Naturally, if you are starting a retail business or otherwise need office or warehouse space, your mailing address will likely be the same as your physical location. I'll talk more about that in another post (and there are lots of options to consider when choosing a physical location), so this post is mainly intended for "virtual companies" that don't have or require physical space. But even if you aren't virtual, unless you already have that space under lease, read on...
There are lots of examples these days of virtual companies. Most on-line/web-based businesses fall into this category, as do--almost by definition--all home-based businesses: independent consultants, service providers (think accountants, computer repair, electricians, and so on), and small groups of people working together from their respective homes (this is what many people think of as the "true definition of a virtual company").
As you will quickly discover as you go through the various steps in starting up your business, almost everything you do will require a mailing address (legal filings, securing a domain name, setting up a bank account, etc.), so getting one will be one of your first steps. There are really three primary options: 1) use your home address; 2) get a PO box at your local post office; or 3) get a box at a private mail receiving service. Note: As I alluded to above, if you need physical space and you already have that space under lease (or otherwise secured), that is certainly your fourth option.
Using your home address as your business address: My recommendation is to not do this, unless it is only temporary in the early stages of the startup process and you plan to secure a physical location. The list of reasons to not use your home address includes such things as security (you don't want customers showing up at your door at 3:00am on morning), external perception (home addresses often reflect negatively on the business), and just plain "separation" between your business and personal mail.
Using a PO box: This is an often-used solution to a business address and solves many of the issues inherent in using your home address, but it has some downsides. There is still a perception problem (yes, I know that lots of large companies use PO boxes, but they are already large companies, while you're trying to build up an image) and as a US Postal Service box, they can only send and receive US Postal mail. In other words, overnight shipping companies like FedEx and UPS won't deliver a package or overnight envelope to a PO box. To me, this reason alone takes this option off the table for most companies.
Using a private mail receiving service: These are similar to a PO box, but with a couple of distinct advantages. Available at locations across the country (many of them small local or regional companies),the two largest national providers of private mail services are UPS and MBE (which is also owned by UPS). Regardless of whether you choose a local, regional, or national provider, the benefits are virtually identical, as are the things to look for: a good address (with a little digging you can often find a convenient location that will let you use a "short" suite number at a business street address, instead of the typical "Suite 123-456" format, which is OK but not preferred), longevity (even the national brands are mostly franchises--find out how long the location you're considering has been there and how long the owners have been in business), and costs (with few exceptions I've seen, costs for a private mailbox is pretty consistent between providers and generally comparable with US Postal Service PO boxes). What the private providers offer that the post office can't is the ability to receive packages and overnight envelopes from any shipping company (and provide you with a convenient place to send mail as well as overnight shipments while you're there to pick up your mail). Also, depending on the location, the level of customer service is often a step up from what you can expect from the postal service, with such "fringe benefits" as being able to call in and see if a package has arrived. Bottom line, highly recommended!
There is an other "variant" of these private mailbox services that will receive and forward your mail to you (presumably at your home address). One such example is NYmail (and there are many others). They offer the same advantages as the retail outlets, often with a "prestigious" address, at similar monthly costs. Nothing wrong with this approach, but two negatives to consider: there is additional cost (because you pay for the postage/shipping to get the mail/packages from them to you) and it is somewhat less convenient (you have to wait for the "second leg" of the shipping or pay overnight shipping charges, rather than just stop by the local store to pick up your mail).
A closing note on "executive office space": I'll discuss executive offices in another post, but under the heading of "your business address", this is certainly an option to consider. If you're not familiar with these, they are usually nicely-appointed, full-service (i.e., voice mail, copy machines, receptionist, coffee service, conference room, etc.) offices where you rent a single office instead of a whole office suite, typically (at least, that's the idea) for much less than it would cost you to do all this on your own. Frankly, it's a great solution for an otherwise virtual company that needs to have a professional office environment to meet with clients (assuming that you wouldn't normally meet at the client's office); but make no mistake, you won't be fooling anyone into thinking the whole office is yours. In any case, if this arrangement is appealing to you, there's no reason you can't use that physical location as your mailing address (and a good example of using your home address for the bare minimum startup requirements, since you'll generally need to have your business filings and possibly a bank account in place before you can sign the executive office space lease), but also consider this: The cost of a private mailbox is very low; if you decide to change executive offices (most offer short lease options) or you decide the executive office ultimately isn't necessary, your business mailing address won't have to change.
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