How To Register As A Travel Agent

When starting up a travel agency, you have several things to consider -- a proper name, a niche, and how to observe clients. Ane 24-hour interval, it dawns on you, do you need a travel agent license? Is at that place even such a matter as a travel agent license? How exercise yous get one?

Here's the quick answer to your question: Depending on what state you live in — or if you sell to residents who live in states seller of travel (SOT) requirements — the answer is aye, you lot may demand one.

Trying to navigate seller of travel laws is like a bureaucratic fun house! The skilful news for you is that HAR went into the deepest darkest reaches of this funhouse and we fabricated information technology out on the other side. We're here to tell you, in laymen's terms, how to become the travel agency licensing y'all need.

What Is a Travel Amanuensis License (in the United States)?

A travel agent license in the Us boils down to this, a seller of travel (SOT) license. The SOT amounts to authorities red tape and the attached fees required to annals and legally operate your travel agency. It has nothing to do with training or testing of your travel agent noesis. You fill out some forms, pay a fee, and get a seller of travel number.

Let's start with the practiced news: On the national/federal level, a seller of travel license is not required. The US government isn't looking to cash in on travel agencies through registration/licensing fees. Phew!

The travel agent license thing changes a bit when it comes to the state level. While this may sound like a bummer, at that place'southward more than good news . . . very few states (just four) have travel agent licensing requirements.

In the U.s., there are four states that have Seller of Travel Laws, Hawaii, Washington, Florida, and California.

When we talk virtually The Large Four SOT States ® , we're talking about California (CA), Florida (FL), Hawaii (HI), and Washington (WA). (Annotation: Don't you remember a fake trademark is necessary on such a catchy term? Looks fashion more professional.) Click below if yous want to fast-forrard to a specific state!

ane. California Seller of Travel

2. Florida Seller of Travel

iii. Washington Seller of Travel

four. Hawaii Seller of Travel

5. Other states with travel bureau Regulations

How do yous know if you need an SOT for these states? If I had to summarize this entire in two sentences it would get like this: If your agency is based in OR yous take clients in CA, FL, WA, or HI you will demand an SOT for those corresponding states.

If this isn't y'all, then congratulations! You lot're dismissed from HAR'due south travel bureau license course. If you are ane of the lucky advisors who operate in or sell to clients in HI, WA, FL, or CA and so congratulations to you too, considering y'all're almost to sound really knowledgeable at travel events when someone asks you about SOT.

We'll start by taking a high-level look at things with our infographic, and and so we'll start diving deeper into the nuances and intricacies at the state level. I want to warn you that it may seem overwhelming. Simply don't worry. You only need to focus on the requirements in states that use to you. Plus, one time you lot figure out what you need and apply for your travel agency license, you lot're skilful to go.

A Visually Pleasing Way to Look at Seller of Travel Laws

Hither's a visual rundown of The Large 4 SOT States ®. Nosotros whipped upwards this neat infographic for you. It breaks down cost and complicated info into an piece of cake-to-read visual. If you want to shortcut to a state, just click on the land you want in the infographic.

Yous do take to enter your e-mail to see the infographic, but I promise, it's worth it :). It's only a less overwhelming way to expect at things.

Four States that take Travel Agency Licenses / Registrations

The thing to know about The Large 4 SOT States® is that they aren't just independent to state lines. If you live in New York simply you're booking a client that lives in ane of The Big Four SOT States®, guess what? Y'all're expected to comply with the Large Four laws.

The SOT for California, Florida, Hawaii, ~~Iowa~~ and Washington use to any bureau that does business with residents of those states. — Daniel Zim

Here's a great explanation from Daniel Zim, travel attorney¹:

"The SOT for California, Florida, Hawaii, ~~Iowa~~ and Washington apply to any agency that does business with residents of those states. They are extraterritorial laws pregnant that the law extends far beyond the borders of the country. The business does not have to reside in the regulating land, the business organization could reside anywhere in the world but it would have to comply with California, Florida, Hawaii, Iowa and Washington."

Wondering where your friend Iowa is on this list? IA repealed their seller of travel registration in June 2020.

California Travel Agency License: Do Y'all Need One & How to Use

Allow'south starting time with the doozie. California. California Seller of Travel requirements are ones to pay attention to since they've gone after agencies that don't have an SOT. Considering they're one of the Big Four SOT States® if your travel bureau is located in California or you lot book clients who reside in California, you may demand a travel bureau license/ seller of travel number in California.

