Residential and business address: what's the difference? Find out !

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Those who are starting a business may have many doubts when it comes to indicating the company's address in the CNPJ registration. For example, if you don't have a commercial headquarters, what address should you use?

Residential and commercial addresses are highly sought after at this stage of business, but you need to be careful. Contrary to what many people believe, not just any company can operate from a residential location . Furthermore, a commercial address can make a big difference in the growth and day-to-day running of a business.

So that you fully understand the difference between these types of addresses, in this article, I will explain the following topics:

Business address vs. residential address;
How to use your business address in your company;
Is it possible to open a company with a residential address?
Is it worth using your home address to open a company?
Want to understand all this? Then keep reading.

Business Address vs. Home Address
Simply put, a residential address is any address where you can live, such as houses and apartments. In general, you cannot establish commercial activity there. However, there are some exceptions that I will explain later.

On the other hand, a business address is any address that is used for commercial purposes. Pretty obvious, right? These addresses are used to advertise companies, provide customer service, and more . They can be stores, offices, commercial spaces, and so on, whether owned or rented.

This type of address can be used by all businesses, given that it is not related to legal issues, but rather to the company's commercial aspects, such as opening bank accounts and registering with distributors.

But neither one nor the other is necessarily the tax address of your business , the one registered in the CNPJ as the tax headquarters, used by public bodies as a reference for the business.

What about the tax address?
The tax address is precisely what appears as a reference in the company's legal parameters . It appears in the CNPJ and must be linked to the CNAE activity of your business to ensure tax regularity.

It can be the same as the business address, but this needs to be carefully considered. Businesses and telemarketing leads, iran telephone number data industries, for example, need to have specific addresses that cover their activities, which is not possible with just any business address.

Read more : What is the difference between a tax and business address?
How to use your business address in your company
If your business allows it, your business address can be the same as your tax address. Just check if this is possible. But the most important thing is to understand that this is the address that represents your business.

This is what should be published on social media, on your website or on your business card. Your partners, customers and suppliers will use your business address as a reference for your business.

See now : How do you know if an address can be commercial?
Therefore, it needs to be strategic, as well as legal. It is important to use a location that conveys credibility to your work , and often our home address does not have this capacity.

Is it possible to open a company with a residential address?
It is possible to open a company with a residential address if you work as a service provider . This is because these professionals tend to work in different locations and, generally speaking, do not use a reception or have employees.

Generally, microentrepreneurs (MEIs) can use their residential address as their tax headquarters when opening their CNPJ, precisely because they are service providers. Some examples of roles that can follow this path are digital marketing specialists, personal trainers, among others.

Is it worth using your home address to open a company?
Although it is possible, it is not worth using your home address when opening your CNPJ. As the name suggests, the most viable option is to leave this location for your residence only.

Firstly, because you don't want to link your home address to your company's tax issues, running the risk of having to change all the documents in the event of a move .

Secondly, because it is not worth risking your privacy by using your home address as a business address. Have you ever thought about someone searching for your business to visit and find the place where you live? It can even be risky.

Economic and strategic alternative
If you cannot have a suitable physical space to register your company, the best option is to use a virtual office . This service provides a suitable address for company registration. In fact, for those who have a business but do not operate in person, it is possible to hire a virtual office with State Registration , an essential document for these activities.

This way, you can protect your personal address and ensure a privileged fiscal and commercial location for your business. Here at Company Hero, for example, we have virtual offices all over the country , in the main commercial regions.