Can You Use a Virtual Address for a Business Bank Account?
Most if not all aspects of running a business can be done anywhere these days, but one lingering question remains for many location-free entrepreneurs: Can I open a bank account without a physical address? Can I use a virtual address for a bank account? Is that a thing?
When signing up for a bank account, it's standard practice for them to require a physical address to verify your identity. But what if you don't have a permanent address? Or what if you don't want to tie your home address to your business banking account? In this case, a virtual address may be just the solution.
Can I use a virtual address for a bank account?
Can you use a virtual address for a business bank account? In short, yes this is possible!
Banks are adapting to the digital era and many are now recognizing the validity of business owners operating with a virtual address.
However, this is not a blanket statement. Whether or not you're able to open an account using your virtual address depends on the country you're opening a bank account in and the individual bank you're working with so take time to do research and due diligence ahead of time.
Physical addresses versus virtual addresses
It may seem like physical addresses are more legitimate than virtual addresses, but they're both real and perfectly valid. The big difference is a physical address is likely in the same location as the business.
A virtual address or virtual office is like a subscription where a business pays a fee to have access to an address which they can list on their website and use for mail and banking purposes. As long as it is a genuine, accessible street address most banks will accept a virtual address for a business account.
Benefits of virtual address
If you're thinking about using a virtual address, it's likely because you're a digital nomad or you're running your business from your home. In addition to having the ability to open a bank account, virtual addresses offer several other benefits.
● Privacy: Listing your home address on your website makes it publicly available. A virtual address keeps your personal information private
● Mail: A service many virtual offices offer is to collect and handle your mail for you
● Professionalism: Listing the location of an office building as opposed to a residential home gives your business a professional appearance
● Meeting and workspace: With full service virtual offices, you can rent meeting rooms or office spaces when you need them
Finding a virtual office
● Services: What do you want to get out of a virtual office? Do you only need the address or are you looking for services such as meeting rooms, virtual receptionists and mail forwarding?
● Cost: While a virtual office will save you money by not having to purchase, lease or rent physical space, it is still an expense. Decide how much you can afford to spend on a virtual address and how many services you require to run your business
● Location: A perk of a virtual address is it can be anywhere. You could select a virtual office in your current location so you're able to pick up your mail and use its meeting rooms and office spaces. Or it might be more important to you to select an address in a more prestigious area
Investing in a virtual address can provide you with the services you need to run and grow your small business remotely. Providing you with the ability to open a business bank account and access a variety of services makes having a virtual address a huge asset for any small business.