By Ruthie DiTucci
People often ask me as the CEO of GHR Global Humanitarian Reserve Corporation, why (as a corporation) we actually use our business address on our stationery. We do that because we are legally registered to do business at our business address. We do not use a rented mail box.
The real reason we use our actual business address is because we were advised to by the staff at the Internal Revenue Service when we were filing our forms. We learned to always use our business address on all our documents! And staying in compliance with government and tax matters is very important to us as a business.
The above image is for 3167 North Rainbow Blvd in Las Vegas, Nevada. Many businesses use that address on their correspondence implying that their business office is located on “Rainbow Blvd.” This UPS store is located right next to the GOODWILL charity store. In reality, this store has hundreds of mailboxes available for rent.
In the United States, whether registered as an LLC or a corporation, as the business owner, you are not allowed to use a PO Box as the physical address to be mentioned on your business licence or correspondence. This is because to get an LLC or corporation registered, you need to have a business address that must be legally valid.
The Internal Revenue Service (IRS) and the United States Treasury have a vested interest in businesses using their real legal address instead of a third-party mailbox, such as a FedEx Mail Box Store. The primary reason for this is to ensure that businesses are accurately reporting their income and paying the appropriate amount of taxes. By using a mailbox service, a business may be able to obscure its true location, making it more difficult for the IRS to track down potential tax evaders.
One of the key benefits of using a third-party mailbox service is that it allows businesses to maintain a level of privacy, particularly if the business owner works from home or operates a small business with no physical storefront. However, this privacy can come at a cost. By using a mailbox address instead of a physical address, a business may be less likely to receive notices or communication from the IRS or state tax agencies, making it more difficult for them to comply with tax regulations.
Additionally, using a mailbox address may be a red flag for auditors, who may question why a business would choose to use a third-party address instead of their actual place of business. Auditors may view the use of a mailbox address as an attempt to avoid tax obligations or conceal fraudulent activity.
Moreover, if a business uses a mailbox address, they may not be eligible for certain tax benefits or incentives that are available only to businesses with a physical presence in a particular state or region. For example, some states offer tax credits for businesses that operate in designated areas, or for businesses that invest in certain industries or technologies. By using a mailbox address, a business may not qualify for these benefits, even if they would otherwise be eligible.
Finally, using a mailbox address may be problematic for businesses that deal with government agencies or require licenses or permits. Many government agencies require a physical address to process applications, and using a mailbox address may lead to delays or rejection of applications.
In conclusion, while using a third-party mailbox service may seem like an attractive option for businesses seeking privacy, it may ultimately be more trouble than it’s worth. By using their real legal address, businesses can ensure that they are in compliance with tax regulations, eligible for tax benefits, and able to receive important notices and communication from the IRS and other government agencies. As such, it is in the best interest of both businesses and the government to use a real legal address where the owner transacts business, rather than a third-party mailbox service.
Using your real business address keeps your business legitimate and compliant!