I am trying to get started on real estate investing out of the Chicago area. I have be under the impression that using your home address to start a business entity is not the greatest idea. I've read in multiple articles that a better inexpensive solution would be to use a virtual address. I was looking into going that route because I want to utilize the entity credit rather than my own as much as possible. The problem that I'm having is that I don't know if any are actually reliable. The one I see in most articles is Regus but upon looking at comments it seems like a terrible route to go, mainly do to customer service and extra charges. I also seen that many people using the V.A services had a problem with setting up a bank account because the bank was able to recognize that they were using a V.A. I seen 2 other companies on the list Alliance and Davinci but I could not find any other information about them outside of what they had on the website. If anyone has some solid advice on the V.A.s or any solution to avoid using your home address for you llc to get the most out of building business credit it would be greatly appreciated. Thanks in advance.

@Andre Deville - Simply owning properties in an LLC doesn't isolate them from each other and protect you from lawsuits. Especially if it's just a single member LLC. The primary purpose of an LLC is to act as a veil to dissuade lawyers from spending the time to find out what someone owns. You're better protected by having a property fully leveraged with a bank than by just having it sit in an LLC.

@Andre Deville I use PhysicalAddress since they scan your mail and also have registered agents. Limiting your personal exposure is a smart idea. It has less to do with piercing corp veil and more to do with privacy.

You may want to look in to hiring a Registered Agent. I use Northweast Registered Agent myself. On the State of Missouri's Secretary of State Website, it uses my registered agent's address as opposed to my own. I also have an LLC. While on the original articles of incorporation has my address on it, it is an old address and I no longer live there. Additionally, the registered agent submitted the paperwork to have the address changed to theirs. I am sure there is a way for you to set up an LLC and have your registered agents address.

Hey! Wait wait wait. It depends on the business. If you own 20 proprieties and you are just managing your companies all inclusive... you don't deal with tenants or clients and it is all internal, sure use your home address. BUT, if there is any marketing involved, and interacting with strangers,.... of course don't use your home address. People are messed up, I mean look at me. I am a bonified friggin nutcase. You don't want to let me know where you live. Your entire house will be TP'ed for thanks giving and you will be pranked for 3 years straight! I have come in contact with seriously disturbed people that get PISSED off when you can't make an offer that works for them. You really do not want those people to know where you live right? Especially if you have kids..

@Andre Deville - To your original question. You should probably get a P.O Box and have that act as your business address. But then you have to check that box unless you have the mail forwarded to your home address.

@Andre Deville I would advise the ups store where you can get a address and not a P.O. Box. I used my home address for a company that eventually close but you will still get junk mail for your old business. Plus people can search your business address and realize that it is in a neighborhood.

@Andre Deville - I use my home address on 3 different businesses, with one owning over 20 houses. I've pierced any kind of veil that an LLC gives you, but I'm not set up for that at the moment anyways. Don't get hung up in these fine details. You can always pivot down the road

@Dave Rav not sure a tenant could post a notice on a PO box? Basically check your localh laws. Some places aPO box wont do

I guess I should add that you need to check your local laws. Some places require that a tenant have the ability to post a notice for the landlord IMO in this day and age you can be found. So use of a PO box probably wont keep someone from finding you - if they really wanted to. I use a PO box, however all my tenants know me. I work on the property but I also have B class properties....

Avoiding using home address for real estate entity?

Daniel Tsikata

Investor · Fairfax, VA · Member since 2019 · 13 posts · 1 vote

6y

Originally posted by @Mike S.:

I think it all depends on your location and the bank. Some banks will accept the ups address while other will not. Then again, if they need your physical address on file and they don't disclose it to the public, then there is nothing to worry about IMO. Unless you don't want to bank to know were you live as well.

Most if not all national banks are cross checking the address with the CMRA list. If not at opening, you will get a phone call a few weeks down the road by their compliance department reviewing your file. Smaller community banks may or may not look that deep into it, but they are supposed to per their KYC regulation. All UPS locations, USPS boxes and most commercial mail boxes would be on this list. Virtual office should not.

Great insight Mike. I guess I was lucky then.

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Andre Deville

OP

IL · Member since 2011 · 12 posts · 0 votes

6y

@Mike S. hey it seemed that you hit closer to my concern. It wasn't all about tenants knowing my address although that is a concern. I had multiple people stating that they where not able to use a bank account with a p.o. box or ups box so I was wondering what would be another alternative if there is one. Are virtual addresses beneficial or do they get caught by the banking system?

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Mike S.

Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes

6y

So far my virtual offices were accepted by most but not all the banks for my businesses. However, for banking purpose I have no problem giving them my home address for me as an authorized user or beneficiary as they would probably get it through a credit check anyway. However, I made clear not to address any correspondence to it and to only to use the mailing address.

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Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

6y

@Andre Deville I am not sure it is this way in every state, but in my state you need a physical address, not PO box for LLC. Any rental business owned by an LLC, it takes me two minutes to look up their home address on the state website. It can actually be harder to locate someone's home address if they don't have an LLC. Tenants will look you up and they will drive by your house. I had a landlord friend who had an angry tenant driving by slowly to intimidate them! If you can hide your personal address, it is best. My advice is go to a local attorney that specializes in LLC and they can get you taken care of easily.

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Mike S.

Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes

6y

Originally posted by @Joe Splitrock:

@Andre Deville I am not sure it is this way in every state, but in my state you need a physical address, not PO box for LLC.

Most states are the same, however, the requirement is for the registered agent. If you want to be your own registered agent, then yes you are out of luck. Some registered agents will accept that you put the business address at their office. But that won't fool a bank. For the members, if they have to be disclosed (not in every state), you can use a mailing address or PO box for them (or even use the business address for them).

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Nick Calabro

Specialist · Wood Ridge, NJ · Member since 2016 · 16 posts · 9 votes

6y

Solid but conflicting replies in here. You do want to avoid using your home address if you can.
But if this trivial bottleneck stops you from taking action you've already lost.

You'd also do better with a million other things that can stop you today like an actual office and a stellar website.

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Kristopher KyzarBusiness Member

Rental Property Investor · Norfolk, VA · Member since 2017 · 260 posts · 174 votes

6y

@Andre Deville Just like @Account ClosedI also use Northwest Registered Agent. They use their address, and forward anything to me. They also handle any annual requirements that your state wants your entity to meet.

https://www.northwestregisteredagent.com/

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Avoiding using home address for real estate entity?

Avoiding using home address for real estate entity?

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