If you have recently signed up for a business virtual mailbox address (or are considering doing so), there will be a few administrative details you will need to take care of.
Mainly, there will be various clients, organizations, and government departments that you will need to inform about the change of address.
If all of that paperwork sounds daunting and is actually putting you off opting for a new business virtual address, this guide should put you more at ease.
The fact is, with a bit of planning, dotting all the “i’s” on your new business address will not be a problem.
Let’s take a look.
Do I really need to update my business address details?
I am afraid so. If your business address changes for whatever reason, it is important to update those details and inform vendors, government entities, and tax institutions so that there is no interruption in the flow of important correspondence and notifications.
This applies even if you have access to your old business address. In some cases, it is a matter of law that your official business address (even if obtained via a virtual mailbox provider) is known by the likes of the tax office. They need to keep tabs on you after all.
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What happens if I don’t update my address details?
Federal and state tax notifications are sent through the mail. If you do not receive these because they are being sent to the wrong address, you could incur large fines and late penalties.
Away from issues surrounding the government, not making your new address details known could impact your relationship with clients, customers, and vendors.
Essentially, notifying those in the need will lessen the complexity of having mail sent to your old address and the inconvenience this creates for all involved.
What government entities should I notify of my change of address?
Federal level notifications
The IRS is the most important entity that needs to be updated with your new business address.
This will involve you mailing in an 8822-B form to officially declare a new business address. If however, you are very close to completing a current tax return, (within a month of the address change) you can enter your new address on that return as a way of notifying the IRS.
The state where you formed your LLC will need to be notified of your change of address. If you are utilizing an ongoing Registered Agency Service, you may be able to contact them for advice on this.
The reason guidance is recommended is that every state has different filing requirements. You could also go direct and contact your secretary of state’s office to find out what they may need in light of the address change.
Also, if the terms of your business mean that you have a state-issued license of some kind, (restaurant license for example), the body that manages such licenses will need to be notified of your address change.
Also, if you have hired employees within a particular state there may be a variation of a Franchise Tax Board, and an employment department that will need to be notified of any changes.
Business vendors and services
Updating your business address with all the various vendors and services you use is also important in order to avoid disruption of services and to ensure that everything is operating with good standing.
Mail items such as bills, notifications, and other documents should have your new business address attached. Not only to ensure they reach you but for your accounts too.
Vendors and services you should notify:
- Business Banking
- Legal team or advisors
- Payroll companies
- Company credit/debit cards
- Billing / invoicing software
- Automated email services
- Insurance companies
- Cap table management services
You may also have vendors specific to your business that needs to be notified of the address change. Utilities, internet services for instance, and cell phone network providers, etc.
If you have a website or business pages on social media these too should show the change of address. This will help your customers and clients reach you easier.
Essentially, it is recommended that you do anything you can to ensure your business relationships are aware of the fact your address has changed.
There is no denying that changing your business address does involve some work on your part. However, careful planning and being aware of what needs to be done, does make the process a whole lot easier.