If you’re one of the countless Floridians who decided to start an e-business in the doldrums of the COVID-19 pandemic, Bryant Taylor Law applauds you for your initiative and bravery. The e-commerce explosion that occurred out of necessity will never fully subside. As a result, there has never been a better time to begin selling your products or services online.
At some point, you should consider incorporating your e-business — for a few reasons. Those who have already registered their business in Florida know that a physical address is typically required in the startup process. Referred to on SunBiz documents as your “principal address,” this is simply what you want your business’s address to be. The problem with entrepreneurs without a brick and mortar location for their business is that putting down their home address is not always optimal. For instance, do you want your home address to be in the public domain? Do you foresee clients — or worse, potential clients — showing up at your doorstep?
One solution that many aspiring entrepreneurs assume is sufficient is opening a P.O. Box at their local post office. There are a few problems with this arrangement.
- You are generally restricted to receiving mail from only the U.S. Postal Service at your P.O. Box. UPS, FedEx, and other couriers will not be able to deliver important mail — such as legal notice — to your company.
- Florida requires a physical street address for businesses registered in the Sunshine State.
- You will not be able to open a bank account for your business with only a P.O. Box. Additionally, you will have a difficult time securing a business loan without a physical street address.
- If you operate a business that is not incorporated, potential customers might not view your operation as legitimate, causing you to miss out on business opportunities.
So, if your home address and P.O. Box won’t work, what should you put down as your company’s principal address in the formation documents? The solution is what many refer to as a “virtual address.” Sometimes called a “digital address” or “virtual mailbox,” this is actually a service you can access through providers in your community. Despite the name, virtual mailboxes are actually physical, private mailboxes operated by other business owners. We will cover more details about virtual addresses and provide some pointers in next month’s blog.
Bryant Taylor Law is Here to Help Business Owners
For every business, there is a beginning and end. There are countless legal considerations entrepreneurs must address at those two critical junctures. Bryant Taylor Law, a business law firm run by small business owners, provides precise, personalized legal counsel for Florida entrepreneurs. Get in touch with our team today to schedule a business strategy session.
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