It costs more than ever to get a UK small business off the ground these days. The cost to register an LLC with Companies House – a legal requirement – has jumped from £20 to £71. The Energy Bills Discount Scheme came to an end in March 2024, removing government support for small businesses facing rocketing energy bills. The use of external finance by small businesses saw a consistent rise in 2023, growing from 41% in Q1 to 50% in Q3, with greater reliance on credit cards and overdraft facilities.
But the good news is that advancements in technology largely driven by rising costs and a continuing preference for remote working have come up with solutions that can help you bring your outgoings back under control. The one you need to pay the most attention to? The option to use a virtual address for your LLC. Read on to find out why.
What is a Virtual Address for an LLC?
A virtual address for a Limited Liability Company (LLC) is a service that provides a business with an official address in a desirable location without the need to rent or own physical office space at that address. This type of service is especially useful for small businesses, freelancers, and entrepreneurs who need a professional business presence without the costs associated with maintaining a physical office.
But a virtual mailing address for LLC is not just an empty shell. UK law states that your LLC registered business address has to have the capacity to receive and process mail from HMRC and Companies House relating to the running of your business. It needs to be a virtual physical address for your LLC, with staff that can check the mailbox and make sure you get your post. The best virtual address service for LLC will always offer same-day mail scanning services to make sure that you can get your important mail as soon as possible.
To find out more about using a virtual office for your registered business address, read our comprehensive guide to virtual offices in 2024.
The Top 5 Benefits of Using a Virtual Office for Your LLC
A virtual address is an invaluable resource for LLCs and small businesses looking to establish a professional presence, comply with legal requirements, and manage their correspondence efficiently, all while saving on the costs associated with maintaining a physical office.
Whether you’re a start-up looking to build your dream on a shoestring, or a large company looking to scale back your outgoings, using an LLC virtual office could be the perfect solution.
Let’s break down the benefits of using an LLC virtual office.
Increased Credibility and Professional Image
One of the main advantages of using a virtual address for your LLC is the boost it gives to your business’s credibility and professional image.
Having a mailing address in a prestigious location can make your business appear more established and trustworthy to potential clients and partners. It gives the impression that your business operates from a prime business district, even if you’re working remotely or from a different location entirely. It’s a perfectly legal and legitimate way to prove to your clients that you’re serious about your business.
What’s more, when customers see that your business has a physical address, they’re more likely to trust your brand. This is why using an LLC address for online business is particularly popular. It puts your brand right up there with the shop fronts in the top spot – and reassures customers that they are dealing with a real and reputable company.
Cost-effectiveness and Flexibility
This one is a major advantage of using a virtual address for your LLC. Renting a traditional office space in a desirable location can be way too expensive for small businesses, especially start-ups. The big draw of using a virtual address for your business is that you can have a prestigious business address without having to pay the overheads of renting a physical space.
Take London as an example. You can get a virtual office at Impact Brixton for £12.50 per month. That includes same-day mail scanning services and a registered business address in the heart of Brixton Village – a renowned hub for exciting small businesses. The average cost for office space for rent in Brixton is about £38.54 per square foot. That’s a lot more than £12.50 per month!
Not only do you have the flexibility to work from wherever you like, but you can also use the money you save on rent to boost your marketing, add to your product development, or hire more staff. And if you choose a virtual office provider like Impact Brixton, which offers access to meeting rooms and private offices, you can scale your operations – all without the hassle of changing your registered business address. It’s ideal for growing your business.
Privacy and Security Benefits
Tightening up your privacy and security is a good idea for businesses of all sizes – but it’s especially important if you’re running your business from your home address. Having a virtual LLC address means that you can avoid sharing your home address with clients, customers, and partners. So you won’t get any persistent customers turning up on your doorstep!
Using a virtual address can also help you to keep your personal and professional lives. You may be working from home, but you don’t need letters from HMRC mixed in with your household energy bills! The professional mail handling services offered by most virtual address providers, whether in the form of mail scanning or mail forwarding, helps you to make sure you never miss an important piece of post.
And if you’ve read this section and suddenly realised that using your home address for your registered business address has left your location publicly visible online, don’t worry. It’s super easy to change your address on Companies House. Check out our step-by-step guide here.
Meeting Legal Requirements
Using a virtual address for your LLC can also help you meet legal requirements. In the UK – and many other jurisdictions – businesses are required to have a physical mailing address for official correspondence. This applies to ALL businesses, whether you operate online or from a physical location. So if you’re wondering ‘can I use a virtual business address for my LLC?’, the answer is yes – it’s a perfectly legitimate option for companies in need of a physical mailing address to use as their registered business address.
However, it’s important to note that while a virtual address can satisfy the legal requirement for a mailing address, it may not always be sufficient for other purposes, such as registering a company or obtaining certain licences. It’s crucial that you understand the regulations in your jurisdiction – consider consulting with legal professionals or relevant authorities to make sure you comply with all legal obligations specific to your business.
Access to Resources and Facilities
When you take out a virtual office for your LLC, it’s worth looking at all of the extra resources and facilities on offer. Some virtual offices come with virtual assistants or receptionists, who can help you tick off your administrative tasks and give your company a professional image. This is especially useful if you’re looking to keep your personal phone number private – some virtual offices allow you to rent a phone line, making your business appear even more credible.
Some virtual offices even come with access to offices and meeting rooms. For example, as well as being one of the most affordable virtual office services around, Impact Brixton offers coworking facilities, fully serviced private offices, meeting rooms that you can rent by the hour, along with workshops and networking events. And we all know that business is about who you know, not what you know!
How to Set Up a Virtual Address for Your LLC
If you’ve read these benefits and you’re thinking ‘I need a virtual address for my LLC!’, you’ll be pleased to know that it’s super easy to sign up. You can follow the five simple steps outlined here.
Impact Brixton’s Virtual Office Programme for LLC
If you’re looking for a virtual address in London, Impact Brixton offers a virtual office programme that provides:
Professional Business Address: Located in Brixton Village, a prime London postcode with excellent transport connections and access to the city centre.
Mail Handling: Whether you’d prefer to have your mail scanned and emailed to you or forwarded onto your home address.
Community Support: Access to a network of freelancers, entrepreneurs, and social change-makers, along with training programmes and networking events.
And prices start at just £12.50 per month! Check it out.
Conclusion
Using a virtual address for your LLC can be a real game-changer. It boosts your business’s credibility, saves money, offers flexibility, and keeps your personal details private and secure – all without the hassle of maintaining a physical office. Whether you’re a start-up, a small business, or an entrepreneur working from home, a virtual address helps you look professional and lets you focus on what matters most: growing your business. Check out our list of the best virtual offices available here.
