Digital office spaces provide users with a business address that allows customers and competitors to see the company as a legitimate establishment with a tangible presence. With the rapid growth in ecommerce, a lot of start-ups operate from the owner’s personal residence and actually do not require a physical office space to go about their business.
The task of handling mail, negotiating a lease and managing employees is one that causes an unnecessary workload for businesses that operate from personal premises by removing the unnecessary task of a designed business address. Virtual offices work as a buffer to provide the benefits of an office without drawbacks. Business owners can condense all of their business efforts into an easy to access space that is available when needed. This will in turn allow your business to grow and develop at a much faster rate. When using a virtual address, you are
Why Are Digital Business Addresses Necessary?
When listing your company address on your website you probably want to avoid giving out your personal home address. The last thing that anyone wants is to be bombarded at their home with customers. This helps to keep a healthy work-life balance and be more professional.
When applying for funding for your business some lenders will deny financial aid based on the fact that the business is using a home address as it lacks a sense of stability that a separate business address provides. Having an actual physical business address makes your business more credible when applying for credit financing as opposed to the alternate PO BOX option.
They are also extremely cost effect and easy to maintain. If you add up all of the costs that would be included in getting a physical address for your business including overheads and rent it just makes sense to use a digital business address and put those funds towards growing your business.
Digital offices are legal to hire, which is why they are in such high demand for freelancers, small and medium-sized companies. It may be regarded as illegal as a result of the intricacy and confusion that might occur in response to the laws on taxation and registration of companies. Fortunately, this guide will speak about these things and how to employ a virtual office in the right way
Are Digital Office Spaces Legal?
Yes, they are completely legal to hire. This makes them a high demand amongst freelancers, small and even medium sized businesses. There are a few legal matters that are attached to them with regards to taxation and registration of companies. So, it is important to conduct your research beforehand and pick a company that understands the legalities that go with renting out a digital office.
Since virtual addresses are actually real physical addresses, they can be used for LLC registration. Always get legal advice and speak to a legal professional when attempting to register with a digital office space as they will be able best advise on the registration process.
What Do Digital Office Spaces Provide?
Professional Address: A good digital office provider should also provide the option of a physical space to rent, this differs from renting a traditional office in that you may only need to rent a small space to conduct the odd meeting or as a foot in the door to setting up your permanent corporate nexus.
Privacy: Keeping your personal details private is one of the main concerns and a digital office allows you this privacy. Regardless of your reasons for having a digital office, a good provider will ensure that your information is kept private and confidential.
Live Phone Answering and Local Phone number: You probably do not want to use your personal number, so having a telephone number that is local to your digital address and separate from your own allows you maintain that separation. Calls can be forwarded to your number or answered for you by a live operator in your company’s name.
Mail Forwarding & Scanning: Your address can be used as a mailing address. Your mail can then be forwarded to an alternative address or scanned and emailed to you so that you are able to receive it immediately.
Top 5 States For A Virtual Office And LLC
Wyoming does not impose state taxes and provides strong asset protection benefits. Having your primary office in the state makes it easier to shift income as well as domicile assets.
Wyoming is popular for virtual office use due to their limited liability company laws. Making the state a favourite amongst online resellers, graphic designers, ebay sellers and etsy creators to name a few. The legal system allows for business filing to be done online so that there is no need to actually be in the state. Due to the flexibility as well as the state not imposing any corporate or individual income taxes and charging a low sales tax rate, it ranks at the top of the list. A Well known Wyoming Trust and LLC Attorney provides valuable insight into the matter, more in depth information can be found on this website.
Delaware is popular amongst businesses because of their Chancery Court, which is specifically setup to handle business matters. The state also imposes a lower filing fee than most states, however the annual report does cost more than other top states.
The state provides no corporate income, personal income, or franchise taxes. Nevada’s LLC Act aims to imitatie that of the protection laws that Wyoming is so well known for. The filing and annual report fees for the state is notably higher than other options which is an important factor to keep in mind.
The state may not be the first option that comes to mind when thinking about starting a business, however they do offer some great perks for business owners.The state does not collect state income tax or sales tax but they can impose a relatively low local sales tax. Alaska offers attractive benefits to business owners such as certain tax credits and great loan programs, however they do require the business to be operating from the area.
Much like the other states, South Dakota does not impose any income tax and has a 0% corporate tax rate. Business owners can also expect no personal property, inheritance and business inventory tax. The filing process is fairly straightforward and filing fees fall into a reasonable charge range and does require a local registered agent.
When looking into a virtual office it is important to check the regulations of the state first and open your LLC in the same state as your office address. Keep in mind the tax% as well as the filing fees and process. It is always advisable to consult with legal and accounting specialists before venturing into opening up your business.