travel agent llc

• Form an LLC
• Should I Start an LLC
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Last Updated: February 16, 2024, 1:52 pm by TRUiC Team

Should I Start an LLC for My Travel Agency?

Starting a limited liability company (LLC) for your travel agency can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a travel agency, lawsuits can arise from things like a customer’s trip being poorly planned, a customer suffering an injury while at your offices, and complaints that the agency intentionally selected more expensive options.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your travel agency seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Travel Agency?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Travel Agency

By starting an LLC for your travel agency, you can:

• Protect your savings, car, and house with limited liability protection
• Have more tax benefits and options
• Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Travel agencies will benefit from liability protection because of the risk of trademark infringement, financial data breaches, and even things like libel. 

Example 1: The airline you selected for a customer’s trip lost their baggage leading to them missing an important meeting. They are attempting to sue you over this. Since your agency is an LLC, your personal assets are protected with limited liability so they could not be taken in the settlement.

Example 2: While going over flight options in your office, a customer trips over a potted plant breaking their nose in the fall. They ask that you pay for the medical expenses. Your personal assets could not be used to pay for this since they are protected with limited liability.

Example 3: A customer is attempting to sue you after finding out their trip could have been cheaper, claiming your agency deliberately picked more expensive options. Should you be found in the wrong by the court, your personal assets would be protected due to limited liability as an LLC.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil .

LLC Tax Benefits and Options for a Travel Agency

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership . This means that the business's net income passes through to the owner's individual tax return. 

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform. 

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a travel agency owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Travel agencies rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for  small business loans ,  grants , and  credit .

Northwest will start an LLC for you for just $29 (plus state fees).

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

• You can   hire a professional LLC formation   service to set up your LLC for a small fee
• Or, you can choose your state from the list below to start an LLC yourself

Select Your State

• Alabama LLC
• Arizona LLC
• Arkansas LLC
• California LLC
• Colorado LLC
• Connecticut LLC
• Delaware LLC
• Florida LLC
• Georgia LLC
• Illinois LLC
• Indiana LLC
• Kentucky LLC
• Louisiana LLC
• Maryland LLC
• Massachusetts LLC
• Michigan LLC
• Minnesota LLC
• Mississippi LLC
• Missouri LLC
• Montana LLC
• Nebraska LLC
• New Hampshire LLC
• New Jersey LLC
• New Mexico LLC
• New York LLC
• North Carolina LLC
• North Dakota LLC
• Oklahoma LLC
• Pennsylvania LLC
• Rhode Island LLC
• South Carolina LLC
• South Dakota LLC
• Tennessee LLC
• Vermont LLC
• Virginia LLC
• Washington LLC
• Washington D.C. LLC
• West Virginia LLC
• Wisconsin LLC
• Wyoming LLC

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Common Situations Business Insurance May Cover for a Travel Agency

Example 1: Going up the steps to your office, a customer trips and fractures their ankle. General liability insurance could cover some or all of the medical expenses for that customer.

Example 2: Backing out of your parking spot after a long day, you fail to check your rear-view mirror and T-bone another car as it passes behind you. The other car’s driver-side door is crushed. The accident occurs on your business’ property, which means that general liability insurance would probably cover some amount of damage to the other driver’s car, as well as any medical payments for which a court found you liable.

Example 3: As you go over itinerary details with a customer in your office, her young child unplugs a computer monitor and pulls it off a desk and onto his head, causing injuries that require medical attention. If found liable, you could probably count on general liability insurance to cover medical expenses or any settlement reached.

Other Types of Coverage Travel Agencies Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all travel agencies should obtain.

Professional Liability Insurance

Travel agents don’t simply book flights and cruises. They can organize and book lodging, tourist activities, and more. A travel agent is not immune to error though. Scheduling errors, bad advice, or poor communication can result in negative customer experience.

While many trips are intended to be relaxing vacations, a travel agent can be found liable in the event that their advice or trip management results in damages to the customer. Keep your agency and your employees covered with professional liability insurance , which will cover workers who accidentally ruin business travelers’ trips or cause injury through poor advice.

Business Interruption Insurance

In the event that your storefront is destroyed or severely damaged, usually through forces like fire or tornadoes, business interruption insurance can help your travel agency get back on its feet. This policy covers estimated losses in revenue during a temporary period of commercial inactivity. Additionally, if your business requires a temporary relocation, this policy may cover the expenses accrued from the move. Business interruption insurance can keep your travel agency alive and kicking as it recovers from a major disaster.

Workers' Compensation Insurance

A growing company’s needs will include more agents to handle an increase in customers. Once you employ part-time or full-time workers, it is legally required to carry workers’ compensation insurance . These policies typically include disability and death benefits in the event that an employee is injured or killed at work.

Data Breach Insurance

Much of the modern travel agent’s work includes digital data entry, including customer itineraries, destinations, hotels, and debit or credit card info. In the event that your devices or network are breached, your business could be found liable and be required to compensate for customer losses of any kind.

