Understanding where a business is located and operates can influence multiple decisions in the business entity diligence process. Moreover, addresses are not static and may change over time. As such, compliance, underwriting, or financial decisions often require a holistic picture of a business entity's historical physical presence.
In addition to location, the type of address is a critical signal for those conducting diligence. For example, home-based business owners face privacy and safety issues when using their home address as their physical business address and often opt instead to use a P.O. Box as their entity's registered address.
Other addresses commonly tied to a business can be:
- Virtual office space: Virtual office spaces or virtual business addresses sell professional-looking mailing addresses to businesses not operating at the location.
- Mailbox services: Businesses can rent a mailbox like those offered at The UPS Store or Mail Boxes Etc.
- Coworking space: Much like virtual office space, coworking spaces provide businesses with a professional mailing address to use for your business.
How Middesk helps with Addresses
Addresses can be an important part of verifying the legitimacy of a business.
For example, if you are a payment processor and you are evaluating the risk profile of a business, it is important to know what address this business is operating out of and the actual details of that address. It may be a red flag to see hundreds of thousands of dollars being processed in payments from a residential address.
When running a Business report, Middesk retrieves address information from bona fide sources such as the IRS, Secretary of State, and other regulatory bodies that require address filings. At the same time, Middesk flags other details about retrieved addresses, including whether the address is a commercial or residential location, if the address is a virtual or mailbox location, and if the address is deliverable or not.
While addresses have a number of data points that are relevant, we will always summarize the address information as follows:
|Success||Match identified to the submitted Office Address||Verified|
|Warning||Identified an address within 0.2 miles of the submitted Office Address||Approximate Match|
|Failure||Unable to identify a match to the submitted Office Address||Unverified|
|Success||Submitted Office Address is a Commercial property||Commercial|
|Warning||Submitted Office Address is a Residential property||Residential|
|Success||The USPS is able to deliver mail to the submitted Office Address||Deliverable|
|Failure||The USPS is unable to deliver mail to the submitted Office Address||Undeliverable|
For more information about Addresses, see our reference or reach out to [email protected]
Updated over 3 years ago