A virtual office is one that appears to be in a bricks-and-mortar building but in reality is a telephone number and a web site. Someone once coined the advertising slogan, "On the web, nobody knows that you are really a dog." Therefore, an individual can appear to be a large business by using a phone service that offers advanced features. For example, the caller might be greeted with a menu that says, "For Sales, press 1; for Accounts, press 2" and so on. They all reach the same person!
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My virtual office service is supplied by RingCentral, based in San Mateo, CA. What makes their offering better is that you get more than "just a phone number". It is also your fax number and cell phone number. You give out just one number to your contacts. I use my toll-free number mainly as an an answering service and I get all my messages as attachments to email.