There were a few SOT law updates made by California in Jan 2017. The changes had two major impacts:

one. California amped upwards enforcement on business regulations.

This means that not simply do agencies need to comply with CA's SOT travel regulation, but they also need to comply with CAbusiness regulations. In short, it ways that if you need a CA SOT license, you as well need to annals for a CA state business ID. If you don't live in CA, yous'll make full out the 'foreign entity' (out-of-state or out-of-country) form for your respective business structure.

2. California seller of travel exemptions

I know, increased regulations make your eyes glaze over. BUT, these regulations come with good tidings if you're a (relatively) pocket-size businesses.

If you encounter all of the exemptions below, yous practice not need your own travel agency license/seller of travel number in California!

1. Your business model is: Sole Proprietor, unmarried-member LLC, or single-shareholder S Corp.

2. You lot take a written contract with a host agency (that has a CA SOT).

3. Yous are selling through your host, with your host's accreditation number.

iv. You lot utilise your host's accreditation for all bookings (no booking direct and bypassing the host).

5. All fees (consultation/service fees) must be processed through the host agency.

half-dozen. Clients must pay host or supplier directly. (No taking greenbacks. Checks would demand to be made out to the host agency.)

7. You lot must disclose to every sale that yous vest to a host, including the host's proper name, accost, phone number and registration number.

3. Steps to use for a California Seller of travel

Bummer if you authorize for exemption. But this will jumpstart your procedure. Here's the steps to employ for CST:

1. Register for Travel Consumer Restitution Corporation:

If you need to employ for your own California Seller of Travel (CST), you first demand to shell out $275 and register your agency with the Travel Consumer Restitution Corporation. Who needs this? According to the CA dept. of justice (DOJ), "A registered seller of travel whose primary identify of business concern is in California and who does business with persons in California must participate in the TCRC."

Of grade, to go on information technology interesting, there are exemptions to TCRC:

Applicant does non do business or annunciate to persons located in California, including by internet advertisement; but has a location in California.
Applicant's principal place of concern is outside California.
Bidder has no location or agent in California.
Applicant is neither an issuer nor a subsidiary of an issuer of securities that are listed on a national securities exchange or designated equally a national marketplace system security.

2. Establish a Trust Account:

If you employ for a CST, you will need to establish a trust account for any direct payments from clients. Of grade, there are alternatives for you lot rebels. Hither they are:

Credit Card Transactions: If yous merely have credit card payments and you don't have access to clients funds, this is a great alternative to a trust. Do you qualify? Cheque out this California Seller of Travel affidavit form.
Acquire a Surety Bail
Include a Consumer Deposit protection plan

3. Apply for your CST :

Once you're registered through the TCRF, yous apply for your CST. Yous can continue and apply for your CST by filling out this class.

4. Renew annually:

You lot'll demand to renew your CST every year. Renewal is a choose your ain adventure situation. Here'due south your two paths:

In that location have been no changes in your agency: Congrats! This is the easy road. If all your agency info is the same when yous previously practical, all you need to do is fill out this attestation grade.
At that place have been changes: This is the thornier path, but all yous have to do is read these instructions then fill up out this renewal form.

5. Hurry up and await!

It's confusing. Don't exist afraid to contact their office for description.

E-mail: Sellers.Travel@doj.ca.gov
Phone: (213) 897-8065

State of California Seller of Travel Certificate of Registration

How to Utilise for a Florida Travel Agency License

Since Florida is a member of our Big 4 SOT States®, we know that Florida's travel agency license/ Seller of Travel police force applies to any travel agency who books clients residing in Florida, regardless of the agency's location, right? [In unison: "Yes, Steph."]

Yous're doing so great!

If you lot know you lot need a Florida SOT number, the cost is $300/yr. Is there an exception? Of class, there is! If you're an ARC accredited agency for three+ years under the same ownership, then you tin file for an exemption.

And for all you lot active duty military, honorably discharged veterans, war machine spouses or surviving spouses (cheers for your service!), y'all may be eligible for a waiver of the registration/renewal fees (see department ii(c) for requirements). Here'southward the armed forces fee waiver request course.

