When setting up a business, it has to be registered under an actual address. While for most people it comes as an afterthought, a business address should be well planned.
Renting out a place can be costly for startups. Also, it may take a lot of time to find a suitable location. This is harder if you want a location in a busy business center. Instead of going through the trouble of finding a place, some people opt for a home address.
A home address is a good option as it is cheaper. However, it can also compromise your security. So is using a home address for business in the UK a good idea? Consider the pros and cons when opting for a home address for your company. Find out the advantages and disadvantages of using a home address and the best alternative.
Why use your home address
Why are business owners and startups using the service home address? Why do you need to try using your home address for registration of a company, and why can you actually use your real home address? Let’s check out and find out some of the benefits:
1. Cost-effective
Renting an office can be expensive. Offices in reputable business locations are even more expensive. Apart from office space, you also have to pay for bills. This may reduce your revenue. That is why many business owners use their homes. It allows you to save on expenses. Startup businesses looking to save money can use their home addresses.
2. Easy to set up
To set up a home office, you don’t need much. All you need is a room in your house and some equipment. You don’t have to go through the lengthy process of finding a lease. Once you get the equipment, you can work without delay.
3. Convenient
Working from home is convenient. Especially since all your mail will be sent to your home address. Any correspondence will be through this address. All the mail will come to your address. It is even better if you don’t receive a lot of personal mail. So there is not a lot of mail to sort out.
Reasons against using a home address for a business
For some of the entrepreneurs, especially for newbies, it is very tempting to use home addresses for the registration of their own businesses. However, you have to consider all pros and cons for your company, according to your requirements. You also need to be aware that the address you use for business becomes public domain information that will be also public on your website. Let’s check the list or examples of why the usage of your home address as your business address could be not appropriate in some cases:
1. Privacy is compromised
Having your address available to the public is not a good idea when you want privacy. That’s because all business addresses are added to the public record. So anyone can look up your address, and even visit you unexpectedly. Unsolicited visits are not the only thing to worry about.
These unwelcome visits can be from anyone including clients and competitors. People from government offices such as HMRC may also visit you. Another problem is that your home can be seized if the company undergoes some financial challenges.
3. Legal challenges
If you want to open a business in the UK, the address used should be locally registered. So if you use your home address it will prevent you from starting a business. So it is either you relocate or use a registered virtual address. All legal documents by HMRC will be sent to this address.
4. Lost mail
Using your home address can lead to lost mail. If you are already receiving personal mail at the same address, it may mean you are going through piles of mail. You may miss important mail and even lose documents. A home address also leads to receiving mail that may be harmful. To prevent this, companies use virtual addresses that provide mail handling. This reduces the chances of any lost or suspicious emails.
5. Reduced professionalism
Working from home is gaining ground. However, having your home address listed under your business doesn’t seem professional. Other investors and partners may not take you seriously. To establish a company as credible, you need to have a commercial address.
When you are seen as a professional and credible company, it makes your company competitive. Customers will also turn to your brand because you are reliable. Customers are more likely to purchase your products if you have an address in a reputable location.
Choose virtual addresses
A virtual address is a solution to the dilemma. Instead of going through the stress of setting up a business under your home address, you can simply pay for a virtual address that comes as a package. It is a more flexible solution. You work from home while maintaining an address that people can send mail to. Any mail from government offices will be delivered to a virtual address.
Any correspondence with the government should be through a physical address. That is why you can get a virtual address at Hoxton Mix. The benefits of virtual addresses include:
- Professionalism
- Privacy
- Meeting places
- Cost-effective
- Unlimited packages
Virtual offices come with different packages. You can choose the services that you need such as mail or videoconferencing and pay accordingly. Also, there is no need to be physically at the address.
Final thoughts
Working from home may seem like a good idea. It is cheap and that is why startup businesses may consider this. You get to work in your home, which may be convenient. Also, it is easy to set up. There is no need to worry about finding a place. You just need equipment to get started. However, there are some disadvantages which you should also take into account.
Using a home address can mean no privacy for you or your family. You may get unsolicited visits and lost mail. Any legal challenges may also jeopardize your home and authorities want to seize it. To avoid these challenges, you can use virtual offices. These give you access to a registered mailing address. It makes you come across as a professional.
