For many who are planning to start their own business, the question arises as to whether they should use their home address as their business address, and it’s not always an easy decision to make.
Convenience may often take precedence when this decision is made, but while using your home address as your business address might seem the simplest and most convenient option, there are a good number of reasons why it rarely proves to be the case. Here are 5 reasons why it isn’t such a good idea:
- Your privacy may be at stake
The minute you officially connect your business to your home address, you’re making your personal information available to anyone and everyone. Your home address may be listed in any number of public records once your business has been registered in your state, and if you choose to create a Google profile for your business, your home address will be right there for everyone to see.
- It becomes hard to keep your personal and business identity separate
There are a variety of reasons why it’s important to have a clear distinction between your personal identity, and business identity, but ultimately, it enables you to separate your business liabilities, from your personal assets, with ease. Any confusion between the two, could result in issues when it comes to tax season, and most business owners don’t need more stress and hassle where those are involved!
- You may not be in compliance with local laws
It’s essential that when registering your business, you check with your particular state as to whether you’re even allowed to operate your type of business at a residential address. Non compliance of any relevant laws and ordinances can result in stiff penalties and more than just a slap on the wrist from the IRS.
- You might be leaving yourself open to crime
With businesses being up to 4 times as likely to be burgled as a home, by combining your business with your home, you could be inviting criminals to target you. In many instances, homes aren’t as secure as places of business, and criminals know that. Many thieves and nefarious types might be willing to test out your home security in search of some of the profits from your business, or items worth stealing.
You should also be mindful of who has access to your home address, and if necessary, you should consider using a virtual business address, which many entity management firms will be happy to provide you with at very affordable rates.
- Attracting customers and/or clients might prove tricky
With an official business address (even a virtual one), you’re helping to give customers and even potential investors, a more professional image of your business, and it can even help you to build up their trust, particularly where transactions are concerned.
It’s never a good idea to use your home address as your business address, but fortunately, with the prevalence of virtual addresses nowadays, you can get the both worlds; run your business out of your home, but have an address that is completely separate.