Beyond the $300, travel agencies too demand to provide a $25,000 Surety Bond. But good news! For those of you with a clean runway record, you can too make full out a Security Reduction Application which would bring the bond amount downwardly to $10k-20k, depending on your sales. And if you lot've got a clean record and 5 or more years of operating in the land of Florida, you can file for a complete waiver of the bond requirement (waiver form is in the registration/renewal application).

Now, let's add another layer. If you're an independent contractor with a host agency, tin that contained contractor use the host'southward seller of travel number?

If you meet ALL of the exemptions beneath, you can use your host agencies Florida travel agency license / Seller of Travel number, but you must fill out the Independent Amanuensis Argument of Exemption Form ($50/yr):

Yous must be with a host agency that has a FL Seller of Travel number; AND
Have a written contract with the seller(s) of travel listed higher up (you'll provide them a copy of the contract); AND
You do not accept fees (service/consultation/etc), commission, or other valuable consideration directly from your clients (they must become through your host agency); AND
You do not accept unused ticket stock in your possession; AND
Y'all do not have the ability to upshot tickets, lodging or vacation certificates, or any other travel documents.

Notes on the Hawaii Travel Agency License

Again, Hawaii is i of our Big Four SOT States® and so if you're working with clients who live in Hawaii—fifty-fifty if your agency isn't in Hawaii—yous'll need a Hawaii travel bureau license/ seller of travel number.

There's a few key points to know about Hawaii'south travel agency licensing:

Similar to the CA SOT laws, regardless of where you live, you'll demand to register your concern in Hawaii if you are an LLC, LLP, Corporation, or Partnership. (Out of state agencies volition register equally a foreign entity.) Here'due south the current concern registration fee schedule.
If you're selling stand up-solitary activities to your clients, you technically also demand an Action Desk license.
And this last ane is the well-nigh challenging. Travel agencies need to have a business bank business relationship with a banking concern located in Hawaii. Stay tuned on that one though, considering nosotros've got a workaround below

One of our awesome Hawaii-based readers gave us the scoop on Hawaii's travel agency licensing/ seller of travel laws—thank you for your sleuthing, Mara Kunkel! In addition to registering for a seller of travel license, Hawaii has regulations well-nigh opening a customer trust account. Simply thanks to Mara'south sleuthing, nosotros've learned that Hawaii agents who desire to go with a mainland host can employ for a waiver, assuming the amanuensis is non handling any of the clients' coin—no cash, no checks—directly.

Hawaii agents with mainland hosts can qualify for a trust account waiver just if they do not handle client monies. Like to CA, all customer coin needs to become through the supplier or the host agency. If this is up your aisle, you can include that data in a letter request for a trust account waiver along with your application for Hawaii's SOT.

The Hawaii travel agency license costs $215/yr on the fifty-fifty-numbered years and $146/yr on the odd-numbered years. (Hawaii likes to keep you on your toes!)

Notes on the Washington Travel Bureau License

When it comes to Washington's travel agency license/ seller of travel laws, it'southward going to sound awfully familiar. Of class, nosotros take the start with the same base equally the other Large Iv SOT States®—you'll need the license not only if your agency is in Washington state, merely if you serve clients who live there.

Since (nearly) ICs sell travel nether their own brand, they volition have to get their own Washington travel bureau license.

And similar Hawaii and California, Washington wants to know who owns your agency so they crave proof of concern registration. But unlike Hawaii and California, if your bureau is located outside Washington country, you lot can ship proof of business registration in your home state. Hurray for pocket-size victories!

And here's a new twist: If y'all concord payments for travel for more than 5 days, yous'll demand to practise 1 of iii things:

Open up a Seller of Travel trust account (business account) at a bank in Washington state.
Buy a Surety Bond (the size of the bond is based on the previous year'south sales).
Be a member of expert standing in a professional association canonical past the Department of Licensing, through which you get both a $1,000,000 errors and omissions policy and a surety bail of at least $250,000. What associations offer that, I honestly have no idea...

If the IC meets the following criteria, they can apply the host's Washington travel agency license number ²:

The host bureau has a Washington Seller of Travel number and has the IC is registered under their number.; and
The IC is conducting business using the proper name of the host agency; and
No money goes through the independent contractor. All money is collected in the name of the host agency and is processed by the host agency (no collecting cash, no checks fabricated out to your bureau, service/consultation fees would need to exist charged under the host bureau's name).

