What are the main reasons for using a virtual address? Why would anyone want an address at a different location from where they live? On the face of it that is a reasonable question.
It doesn’t make much sense as the hassle of having your mail items and packages sent to a virtual address seems impractical.
With virtual mailbox services, this is not true. The are many benefits and reasons why someone would use a virtual address and a mailbox service to manage it.
Today we will look at the top 6 reasons for using a virtual address.
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1. Keeping an address in your home country when moving abroad
This is by far the biggest reason people signup for a virtual address for personal use.
Travelers, expat families, and digital nomads that live abroad often need to have a way of managing the physical mail that arrives in their home country.
A virtual address makes this possible. Mail items can be sent to that address, processed by your mailbox provider allowing you to see scans of those items and manage them from your location abroad.
Essentially, a virtual address allows you to keep “one foot in the door”, so to speak. It gives you a presence in your home country for important correspondence (banking, voting, etc), without the need of asking friends or family to pick up your mail or expecting various the sender to post to you directly.
Not necessarily moving abroad but on the move in your RV? A virtual address will help here too, giving you a fixed address to receive your correspondence while you enjoy life on the road.
2. Moving to a new state or location and preparing ahead of time
Another reason people opt for a virtual address for personal use is when relocating.
If you are moving to a new state or area of your home country, (or even abroad as detailed above); you can begin to make preparations ahead of time by using a virtual address based in the new location.
For example, a virtual street address to use on paperwork will make the process easier when signing up for things that you need. This could be permits or other government paperwork, or simply subscriptions that require a local address.
Whatever it may be, having a foothold via a virtual address before you arrive (and being able to manage the mail remotely), can make things easier.
3. Online Shopping (where vendors do not deliver to your home)
Online shopping is another popular reason for having a virtual address for personal use.
This is beneficial in situations where the online vendor does not deliver to your home address. You might live outside the U.S for example, yet want access to everything that is sold on U.S based eCommerce stores.
When you purchase the item online, you use your U.S virtual address as the destination for the package. Your mailbox or package forwarding service (that manages the address), can then forward your parcel to whatever corner of the world you line in.
4. Establish a business in a new location
Now we are moving into areas where a virtual address can be good for business.
Establishing a business in a new location is a big reason to use a virtual address. If you want a presence in that state there will be many areas where the address is vital.
From having an address for clients and customers to providing address details to state and government departments relevant to your business.
There is also a big draw of having a prestigious business address. With a virtual address, even a solo entrepreneur can give the impression that their business is run from an office in the business district of a large metropolitan area.
This portrays a professional image for your business and helps to build trust.
5. Form an LLC in a beneficial state
Virtual addresses are also great for businesses where you might want to form an LLC in a beneficial state.
For instance, Delaware is a popular choice for business registrations due to the low corporate taxes in pace there.
(At the time of writing more than half of all publicly traded companies in the United States use a Delaware address for this purpose.)
Virtual addresses in Nevada and Wyoming are also used because those states do not collect corporate or personal income taxes or charge franchise taxes.
The important issue is to do your research to see where incorporating your LLC may be beneficial to you and your business.
Another popular destination for a virtual business address is Nevada. Here, the state gives businesses anonymity in public filings.
Once you scratch the surface there are many reasons you might want to form an LLC using a virtual address in a different destination from where you are based.
6. Keep your business and home address private
The fact is, in 2021, many of us operate our small business enterprises from home. Covid has seen a big increase in this too.
If you fall into this category a big reason to use a virtual address is to simply keep your home and business life separate.
It is a risk to your privacy to add your home address to invoices or as the contact address on your business website, (it doesn’t look professional either).
By opting for a virtual address you can run all your business dealings from that while keeping the privacy of you and your family safe.
Final Words
As you can see, there are many reasons one might want to use a virtual address.
To find out more about the various virtual address, mailbox, and package forwarding services available, head to our service reviews section.
I’m a 25 year veteran of USPS. I’m retired now, but as the editor of Mailbox Master, I can’t quite remove myself from the carrier industry just yet. 🙂