Hackers and online scammers continue finding cleverer methods of digital theft, and data breach insurance can protect your company from damaging legal action.

Should I Start an LLC FAQ

Which is better for my travel agency — an llc or sole proprietorship.

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

What type of insurance does a travel agency need?

At a minimum, you’ll need general liability insurance .

Read our Travel Agency Business Insurance article for more info.

What are the costs to start and maintain a travel agency?

Some sources suggest you can pay a host agency $400 to $1,200 to get started from home. A host agency takes care of all the regulatory and back office requirements and splits the commission with you as the business owner.

To start your own independent agency may cost you between $1,000 and $10,000, depending on the markets you serve and your existing book of clients.

Visit our How to Start a Travel Agency guide to learn more about the costs of starting and maintaining this business.

What are the ongoing expenses of running a travel agency?

One of the main operating expenses for a travel agency is marketing costs. Rent can be an additional operating expense if your travel agency has an office.

Learn more about running a travel agency .

How do travel agencies make money?

Travel agencies make money by researching, planning, and booking travel itineraries for customers.

Learn more about starting a travel agency .

What is a travel agency and is it lucrative?

The travel industry has changed dramatically over the last few decades. Today, people are able to find almost all the information they need on the internet and even make their own bookings and reservations.

Despite this, there is still some demand for travel agencies. Some people don’t want to spend the time planning their own trips, while others want assistance organizing a specialized itinerary.

Small travel agencies make around $30,000 to $50,000 per year, but specializing in certain services could lead to more revenue.

Related Articles

ZenBusiness LLC Services Review

How Do I Pay Myself From My LLC?

How to Choose a Business Structure

Article sources.

IRS: Limited Liability Company

IRS: S Corporations

SBA: Small Business Guide

SBA: Choose a Business Structure Guide

US Census Bureau: Small Business Statistics

SBA Office of Advocacy: Data on Small Business

FRED: SBA Data for Small Business

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How to Start an LLC for Your Travel Agency

• March 9, 2023

If you’re starting a travel agency, or you already have one, you may be ready to form a limited liability company (LLC). LLCs offer many benefits including personal liability protection, pass-through taxation, and management flexibility.

If you’re currently running your travel agency as a sole proprietorship, the biggest drawback is that you do not have personal liability protection. If, for example, a client sues you due to an issue with their vacation, your personal assets are at risk. That’s why many travel agency owners choose to operate as an LLC. 

But how do you start an LLC? In this article, you’ll find a step-by-step guide to forming an LLC for your travel agency.

Sites like How to Start My LLC also offer many tips, including how to start an LLC for your travel agency in specific states.

Choose Your LLC Name

Your travel agency name is the identity of your business, so choose wisely. You want something unique and easy to remember but that also says what you do. Brainstorm some names and then ask your family and friends what they think. 

Be sure to check your state’s LLC name regulations to make sure your names comply. 

Once you have a few name options, you’ll need to make sure they’re available to use. Start by going to your state’s relevant website, usually the Secretary of State’s website, and do a search for the name. 

Then you’ll want to visit the U.S. Patent and Trademark Office website to find out if the name is trademarked nationally. 

Finally, you’ll need to find out if the domain name that you want is available. You can go to a site like GoDaddy to check. 

Most states will allow you to go ahead and reserve the name to make sure that no one else takes it before you get your LLC formed.

Select a Registered Agent

Nearly all states require that you have a registered agent for your LLC, which is a person or company authorized to accept official correspondence on behalf of your travel agency. You can be your own registered agent, but that requires you to be available during normal business hours at your registered address to accept correspondence in person.

To appoint someone else, you’ll first need to check your state’s registered agent requirements. Generally, a registered agent must be at least 18 years of age and have a physical address in the state, or be a company authorized to do business in the state. 

Many travel agency owners find it beneficial to hire a national registered agent service to act as their registered agent. They can ensure that you’re notified of important correspondence in a timely manner so that you can stay in compliance with any requirements of the state.

Choose a Management Structure

LLCs can be managed in two ways. They can be member-managed, meaning that all members, who are the owners of the LLC, will be involved in the day-to-day operations of the travel agency.

Alternatively, the LLC can be manager-managed, which means that not all members are involved in the management of the LLC and/or that an outside manager who is not a member will manage the LLC.

Some states require that you specify your management structure when you officially form your LLC with the state.

File Your LLC Document with Your State

In most states, the document you file to officially form your LLC is called the articles of organization, but in other states, it’s called a certificate of organization or a certificate of formation.

In almost all states, you can file this document online, usually on your Secretary of State’s website.

The information required on the document varies by state, but at the very least, it will require your travel agency’s LLC name and address and your registered agent’s information.

Some states also require member or manager names and addresses.

Fees for filing the document vary by state and range from $40 to $500. 

