Do I need a "local address" in out-of-state areas where I invest?

Question

Wondering about having an "in-state" address in the states in which we invest buy-and-hold multi-family properties.  We have LLCs in those states (with a registered agent) but used our "actual" business address here in Washington as the "primary physical address".

Should we establish an address (with forwarding service) in each state?  What are pro's and con's of having a "local" (in the distant state) PO Box address for giving out as the business address?

Account Closed · Answer

In my opinion many business are based in other locations or online. I would not recommend a P.O. Box but rather a UPS Store box as it's a real address that receives all mail for you and they can even sign for things. Say you need to buy things for the property while you're in town and amazon has a smoking hot deal you can simply order it to this location, where as with a P.O. Box you can't really do anything besides accept letters.

Nghi Le · Answer

We use our Registered Agent's address as our business address in other states. This satisfies Chase. And some registered agents scan your mail and email it to you too.

Stephanie Windemuth · Answer

Thanks @Mitch Messer and @Mike R. for your input.  We certainly are not trying to hide anything, and we do have local property management caring for things.  It's a question we get asked regularly (by insurance companies, banks, etc.) and so we thought maybe we had missed something in the process.   Appreciate your thoughts!

Mitch Messer · Answer

Hi @Stephanie Windemuth. Have you already decided to manage these properties yourself? If so, then you'll probably want an in-state address for receiving correspondence, perhaps some payments, etc.

The main "con" is cost, but a PO box is pretty cheap.

If you're having the properties managed professionally, then I don't see the need to have a physical address yourself, since your PM will have one.