Renting a virtual office? How a virtual office affects your ability to open a business bank account
Since the outbreak of COVID-19, many businesses forced to take their business online to work at home. Forming business entities with the state and getting a business license seems easy enough for most owners. Instead of using the home address, many businesses rented virtual office plans
from local office buildings.
Virtual office plans are designed to create a corporate identity with a business address, receive mail, meet clients in the building's conference rooms or day-office. The problem occurs when setting up a business bank account.
Under the anti-money laundering and finance laws, a business cannot hold a business bank account using a virtual office. The bank needs a physical business location. This rule would mean home-based when
business owners would have to list their residential address with the state, a public record on the state's website. Do you want to publicize your home address? Most owners do not want the home address made public.
Solution? When opening your business bank account, use your home address as the Managing Member's physical location if you have an LLC and own 100% of the business. The bank needs to have physical access to the owner of the company.
Contact virtual office providers and your banker for more information about virtual offices and set up a business bank account.