Create an Operating Agreement

A handful of states require that you have an operating agreement for your LLC, but most do not. However, it’s a very important document that defines the ownership percentages of the LLC, and how profits and losses are distributed, as well as the roles and responsibilities of the members or managers.

It also contains important provisions about how decisions are made, how member disputes are settled, and how ownership of the LLC can be transferred.

If you own your travel agency with partners, you can see how important it is to have this document in place. 

You can find operating agreement templates online or obtain one from an online service like ZenBusiness for a modest fee, but it’s often best to have an attorney’s help when drafting your operating agreement. You’ll want to ensure that all members’ interests are protected.

Choose Your Tax Status

One of the great things about an LLC is that you can choose how your LLC will be taxed. By default, if you are the sole member of the LLC, your travel agency is taxed as a sole proprietorship. This means that the business itself is not taxed. All profits or losses are passed through to you to be reported on your personal tax return. 

If your travel agency has multiple owners, the LLC is taxed as a partnership, which again, means the LLC is not taxed, and all profits and losses are passed through to the members based on their ownership percentages.

However, at some point, it may be beneficial for you to have your LLC taxed as an S-Corporation or a C-Corporation. The most common selection is an S-Corporation, which still offers pass-through taxation. The advantage of an S-Corp status is that profits from the LLC are not subject to self-employment taxes. 

If your LLC is taxed as a sole proprietorship or partnership, on the other hand, profits are subject to self-employment taxes.

S-Corp status, however, requires that managing members be paid a salary, which brings added administrative costs. Generally, this means that an S-Corp status will only be beneficial when your travel agency reaches a level of income that makes the self-employment tax savings higher than the additional administrative costs.

The decision on tax status is best made with the help of your tax advisor.

Apply for an EIN

Finally, you’ll need to obtain an Employer Identification Number (EIN) for your LLC. You’re required to have one if your travel agency has employees or if your LLC has more than one member. The EIN allows the IRS to identify your business for tax purposes. 

You can easily apply for an EIN for free on the IRS website . 

Starting an LLC for your travel agency has many benefits, most importantly, the personal liability protection that it offers. Forming an LLC with your state is not difficult, but be sure to follow all the steps so that you don’t run into any issues that could affect the success of your travel agency. If you need help, consult with your attorney and tax advisor so that you get your business off on the right foot. 

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Business Structure 101 for Independent Travel Agents and Entrepreneurs

As a new entrepreneur and independent travel agent, you need to register your business. However, before you get started, you have to figure out how you want to structure it. There are many different options so it can be hard to figure out what is best for you and your business.

Different Ways to Structure Your Business

Before you register your business, you need to decide what type of business you are going to have. Your options include:

Sole proprietor

Corporation

Partnership

Limited liability company, otherwise known as an LLC

So, how can you choose? It is going to depend on the type of business you have, as well as your assets and the liability risk that you face.

Reasons to start a sole proprietorship

Here are some reasons why you may want to start a sole proprietorship:

Easy to get started. Starting a sole proprietorship is really easy. You can use your own name and Social Security number to get started. You can use this information to get the permits and licenses that you need to start your business.

You alone are in charge of your business. When you are a sole proprietor, you can decide how you want to run your business. You can choose the jobs that you want to take and pass on the ones that aren't going to be worth it.

And you get the income that comes with it. When you are a sole proprietor, you get all of the income that you make (after paying taxes). You don't have to split your income with anyone else. 

Reasons to start a corporation

Here are some reasons why you may want to start a corporation:

Credibility. As soon as your business becomes a corporation, you gain credibility. People are more likely to work with businesses that are a corporation than those that are not.

Best way to get financing. If you are going to need help financing your business, you may need to start a corporation. You can sell non-voting shares, which allows you to raise money, without giving over control to everyone who helps you. You also can sell stock to help raise money when needed.

Have different types of owners. When you start a corporation, you can have silent partners, who will help with financing (and get a part of the profit), as well as partners who can help you run your business.  

Ability to offer benefits for employees. Corporations are able to offer benefits for their employees, such as health insurance, and deduct it as an expense. LLCs and other businesses aren't able to do so.  

Reasons to start a partnership

Here are some reasons why you may want to start a partnership:

Started privately, between partners. It is easy to set up a partnership because it is formed with an agreement between the partners. You won't have to register your business partnership with the state.

The partnership is not taxed. Instead, partners are taxed individually on their personal tax returns, depending on their actual profits and losses that they occur from the business. You won't be required to create a tax return for the business.

Easy to end the partnership. Just like it is easy to get started, it is easy to dissolve a partnership. As long as one partner is ready to stop, the partnership can change or dissolve, depending on what everyone wants.

Reasons to start an LLC

Here are some reasons why you may want to start a limited liability corporation:

Cheaper than forming a corporation. It is much cheaper to start an LLC than a corporation and it still gives you plenty of the same benefits.

