Starting a travel consulting business in College Station, TX: which licenses and registrations do I need?

Anthony wrote: “I run a travel agency through a host agency as an independent contractor. All taxes for all products are paid by the vendor.”

Hi Anthony, congratulations on Lonestar Travel Planners! Planning a family's first trip abroad or a couple's honeymoon means trading in excitement, and the beach selfies clients send back are a lovely bonus. In this answer you will find the business structure, the tax registrations, and the local and industry licenses for Lonestar Travel Planners, plus a short recap at the end.

Texas doesn't require a travel agent license, and working under a host agency means your host usually holds the seller-of-travel registrations needed in states like California and Florida. The vendors handle hotel and booking taxes, but your commissions are income, so set aside money for federal income and self-employment taxes. Texas doesn't tax travel commissions, so you won't need a sales tax permit for this work. A DBA lets you work under Lonestar Travel Planners, and an EIN keeps your Social Security number off host paperwork. Errors and omissions insurance is worth asking your host about.

What Lonestar Travel Planners needs

1. LLC (business structure) – Forming an LLC puts a legal wall between the business and your personal assets. A missed passport or visa requirement that strands a traveler could bring a lawsuit, and the company, not you as a private person, would be the defendant.
2. Texas assumed name certificate – If you operate as a sole proprietor, or under a name different from your LLC's exact legal name, registering "Lonestar Travel Planners" lets you use it on signs, invoices, and your business bank account.
3. EIN (federal tax ID number) – You plan on 1 employee, so the federal tax ID number (EIN) is required for payroll, and you will also use it for the business bank account and supplier accounts.
4. Texas employer ID – With 1 employee, you need a state employer account number for unemployment insurance. Texas has no state income tax on wages, so there is no withholding account to open, which is one less form to file.
5. Business license – Most places require a local business license to operate, including home-based businesses. Check the rules where Lonestar Travel Planners will operate in College Station, and ask about home occupation and zoning rules if you work from home. Home occupation rules commonly cap client visits and delivery trucks on a residential street, so read them before you print business cards.
6. Seller of travel registration – A handful of states, including California, Florida, Washington, and Hawaii, require travel sellers to register, and some host agencies handle this for you.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a travel consulting business it is NAICS 561510 (Travel Agencies). With 1 employee planned, you are already creating jobs in College Station. That makes 6 items on your list.

Tip: Recommend travel insurance in writing on every booking and keep a record when clients decline it.

To recap: Lonestar Travel Planners in College Station, TX needs an LLC, a DBA, an EIN, a state employer ID, a business license, and seller of travel registration. Handle these early and the business starts on solid ground.

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