card companies, and other government institutions also allow the use of a virtual mailbox address. This makes it a much better alternative than a P.O. Box.

A virtual mailbox address can lend your business credibility, especially if you choose a commercial area or CBD location. It allows premier addresses to be available to small businesses. Using an address like that can help boost your company profile.

3. Save on Rent, Set Up a Virtual Office

Combine a virtual mailbox address with a virtual phone to

for your business. For a fraction of the cost of an office lease, you can have a legitimate business address and a phone number through which potential clients and customers can reach you.

4. Postal Mail Remote Access is a Business Essential

A virtual mailbox does more than provide you with a business address. Its core service – managing postal mail and packages remotely – is also essential for your business. It’s a digital platform allowing you access to your postal mail via phone or laptop — it keeps you on top of your business anytime and anywhere.

A virtual mailbox operator can receive your postal mail and packages, open and scan mail to send digital copies you can view remotely, forward to any address, discard, or recycle it. Some postal mail items, like notices from the bank or government institutions, can be time-sensitive so receiving postal mail at a fixed address on the go is necessary for any business owner.

  • Open and Scan Business Mail - The staff at your virtual mailbox location digitizes your mail so you can read its contents. Digital copies of your scanned postal mail are stored in your virtual mailbox account free of charge. You can access your scanned mail for as long as your account is active, making it an accessible digital archive for your business. You can also label it for easier searching.

  • Forward Postal Mail and Packages - You can request your mail center to ship your postal mail and packages to any address.

  • Schedule Mail/Package Pickup - Set a day to pick up your postal mail or packages from your virtual mailbox location. This gives you more control over your time, which is always a plus if you run your own business.

  • Shred Confidential Mail - Documents may have sensitive information like bank information, account numbers, and personal details. You don’t want your business mail in the hands of the wrong people. Shred sensitive documents in a click — it’s like having a personal assistant deal with mundane tasks like shredding mail.

  • Discard/Recycle Spam Mail - You can have mail that is not important or confidential thrown out for recycling.

Start your business on the right foot. Be sure to avoid the mistakes above when registering your LLC.

If you are ready to move through the proper steps to form an LLC, sign up with an Anytime Mailbox virtual mailbox. With more than 1,800 locations in the US and internationally, there is an Anytime Mailbox location that will suit your business needs.

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