Yes, it is very possible to register your LLC using a co-working space address. In the United States, an LLC registered office address is expected to be a permanent address and not a temporary one and thus entails that the co-working space is expected to own the said premises, which is usually rare because they are most often leased.
But if the co-working space owns the property, then by reaching an agreement, you can use the co-working office address as your LLC office address. In recent times, this has become a good option for entrepreneurs who are just starting.
Aside from serving as their registered office address, it also allows them to rent a desk in a shared office space. This is not only cheaper than a commercial office, it also lets entrepreneurs meet and collaborate. In most co-working spaces, you can either rent just a single seat or a table if you have employees.
A good number of co-working spaces these days also make available other amenities that will help their spaces to be very comfortable and conducive to work in. For instance, a good number of spaces have stocked pantries, lounges, kitchens, and even showers.
Even if you register or run your LLC out of a co-working space, you will still be expected to comply with the same rules and regulations as physical businesses. For example, you’ll be expected to at least obtain a general business license for your company.
Documents Needed to Register LLC Using a Co-working Space Address
If you decide to use your co-working space as your registered office, then the following documents will have to be made available;
The Rental Agreement
A copy of the rental agreement is very much needed, and it will have to be executed between the owner of the property and the owner of the company. Also, remember that a co-working space agreement is not the same as a rental agreement necessary for registration.
A Non-Objection Certificate from the owner
A Non-Objection Certificate (NOC) is another very crucial document you need from the legal owner of the property/co-working space. This document permits you to use such property as a registered office. Note that this document will have to be signed, dated, and attached in Form 18.
A Utility Bill From The Past Two Months
Utility bills are usually in the name of the owner of the building and it can be very challenging to obtain a utility bill in your name when you register a co-working space as your registered office. The names on the utility bill will have to match the name of the owner and these bills are also required in opening a bank account and availing of other official services.
Things to Look for in a Good Co-working Space
Have it in mind that the demand for co-working spaces has heightened in recent years. Unique office spaces are popping up all over the place to see to the varying needs of remote workers, freelancers, and entrepreneurs. With numerous options now available, it can be daunting to know where to start. Nonetheless, here are things to look out for before choosing a co-working space.
Have it in mind that location should be your utmost priority when choosing the ideal co-working space. The location will influence the time and money you spend on transportation. If you do most of your work remotely, your primary objective should be to choose a location that is easily accessible for you.
If you have to visit clients regularly, you should also put the location of your clients into consideration too. You would not want to spend hours in transit each day, therefore consider this extensively.
The ideal co-working space for your business should have all major amenities that one expects from his/her workplace. Note that well-established workspaces can come in a wide range of prices, so compare your options based on what you need to run your business and feel comfortable.
Below are some of the basics a co-working space should provide as a part of the package:
- Heating and A/C
- Power backup
The Type Of Space
Co-working spaces tend to offer three types of desks in their facilities: hot desks/fixed desks/cabin space. Hot desks work on a first-come-first-served basis. With this “method”, you can use any available workstation in the facility. Fixed desks are reserved desks that are yours and this means that you are the only one to use them.
Note that among these options, the hot desk (also called flexible desk) will be the cheapest, and can be an ideal option for freelancers. However, it would entail packing up your desk at the end of every day, and this can be counterproductive and tiring.
You can consider the fixed desk plan that allocates your own dedicated desk customized to your comforts and work needs. But if your work involves extensively interacting with clients, or storing and handling a large volume of confidential information, then a more expensive option in private spaces could be more suitable.
A lot of investments are involved in starting a new business. Therefore, it is always advisable you keep your expenses down to the minimum. Even if you have an established clientele – and/or stable business – spending too much on your office space is not the ideal option.
Owing to that, always endeavor to choose an appropriate co-working space that fits your budget. Note that your monthly rent becoming a liability is the last thing you want to experience as a new business.
To select the most suitable co-working space, it is necessary to understand how flexible the place is in terms of timing and future expansion. Note that your workspace should be available to use during your work timings and the off-days that you choose to work on.
A good number of co-working facilities tend to keep their workspaces open round the clock, but stop operating some services or facilities such as the front desk and cafeteria after normal work hours.
Nonetheless, it is always recommended you ask for information about special hours, and if the hours are based on the plan you choose. In addition, a co-working space should accommodate your space expansion and downsize with little or no time wastage.
According to experts, smaller co-working spaces tend to be more accommodating, especially if the space is managed by the owner. But aside from the management team, a trial period is another way to get a feel of the space before you commit.
When choosing a co-working space to build your business with, consider smaller co-working spaces – or at least not international big brands. Large corporations tend to have very strict rules and protocols you are expected to follow. This leads to an endless nightmare whenever you ask for anything that is not exactly as inscribed in their Terms & Conditions.
Have it in mind that smaller co-working spaces, although generally more “clumsy” in some ways, tend to be much more comprehensive and understanding. This is most often true for spaces where the owner works from or manages it in person.
Instead of registering their businesses with their home addresses or securing permanent office space, a good number of young businesses prefer to leverage a co-working space address for their LLC. Note that using a co-working space address during registration can be very beneficial for you and your business.
It helps to solve the problem of real estate while resources are shared for a fair cost. This advantage in co-working spaces over other office types has propelled industry growth in the past few years.