What is a business address in the US and do you need one?

If you’ve ever looked into starting a business in the US, you’ve probably come across at least one of these terms:

• Correspondence address;
• Registered address;
• Virtual office;

Here’s the truth: They all refer to a business address, but not in the same way. As a business owner, knowing the difference matters for compliance, taxes, and even how your company is perceived.

This article will break down what a US business address really is, how it differs across types, and which option is right for you.

1. Why are there different terms for a business address in the US?

The main reason you’ll hear “business address,” “correspondence address,” “registered address,” and “virtual office” is that business setup in the US is not one-size-fits-all.

Different government agencies in the US, lawyers, accountants, and service providers all interact with your company address in different ways.

Naturally, they call it different things depending on what they need it for.

1. Legal compliance: States require a “registered address” for official documents.
2. Mail delivery: Businesses still need a “correspondence address” where letters actually arrive.
3. Flexibility:  Startups and overseas founders often use a “virtual office” instead of renting physical space to save on costs. 
4. Marketing and perception: Some providers promote one type of address as more “professional” than another.

There’s nothing wrong with any of these distinctions. But it does make things confusing if you’re trying to figure out which one you actually need.

And clearly, people are searching for these terms in different contexts:

• “Registered address” when forming an LLC;
• “Virtual office” when working remotely or from abroad;
• “Business address” when opening a US bank account;

So all of these terms point to the same core idea: Your company needs an official place to exist, but the way you use that address depends on your situation.

2. Quick summary of all the addresses

2.1. What is a US business address?

In summary, a business address is where your company is incorporated in the US. 

It must be a real physical address where you can receive letters, start your business, store your documents, and help you be compliant with the law for bank account opening, business filings, licenses, and tax documents. 

There are really only two distinct categories: the business address (the broad term) vs. its specific types (correspondence, registered, virtual) for the needs that you have.

3. Mistakes of using a business address in the US 

Now you know the different types of addresses and where they overlap.

But what do you actually do with this information? 

It’s just as important to know the mistakes to avoid. Because the wrong choice (or careless handling) of your business address can lead to compliance issues, lost mail, and even legal trouble.

For over 10 years of helping business owners incorporate a company in the US, we have noticed these 3 grave mistakes you must avoid at all costs.

3.1. Using someone else's address to save costs

At first glance, this seems harmless. Why not just use a friend’s address or another company’s address for your business registration?

This approach is not recommended since it poses serious problems:

• State and federal notices go to the wrong address, and you risk fines and dissolution
• You miss compliance deadlines simply because you never saw the letter.
• Banks and clients flag your company as unreliable, and payment processors suspend your accounts.

We’ve seen business owners take this shortcut, only to receive penalty notices months later for missing state filings they never got. In worst-case scenarios, they steal the address information of a strangers online to fill in the company formation application. 

By the time they came to us for support, the cost of fixing the problem was far higher than the small savings they thought they gained.

3.2. Using your home address

You can use your home address in the US as your business address. Many small founders do this.  We recommend you avoid doing it. 

There is a potential risk you must keep in mind: The risk of privacy. Your personal address becomes public record. Anyone from competitors, salespeople, to strangers. can look it up. 

We have had clients complain of marketing emails, spam showing up at their front door, and their address information circulating on spam databases. They have to spend even more to clean up the mess.

Protecting your privacy and reputation is worth the investment. If you open a business, you should consider using a registered address service with mail handling support.

3.3. Not updating your company address after a change

This is the mistake we see most often, and it’s the most damaging.

Businesses move offices, switch virtual providers, or upgrade their registered agent. But they forget to update their new address with key agencies, banks, and partners.

Whether you moved into a new office to expand or simply switched to a new virtual office, notifying the right agencies and listings is critical. Otherwise, your business risks penalties, missed mail, and compliance failures.

Here are the key agencies and listings every business owner must update after a move:

• Internal Revenue Service (IRS):  File Form 8822-B to update your business mailing address;
• Secretary of State: Update your Articles of Incorporation/Organization and state business licenses;
• City & County:  Inform local agencies to keep your permits and licenses;
• Financial Accounts:  Banks, merchant accounts, investment accounts, and lenders must all have your current address;
• Business Credit Accounts: Vendors, suppliers, and service providers need your updated info to ensure timely invoices and statements;
• Business Credit Reporting Agencies: Contact Dun & Bradstreet, Experian, and Equifax to update your company’s credit file;
• Websites & Directory Listings: Keep your website and local citations consistent, or you’ll hurt your local SEO rankings;
• Social Media Accounts:  Update your company’s profiles so customers don’t get confused.

We’ve seen too many businesses skip this step and pay the price:

• State and federal notices sent to the wrong address, resulting in fines or even dissolution.
• Banks freeze accounts when addresses don’t match records.
• Missed compliance deadlines simply because the mail was never forwarded.

Every time we’ve handled this situation for a client, penalties had already been applied — and only then did they realize how costly the oversight was. 

Here is our suggestion if you feel like there is too much to update: A 10-minute update across the right channels for 3 days continuously can save you thousands in penalties and months of stress later.