Liability protection. If you have a business that has plenty of risk, you may want to start an LLC in order to protect your personal assets. You won't be held liable for any debts and losses that your company incurs.

You are still in control of your business. You are able to control your business, the way that you want while protecting yourself legally.

More official. Many believe that having an LLC behind your business name can make your business seem more official. People may be more likely to work with you because your business looks more legitimate or serious.

 So, How Do You Decide Which Will Work Best for Your Business?

The best way to decide how to structure your business is to talk to a professional. An accountant will be able to discuss your business ideas so that you can see what your different options are. They will help you figure out what will work best so that you know you are doing it correctly.

Your tax professional will also be able to help you throughout the entire process of registering your business so that it is protected fully.

How to Register Your Business

Once you decide how you want to register your business, it is time to do so. Here are some tips to help you get started.

Register your business name. If you aren't operating under your own name (and using your Social Security number), you are going to need to file a DBA. This stands for doing business as.

Then, you need to register with the IRS. You will receive an Employer Identification Number (EIN), which you will use like a Social Security number for your business. You need it in order to file your taxes for your business.

After that is done, you will need to register your business with the state and local agencies.

Make sure that you have the necessary licenses and permits that you will need. The U.S. Small Business Administration has a website so you can easily find out what permits and licenses that you may need.

Once you have gone through all of the steps above, it is time to get started! You can open your doors and start making money. You are on your way to running a successful business and working for yourself. If you’ve already been working as a solopreneur for a while, it’s never too late to meet with a tax professional and decide how to register your business.

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Do I Need an LLC for My Travel Agency Business?

If you’re considering launching a travel agency business, setting up an LLC is a great first step. Establishing an LLC provides many benefits, such as personal asset protection, tax flexibility, and more. Ready to get started? In this article, we’ll show you how to set up an LLC for your travel agency business in just five easy steps.

Get worry-free services and support to launch your business starting at $0 plus state fees.

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7 Steps to Setting up an LLC for your Travel Agency Business:)

1. pick a name for your travel agency llc..

When naming your Airbnb LLC, it is important to consider the potential impact it could have on your business. Your name should be catchy and memorable, while still accurately representing the services that you provide, whether that’s rental properties or travel experiences. Consider the following tips when making a decision:

• Research the competition - Look at the names of other Airbnb businesses to get an idea of what is already out there. Are there any words or phrases that you find especially appealing?
• Be unique - Aim for a name that isn’t already in use, either online or in real life. A good rule of thumb is to make sure there aren’t any other companies with the same name.
• Think of a memorable phrase - If you’re having trouble coming up with something new and fresh, look for different adjectives and nouns to get your creative juices flowing.
• Stay relevant - Your name should be rooted in the concept of travel and hospitality, which can easily be accomplished by including keywords such as “lodging”, “vacation” or “rooms''.

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2. Choose a Registered Agent For Your Travel Agency LLC.

Picking out the right registered agent for your travel agency LLC is an important decision. It's important to find a dependable registered agent to be the face of your business, and to make sure all the legal paperwork is completed and filed correctly. Here are some tips that can help you in selecting your Registered Agent:

• Do research and contact different registered agents who specialize in the travel industry. Ask about their experience, customer service, and knowledge.
• Look for a registered agent who offers additional services such as document filing, trademark and copyright management, business formation services, and more.
• Check the customer reviews of each potential registered agent to determine whether they are dependable, trustworthy, and knowledgeable.
• Be sure to compare their fees when making your decision - it'll be best to find an affordable yet high-quality service.

3. File Your Travel Agency LLC Certificate of Organization.

Starting a travel agency business requires taking several steps to register with the appropriate governing organizations and prepare for getting up and running. The Certificate of Organization is an essential document that must be filed with the state to start a business. To file your Certificate of Organization for your travel agency business, here are the steps:

• Contact your Secretary of State’s office to get an application.
• Fill in the information required including the name and address of your travel agency.
• Include any agreements or arrangements made between owners.
• Include payment amount and method. The fee varies by state, so check with your specific state office.
• Submit your completed application along with any necessary fees or documents to the Secretary of State’s office.
• Once you've filed, you will receive an official Certificate of Organization for your travel agency business.

4. Draft Your Travel Agency LLC Operating Agreement.

Creating an operating agreement for a travel agency business is an essential step to set up your business and ensure the success of the venture. Creating an effective operating agreement requires you to take into account the different factors that might come into play for a travel agency business. These include selection of staff and management, marketing and advertising strategies, fees, financial concerns, and customer care policies. The following bullet points provide an outline of what an effective travel agency operational agreement should include:

• Define the roles and responsibilities of partners or investors in the travel agency business.
• Establish policies on hiring, salaries, and bonuses for employees.
• Set forth procedures for budgeting decisions regarding acquisition of assets, marketing efforts, and customer service.
• Specify procedures on how profits will be divided among partners or shareholders.
• Outline procedures on how business decisions will be made by partners or shareholders.
• Set forth applicable laws and regulations that must be followed by the travel agency business.
• Define any applicable taxes that need to be paid by the business.

