Should I use my Home Address as a Registered Business Address?

Every business is different, so the answer to the question 'Should I use my home address (residence) for my business?' is as unique as the business itself.

There’s no legal reason preventing use of a residential address for business, so there is no straight answer. The best that we at Pink Storage – or anyone - can do is offer some insight into the advantages, disadvantages and considerations.

Should you use a home address as a registered office address? The two main advantages

1. Cost savings on a business address

Office spaces, virtual offices and the like have a cost, so it's tempting to keep costs down by working from home and using home as a business address for as long as possible.

2. No need to leave home to get your mail

If your business mail is coming directly to your home address, there is no need to leave home to collect it - it's conveniently there on your doorstep each morning. (See below for disadvantages of this approach.)

The disadvantages of using a home address as a registered office address

1. Using a Home Address as an Office Address: Unwanted mail at your home

Yes, we listed mail as an advantage. But this can also be a disadvantage.

2. Using a Home Address as an Office Address: Lack of personal privacy

If you have opted to set up as a limited company, Companies House, which stores information on all limited companies and LLPs, publishes all registered office addresses and there is no way to remove it from the public domain.

A registered office is an official contact address for correspondence, particularly statutory mail from HMRC and Companies House.

Address fraud can be used for identity theft crimes, which is far harder with a separate business address. (Fraudsters know that your bank account, passport etc are likely to be listed at your home address.)

However, a business does not have to be based at its registered office, so a PO address, a virtual office service or the address of the accountant managing the company's corporation tax could prove viable alternatives.

3. Using a Home Address as a Business Address: Professional Image

A business address suggests to buyers that the company is a genuine company, and suggests more success than a home-based business, which, however successful, is often perceived as the territory of the ´mumpreneur´ or kitchen sink´´ businesses (the somewhat disparaging name for lifestyle businesses created to allow parents to juggle a small cash generating business alongside parental duties).

Moreover, there is growing awareness of phoney businesses using personal addresses as a “warehouse”.

In summary, it does depend on the type of business: selling something wholesome and handcrafted may benefit from a home address, whilst something ´glossy´ like an ad agency might benefit from a more ´glossy´ mailing/public address.

4. Using a Home Address as an Office Address: Insurance complications

Insurance companies often do not want to provide house cover to those that run a business from their home. It is hard to argue that you are simply ´working from home´ if mail is arriving for the business or the address is on public record at Companies House.

However, some insurers will (but get quotes from other house insurers before approaching your existing one - they could cancel your policy immediately if they won't insure a business address.)

Alternatives to Registering a Business at my Home Address

Using a Virtual Business Address

A virtual business address can be used for registering your company. Essentially it's a real address with a forwarding service. This means you can use it to receive post, and put it in public places to protect your privacy.

The downside is that people can't visit and a search on the address will reveal numerous businesses to customers.

One step on from this is a virtual office service, often offered by serviced office spaces, which then ca.n be used for meetings if required.

With both services, there is, of course, a cost.

Registering an accountant or solicitor's address

It's possible to use your accountant or solicitor´s address as a registered address. It´s important to have their permission first.

The upside is, of course, that they are on top of the business admin type mail (tax, Companies House etc). The downside is that you are then reliant on them for forwarding things, and if you decide to change the person/company (supplier) providing the service, you'll need to remember to change the address anywhere that your business has been registered/listed.

Company formation agents and secretarial agents' registration support

Company formation agents and secretarial agents can not only help with registration but also give you an address to use.

There's a list at Companies House of these agents: HMRC listed company formation agents and secretarial agents.

PO Boxes

HMRC has advised that you can no longer use a PO Box as your registered office address.

Can I use a self-storage unit address for my business?

Although some may be set up to do so, most self-storage units, including Pink Storage, don't allow you to register your storage unit as a business address. Check with your provider.

Self storage units are, however, great for additional storage to help you manage your business, wherever you may be registered.