The way we work has evolved in the 21st century, and nothing has changed more drastically than where that work happens. Thanks to tech advancements and the growing popularity of remote workforces, businesses can operate without physical office spaces.
That said, mailing addresses are still necessary for registering businesses, opening bank accounts, and corresponding with stakeholders.
So, how do you get an address without building or renting an office space? You have three main options: virtual addresses, virtual mailboxes, and virtual offices.
In this post, we compare the three to help you pick the right option for your setup.
What is a virtual address?
A virtual address is a location that is typically owned by a mail service entity. The service provider allows other businesses to claim the address as their own, and it serves as a stand-in or replacement for the business’s actual physical address.
Many LLCs use virtual addresses as their business address, especially if they don’t have a physical street address (such as digital-first companies or home-based online businesses).
Getting a virtual business address is simple:
- A business or individual signs up with a virtual address provider and picks an address.
- Next, they fill out and submit USPS Form 1583, though some virtual address providers (like Stable) assist with this part of the process.
- That’s it! The business can start using its virtual address on correspondence, marketing materials, and legal paperwork from the IRS, banks, and other government entities.
Note that a virtual address isn’t the same thing as a P.O. box — and that’s a good thing. Post office boxes are an effective way to receive physical mail, but you may not be able to use one as your business address for legal purposes.
They also have other limitations, including size restrictions and limited access hours. Further, you can only receive USPS mail; you cannot receive packages from FedEx, DHL, UPS, or other couriers and shipping services. Plus, a P.O. box address can give off an amateur vibe, harming your professional image.
In contrast, a virtual address is a real location your business can claim as its own and use for various registration, tax, and licensing needs. It looks and sounds like a real street address — because it is one!
Benefits of a virtual address
Using a virtual address service offers all sorts of advantages, including:
- Privacy: If you run a business out of your home, you may not want to disclose where you live. A virtual address helps protect your privacy.
- Professionalism: A virtual address can put you in the central business district of your city or another prestigious location, lending your brand a sense of professionalism.
- Flexibility: A virtual address frees you from any specific location, allowing digital nomads and freelancers to roam freely.
- Reduced costs: The cost of a virtual address is significantly less than the cost of a physical office. The average price of renting office space is $33 per square foot, while a virtual business address can cost anywhere from $10 to over $200 per month.
Limitations of a virtual address
Virtual addresses are a great idea for many businesses, but they may not be the right fit in every situation. They come with certain limitations, including:
- No true physical access: Your virtual address is a real place, but your presence there is 100% virtual. You won’t have access to any office space, and there isn’t a front desk (at least, not one that represents your business). If you need a place to meet clients (and clients expect that place to be the address on your business card), this might not be the right approach for you.
- Limited physical mail service: Virtual addresses don’t automatically come with mail service. If you expect to receive business mail regularly, you may want the expanded services offered by virtual mailbox providers.
- May confuse searchers: If your customers or prospects are likely to look you up on Google Maps, virtual addresses can sometimes create confusion (since you usually can’t have a Google Maps listing at that address).
Who needs a virtual address?
If your business or organization doesn’t expect to receive a high volume of mail, then a virtual business address could be right for you.
Here are a few scenarios where a virtual address could be especially valuable:
- Nonprofits that want to establish more credibility
- Small LLCs and freelancers who don’t want to associate their home address with their business
- Businesses expanding into new markets that need a local address
- Influencers who want to keep their home address private
- Individuals who can’t use a P.O. box to register their business or open a business bank account in their state
What is a virtual mailbox?
A virtual mailbox is a physical location owned by a mail service entity that accepts, processes, and stores mail on behalf of its customers. It provides the same service as a virtual address provider and then some, adding in mail management, mail scanning, mail forwarding services, and more (depending on the provider you select).
Confused about how virtual mailboxes work and what makes them different from virtual addresses? These concepts do overlap considerably. The difference lies in scope and service: virtual mailboxes always include a virtual address, but virtual mailbox services add many more features to the mix.
Here’s how a virtual mailbox works:
- Upfront, the onboarding process is the same as it is with a virtual address. You start by signing up with a virtual mailbox provider, picking an address, and filling out USPS Form 1583.
- After that, you can start using your virtual address for all correspondence.
- Here’s where the two services differ. The virtual mailbox provider now receives and processes all of your mail, uploading it to a secure online mailbox. You can view your mail online, have it forwarded, shred unneeded and junk mail, or (sometimes) pick up items in person.
Benefits of a virtual mailbox
Using a digital mailbox service offers many more advantages than sticking with just a virtual address. These include:
- Access scanned copies of mail digitally: Quickly triage your incoming mail, get rid of what you don’t need, and forward the necessary documents and packages to your physical address.
- Confidentiality and security: You might not think about mail theft much, but it’s an increasingly common problem. A virtual mailbox service adds a level of privacy and security to mail reception and storage.
- Reduced clutter and storage needs: Physical mail takes up space. Filtering your mail and receiving only the mail you actually want reduces your storage needs and keeps clutter at bay.
- Savings on shipping costs: Many virtual mailbox services will bundle mail and small packages, saving you money on shipping expenses.
On top of these benefits, many virtual mailbox providers offer additional services and capabilities, either built into their plans or available as add-ons. For example, Stable can deposit checks automatically and provide registered agent services. We also integrate with the office tools you’re already using, allowing you to automate your mail processes.
Limitations of a virtual mailbox
As effective as virtual mailboxes are for businesses of all shapes and sizes, there are certain limitations when using this type of service.
- No physical spaces: Virtual mailboxes don’t usually include physical office or coworking spaces. So, if your business needs a distinct place to meet clients in person, most virtual mailbox services won’t fulfill that requirement.
- No reception or answering services: Unlike virtual office services, virtual mailbox providers don’t offer phone answering or receptionist services.
- May confuse searchers and in-person customers: Like virtual addresses, virtual mailboxes don’t give you a physical storefront or office space. Depending on how your business operates, this could create confusion for clients who might attempt to drop by your listed address.
Who needs a virtual mailbox?
If your business could benefit from a virtual address and plans to receive mail regularly, then a virtual mailbox service is a good idea.
Here are a few types of businesses which virtual mailboxes work especially well for:
- Fully remote businesses
- LLCs and freelancers who receive physical mail
- Startups and solopreneurs
- Small businesses running out of personal residences
Virtual office vs. virtual address vs. virtual mailbox: Key differences
For businesses looking for a physical office space and meeting rooms, virtual offices can be a suitable choice. They typically include most of the elements you’d get out of a virtual mailbox (including that virtual address) and operate on a pay-as-you-go or rental basis.
However, the additional real-world elements drive up costs significantly, making them more expensive than virtual addresses and mailboxes. So, which option is ideal for your business?
Here’s a breakdown of their key differences to help you decide:
Remember:
- A virtual address typically only offers a business mailing address.
- A virtual mailbox offers the mailing address plus mail management services.
- A virtual office provides a shared physical space, and, sometimes, mail receiving and management services.
Partner with Stable to get the best virtual address and mailbox
If you’re a small business owner or entrepreneur looking for a better way to handle your postal mail, Stable is your ideal virtual mailbox partner.
We make sure your business mail is accessible, convenient, and secure, whether you need a virtual address or an address with additional mail management services that come with a virtual mailbox. Stable offers cost-effective services that can save you time and enhance your business operations, like check deposit and registered agent services.
And we integrate with the tools you use, including Slack and Microsoft Teams, to streamline communication with your team.
Ready to explore what a virtual mailbox can do for your business? Start the process with Stable today.