5. Grab Your Travel Agency LLC EIN.

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is essential for starting a travel agency business. It is used to identify a business entity and is required for opening bank accounts, filing taxes, and other business-related activities. Obtaining an EIN is simple, free, and can be done in minutes.

• Gather the necessary documents: You will need to provide your legal business name, mailing address, contact person or officer of the business, identifying information (social security number or individual taxpayer identification number), and contact information (e-mail address and telephone number).
• Submit your application: You can obtain your EIN online through the IRS website or by mail by filling out Form SS-4.
• Wait for confirmation: Once you have submitted the necessary documents, it will take up to 5 business days for the IRS to process your application.
• Keep all documents: After receiving your EIN, be sure to keep all related documents in a safe place for future reference.

Frequently Asked Questions:

Is it legally required to have an llc for your travel agency business, what are the tax benefits for having an llc for your travel agency business.

Having an LLC for your travel agency business has a number of tax benefits, the most significant being liability protection. An LLC is a limited liability company, which means that it protects your personal assets from any legal claims against the business. It also allows you to pass through income and losses directly to you as the owner, which eliminates the need for double taxation. Furthermore, as an LLC your travel agency can also take advantage of certain tax deductions that are unavailable to other business structures. Some of these are outlined below.

• Tax Deduction: You can deduct employer-paid health insurance premiums, which can reduce your total tax burden.
• Personality Taxation: As an LLC, any profits earned from your travel agency are subject to only one layer of taxation rather than two, which can lead to significant savings.
• Flexible Deductions: Expenses related to advertising, website development and marketing expenses for your travel agency business can be deducted from your taxable income when filing with an LLC.
• Loss Protection: Any losses incurred by your travel agency can be used to offset other income from other sources such as investments or wages.
• Retirement Planning: An LLC can set itself up with a variety of different retirement options such as Simplified Employee Pension “SEP” plans or Solo 401(K) plans that provide tax benefits.

What Does it Cost to Form an LLC For Your travel agency Business?

What liability risks do travel agency businesses face, additional resources for starting an travel agencybusiness:.

Starting a travel agency business can be a rewarding and exciting venture, but it requires careful planning and the right resources to get off the ground. Fortunately, there are numerous helpful resources available today that can assist entrepreneurs in setting up their businesses. Here are some of the top resources for those looking to launch their own travel agency:

• Travel Agency Resources : Websites like TheTravelBiz.com provide helpful starter guides specifically designed for new travel agents looking to get their business off the ground, covering topics such as getting an IATA (International Air Transport Association) card, setting up a website, marketing strategies, and more.
• Government Resources : The Small Business Administration provides a wealth of information and resources related to starting a travel agency business. They offer details on government regulations, calculating projected costs and setting up an online presence.
• Industry Associations : Joining industry associations such as ASTA (American Society of Travel Agents) provides access to invaluable contacts within the travel industry. ASTA also offers career assistance tools and educational programs geared toward travel agents.
• Loan Options : Many banks offer specialized financing for entrepreneurs setting up a new travel agency business. It is important to research different loan options before making a decision in order to ensure that the loan structure and terms are suitable for your needs.

Other LLCs Your Can Start:

Yoga Studio

Vending Machine

Window Washing

Window Tinting

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

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10 Steps to Starting a Travel Agency from Home

If you're thinking of starting a travel agency from home, you're in luck. The cost to become a travel agent is relatively low and there are plenty of opportunities for someone with the passion to sell travel. Not only that, but starting a travel agency from home is becoming the most popular route to become a travel agent .

"Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors." -Phocuswright

According to Phocuswright's US Travel Agency Landscape 2023 , "Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors."

Want to throw your hat into the ring and start your own travel agency? We'll walk you through the steps you need to take to start a travel agency from home. Starting any business is no walk in a park, but it certainly helps if you have someone to advise you and lay out a path. We're here to help support you and answer your questions as you start out on your new entrepreneurial journey!

One quick note: If you use a host agency , it will make the process of starting a travel agency waaaaay easier (especially if you're a total newbie!). Roughly 95% of new advisors coming into the industry go through a host agency.

10 Steps to Starting Your Travel Agency From Home

Here's a summary of the steps to start your travel agency from home. If you've already completed some of the steps, you can click on the link to shortcut which step is best for you!

• Find your travel agency niche: Finding a travel agency niche is a great way to hone in on what about travel you're most passionate about. If you develop a niche, you'll be building your travel agency business on a strong foundation of your strengths, interests, and personal networks. Not only that, it will help you give direction as you start (and grow) your agency!
• Choose your travel agency name: This is often a step advisors struggle with, but don't skip it! Travel vendors need a travel agency name for their records. Make sure you have one ready so you can start selling travel.
• Choose a Travel Agency Business Structure: Most new-to-industry advisors will be choosing between a sole proprietorship or a Limited Liability Corporation (LLC). It's a matter of balancing host requirements (if you go with one), business protections, your agency model, and your budget.
• Create a Travel Agency Business Plan: A travel agency business plan is a document that will help you cat herd all your amazing ideas for your business. It helps you define your mission and goals, helping you think through the process on how to get there. Best yet? We have a free 15-page travel agency business plan template you can use!
• Register Your Travel Agency with the State + Feds : This is a critical step so to legitimize your travel agency. You can register your LLC through the Small Business Administration (SBA) resource to find the steps to get registered with your specific state. This will enable you to do other fun steps like starting a business bank account.
• Get an FEIN : This is optional but recommended, here's why: It's free to get an FEIN, takes just a few minutes and if you move to a business structure that requires an FEIN in the future it will save you a few steps!
• Set Up Your Travel Agency Financials : Separating your business bank account from your personal account is required if you set up an LLC. But frankly, we recommend setting up business financials regardless of your agency model.
• Choose Between a Host Agency, Travel Franchise, or Your Own Accreditation: There are a lot of choices in which direction to go with your travel agency. Do you have your own vendor relationships and want to get your own travel accreditation? Do you want to partner with a host agency under your own brand so you take advantage of their aggregate sales volume? Do you want a turnkey agency option with a franchise? This will help you choose.
• Check Out Host Agency Reviews' Resources Page : Our resources page gives you tips on how to optimize our site to help start your travel agency from home.
• Sign Up for 7 Day Setup Accelerator Course: Within each of these steps, there are many many many other steps to starting a travel agency from home. (Yes, just like nesting dolls.) Our course gives you the tools and knowledge you need to go from the seed of an idea to hanging the shingle out for your travel agency!
• Bonus: Read up on what you can expect in terms of income potential as well as time and financial investment.

I know. It can be totally overwhelming. But if you're starting a travel agency from home, these steps will help prepare you to feel 10,000% (no those extra zeros are NOT typos!) more confident. What are the preliminary steps you need to take when starting a travel agency? Funny you should ask . . .

Here are the steps to take to start your travel agency from home:

1. Find a Travel Agency Niche

A niche is your friend. When you start your home-based travel agency, a niche will help you establish your brand, create your travel agency name, and allow you to focus your energies. Starting a travel agency without a niche is like traveling without a compass (or, let's be honest, a smartphone). Are you going to be focusing on a destination? Maybe you'll be like Andres Zuleta, who specializes in Japan tours:

Or maybe you'll focus on a type of travel, like Deb Fogarty, who specializes in cruising:

Or maybe you're like Will Medina and have a love for destination weddings and honeymoons:

Or maybe you're more attracted to the corporate world and aim to book travel for corporations like Karen Hurlbut:

Whatever your niche, it's the first problem to solve when you're starting your travel agency! We have a free brainstorming exercise to help you find niches that you're passionate about.

2. Choose Your Travel Agency's Name

Vendors will need a travel agency name for their records so have one ready before you start selling travel.

Whether you go with a host agency or choose to go independent, you're going to need a name for our agency. The vendors (hotels, cruise lines, airlines, etc) will need a travel agency name for their records so have one ready before you can start selling travel. Having a niche already picked out can help you as you decide on your travel agency's name .

Starting your travel agency (from home or otherwise) is a lot of work. The last thing you want as your travel agency opens its doors is a letter saying you've infringed on someone else's trademark! We help you through the things you need to consider when choosing a name for your agency. Are their any competitor's with similar names that will make it harder for you to pull up at the top of the search engines? Are the URLs available? Are their any copyrights? Is it too long to neatly fit on marketing materials? We go through this and a whole lot more, so dig in!

3. Choose a Travel Agency Business Structure

You can change your business structure as your needs evolve.

A base step in starting your travel agency from home is deciding on a business structure. There's a lot that goes into what is the best fit for you. Do you have personal assets like a house or car that you want to make sure are protected? How much money do you want to spend?

We help you understand the different business structure options for your new travel agency : Sole proprietor, partnership, LLC, S Corp.

As you're starting your travel agency, you may feel like the low cost of a sole proprietor makes the most sense for you. It's important to know that you can change your business structure as your needs evolve.

As your business grows and you're making more bookings (which exposes you to more liability), you can always move to a structure that gives you more personal liability protection, like the LLC. While it's more expensive, and may not be feasible for everyone as they're starting their travel agency, the protection it offers to your personal assets is incredibly important as your business grows.

And what the heck is an S Corp anyhow? Don't worry, we'll give you the scoop and let you know when that should be a consideration for you.

4. Create Your Travel Agency Business Plan

Next step in starting your travel agency? A business plan!

While a travel agency business plan isn't technically required to start an agency, it is something I highly recommend. I didn't write a business plan when I started this site but I also knew online marketing, SEO, and the travel industry front and back. I also had the industry connections to make it work. Most people starting a travel agency from home either don't have experience in starting a company or they don't have experience in travel. This is where a business plan can help.

What a business plan does for you is it forces you to think through each different area of your business and come up with a plan. Will you stick to that plan 100%? Definitely not. But it gives you something to refer back to and helps you organize your thoughts. Plan to take a chunk of time to work on it as it's not something you want to do willy-nilly.

Not only that, but we made it really easy with our free 15-page travel agency business plan ! All you need to do is download our template and adapt it to your agency.

While I didn't write a business plan for Host Agency Reviews, I did write a VERY detailed travel agency business plan for you. :) It's completely filled out with a fictitious travel agency. That's helpful because you can use some of the data and ideas in there on your travel agency's business plan.

Here's a peek of the business plan. Just to note, this version is not editable! If you want a copy of the business plan, please fill out this form and we'll drop it in an email!

That was good stuff, right? So let’s get started on the business plan for your travel agency. We’ll start by having you download the travel agency business plan template (an editable version of the one you just looked at above).

5. Register Your Travel Agency with the State ... and Feds!

You're doing great! Starting a travel agency from home isn't as tough as you thought, is it? When you have a road map, it's easier much easier to navigate the start-up process.

Registering with the State

Ok, now that you've nailed down your niche, come up with your name, and settled on a business structure. The next step is letting the state government know you've got a company. The Small Business Administration (SBA) website shows   how to register your company's name by state . If you are an LLC, the SBA also has a state-by-state guide on how to register your LLC .

A word of warning: When doing a DBS, your businesses, even though they have different names are still legally considered the same entity.

Registering your company with the state is an important step because you will need this proof to open a business bank account and other random things (running FB business ads, getting a loan) as your business grows. Do yourself a favor and when those certificates come in, keep them handy in a file for your company's legal documents.

When you start your travel agency, you may have registered it as Margarita Travel. But over time, that might change. Let's say you fell into becoming the local destination wedding expert that everyone turned to. Margarita Travel works, but you want to have a more romantic name for those clients and different branding. So you create a new brand, Beach Romance, that specializes in destination weddings. Do you need to let the state know about this new company, even though it's really your same company? Yuppers.

You'll need to file a DBA with the state. DBA is an acronym for "Doing Business As." It's also sometimes referred to as a fictitious name, trade name, or assumed name. Your DBA is essentially saying, 'My formal company is Margarita Travel, but I also go by Beach Romance.'

To help you get a feel for the pros/cons of a dual-brand, listen to Andrey Zakahrenko's story of how his agency evolved into two brands: (This was our first ever podcast so please forgive the horrible sound quality!)

The one thing to know about DBAs is that they don't create a separate entity, it allows you to legally operate under different names. A word of warning: When doing a DBA, your businesses, even though they have different names are still legally considered the same entity. That means if someone sues Beach Romance for a honeymoon gone wrong, Margarita Travel is also being sued since it's the same company.

Registering with the Financial Crimes enforcement network

And can we talk about the Feds for a moment? They're doing their part to cut down on money laundering. (Score!) And... since money laundering happens through businesses, you're going to have to do a little paperwork with them. (Boo!)

You'll fill out the Beneficial Ownership Information (BOI) form to make sure you're on the up and up. :) Don't worry, it's not too painful despite the fact the they name of the entity you're sounds like they're going to send a SWAT team into your home at any moment.

6. Get an FEIN (Optional, but Recommended)

A Federal Employer Identification Number (FEIN) is like a social security number for your company. It's a number to identify your business. Technically, you do not need an FEIN if you're a sole proprietor or a single-member LLC with no employees since you can use your social security number to file taxes.

However, I personally prefer not to give out my social security number if I don't have to. I also like to get my pencils lined up from the get-go. It's free to get an FEIN , takes just a few minutes and, if you move to a business structure that requires an FEIN, you won't have to worry about changing out your SS# for an FEIN on legal documents or other places that require a business identification number.

In general, I would recommend getting an EIN when starting a travel agency. Also, make sure to check in with your tax professional when it's tax filing time—for certain business structures, you may still file under your SS# even though you have an FEIN. Confusing, I know. That's why you go to the professionals! 😊

7. Set Up Your Travel Agency Financials  

Like the FEIN, when starting a travel agency, you don't need a separate business bank account or credit card if you're a sole proprietor, but you'll have wished you'd had set one up come tax time! Separating your personal bank account from the business account from the start makes accounting easier and will help you keep track of business expense write-offs.

Wondering what travel expenses you can write off as a travel advisor ? We've got a resource for that too. :)

Important to note: If you choose a business structure that offers personal liability protection, like an LLC, you need to keep your business and personal money separate. If you are mixing finances and paying personal bills out of your business account, or vice versa, that opens you up to personal liability.

The argument is that, yes, when you started your travel agency you chose an LLC structure, which protects your personal assets. BUT, clearly, the business and the owner are not separate entities because the owner is making business payments out of their personal bank account (or vice versa). And if you're one and the same, then your personal assets are also the business's assets.

There's a lot to consider when it comes to travel agency financials and getting the foundations laid. Don't worry, we walk you through all things having to do with your travel agency's financials : what to consider when choosing your bank, the documents you need to have ready for the bank, what business credit cards are best, and the most common software travel agencies use for their bookkeeping, and how to find a bookkeeper for your agency.

8. Decide if a Host Agency Is for Your Travel Agency

We mentioned host agencies at the very beginning of the article. And maybe you noticed the name of our site. We're big fans of host agencies for people starting a travel agency . . .but it's not for every agency out there.

Your next step is going to take a lot of research. You need to decide if you want to go with a host agency, franchise, or go independent.

How do you know if you should go with a host agency, travel agency franchise , or if you should be independent and get your own accreditation ? How do you decide which travel consortia to join if you are independent? How do you choose a host agency when there are 200+ listed on the site ?

Don't you worry, little bird, it's easy to feel overwhelmed, but we have answers to all these questions.

To start, check out our article, " The Top 10 Benefits of Using a Host Agency . " If you read that and decide a host agency is a good fit for you, you'll move on to our article on choosing a host agency and take a look at our best host agencies of 2024 .

Oh, and we've got a great tool for you to help narrow down your list of host agencies and/or travel franchises in our choosing a host agency article. It's a nifty spreadsheet to help you narrow down your top picks ! 😊

9. Read our Home-Based Travel Agent Resources Page  

We put together a page with loads of links so you don't have to scour the web. Here she be, the Home-Based Travel Agent Resources page. 😊

Not only that, connecting with host agencies, travel franchises and consortia couldn't be easier! You can go directly to a host's profile to write them via Host Agency Reviews' Q&A feature. The beauty of this is that tons of agents will also get to learn from your question too!

10. Sign up for HAR's 7 Day Setup Accelerator Course

Phew. That was list was a little overwhelming, wasn't it?

The fact is that there's a lot of groundwork that needs to take place in order to start a travel agency.  Wouldn't it be nice if someone with tons of experience who's helped over 10,000 agency startups could walk you through the setup? We've got an option for that too! It's called our 7 Day Setup Accelerator course .

But don't take our word for it. Hear from some of our students on the value of a supportive community and access to the HAR team:

The course is written and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It includes nine chapters with 70+ instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts. Check out HAR's 7DS Accelerator course below!!

As you can see, there are lots of things to do as you start a travel agency from home. But we're here to offer you a TON of resources and support.

So take a deep breath and we'll do it step-by-step together! Once you start your travel agency from home, you'll have lots of other things that will demand your attention so laying the proper groundwork as soon as you can is smart business. 

Starting a Travel Agency from Home: What to Expect Time-Wise

In general, it will take a few years to get your agency off the ground.  This is the case with any entrepreneurial endeavor. We've found that it typically takes about 3 years to really start generating a sustainable income.

Here's the reason it can take a while to start seeing the cash flow (especially when you're starting a travel agency from home):

• It takes a while to build a client base and develop your brand
• Even when you do make your first bookings, you're not paid commission until after your client completes their travel (or after final payment for some vendors). So, if you make seven bookings in January but the clients aren't traveling until November, you can see how your first-year money might be tight.
• Travel is something most people only do 1-2 times a year. Even with referrals and repeat clients, it can take a lot longer to build a steady business compared to a new restaurant or other service industries. 

Starting a Travel Agency from Home: What to Expect Money-Wise

And money. You probably want to know what you can expect when it comes to money and starting that travel agency from home, huh?! 😊I hate to admit it but there is no one set answer. It depends on soooo many factors. The good news is that we were so curious to answer this question that we asked a few hundred new travel agents about their income in the first years of starting a travel agency.

It just so happens we have some hard data on travel agent income and start up costs in first 5 years of business!

That data on starting a travel agency is great. But our data doesn't stop there. We have a huge variety of data that looks at a travel agent's income—from every angle.

Even more travel agent income data

Want to dig into travel agent income data even more? Here's a great reading list that will give you an idea of what you might expect to earn when starting a travel agency: 

The travel industry opens possibilities of traveling to beautiful places to help you do your job better. It's important to understand that you still have to (*ahem*) work if you're a travel advisor—you just get to have a lot more fun doing it than most people (yay)! 

Questions? Ask Away.

I grew up in the travel industry and have I've worked with thousands of agents looking to start a travel agency. It's totally my jam. And it's not just my jam. The entire HAR team is here to help you start (and grow) a successful travel agency. Ask us questions in the comments, drop us a line via email, or reach out to us on social. We love helping bring new people into our amazing industry! 🤗

Editor's Note: This article was originally published in July 2021! We updated this resource and republished it on publish date above.

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

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