ZI'm going to be frank and say that information technology's unlikely an IC can use their host's WA SOT. Why? Considering in order to use a host's SOT the advisor needs to be selling nether the name of the host agency. This opens pandora's box of independent contractor classification. Only long story short is that advisors will be selling travel under their own brand, not the host's.

The bottom line on the host/IC state of affairs? Since (almost) hosted advisors sell travel under their ain brand, they will accept to get their own Washington travel bureau license.

Program on the Washington seller of travel licensing setting y'all back $202/yr.

Other States with Travel Agency Regulations

The Big Four SOT States® are the ones everyone volition always say have Seller of Travel (SOT) laws/travel agency licensing but there's a few I establish I think should too exist mentioned:

Delaware: If you're a travel agency in Delaware (scroll to No. 24), you lot are required to register for an occupational license. The price is currently $225 USD. Information technology'southward a bit different than the state travel agency licensing laws to a higher place because you only need it if yous open a travel agency in Delaware (vs. needing information technology if you plan to sell to whatsoever Delaware residents).
Illinois: Surprise! If your bureau is based in Illinois, you lot may need to found a trust account in order to attach to the Illinois Travel Promotion Consumer Protection. Our insider source (Ann Thomson Nelson in the comments) mentioned this requirement only pertains to agents taking payments from clients, rather than paying the supplier directly. Even then, at that place are exemptions if you a.) accept the equivalent of 1M liability coverage through Errors and Omissions Insurance, and b.) have a surety bond of $100,000 or more.
Louisiana: This state is occasionally mentioned by industry attorneys, and thanks to our spies on the footing (aka: Alec in the comments) we now understand that Louisiana requires an almanac licensing fee for retail travel agencies (storefronts). Are you lot a home-based agency in Louisiana? You're in the articulate! What'due south the price? It depends on your gross sales. So check out this resource on Louisiana travel agency licensing fees to see where you lot fall. (Shout to Alec Mena for sharing this resource!)
Massachusetts: In MA, you can't just sell travel willy nilly without doing your due diligence. What do I mean by due diligence? If you're a travel bureau based in MA, make certain y'all're familiar with the nitty-gritty. Past nitty-gritty, I hateful department 15:07 of MA's 940 CMR.
New York: NY also has hard and fast laws for sellers of travel. I'd like to say they're common sense, and that so long every bit you're non a jerk, you lot're okay, but yous know what, I'm going to become ahead and resist that temptation. Instead, if you're an NY-based agent, go read NY's Article ten-A Truth in Travel Act. Specially, look at this affiliate, Section 157-A for a very specific outline of disclosures you must provide for your travel clients.

This is not an exhaustive list. Rather, it's a crash course in states that have regulations that may directly impact travel advisors. If you're a tour operator, or participate in travel gild sales, chances are that since y'all're selling travel, you'll need a seller of travel license and the requirements and awarding process may exist a fiddling different.

Local/City Travel Agent Licensing

In the offset, we said there is no travel agency licensing laws on the national level. And then nosotros zoomed in on the state level, where nosotros had The Big Four SOT States® (Florida, California, Washington, Hawaii) with the seller of travel/ travel agency licensing laws. At present permit's talk about things on the metropolis level.

Breaking downward regulations to the city level is complex. The local level is going to involve some enquiry on your end. What you'll want to do is familiarize yourself with local laws that affect travel agencies. A skilful start is to ask your local Chamber of Commerce if there are whatever full general business concern regulations in your city that you should be aware of.

If y'all don't know where to start to find out more well-nigh local laws, contact your Bedroom of Commerce or visit our resources page to detect your local SBA or SCORE function.

Did We Mention Travel Insurance Licensing... and Waivers?

Yeah. We have more than info on regulations for yous. Boring, confusing, and frustrating... but very of import. Find out more on travel insurance licensing for agencies.

Most travel agencies have a travel waiver for their clients. See what other agencies are including in their travel waivers and download a gratis travel waiver sample and an Oversea Travel Tips & Checklist.

Save Coin a Travel Agent License with a Host Bureau

Since the site focuses on host agencies, it's of import to mention another host agency do good—saving the expense of a travel agency license. In some states, y'all tin can utilize your host's Seller of Travel number instead of purchasing your own!

For example, in Florida, contained contractors that are exempt don't have to pay the total $300 annual registration fee. Agents with a host tin go nether their host's Florida Seller of Travel number and pay but $l/twelvemonth - a savings of $250. 😊 And now hosted agents that meet CA'southward criteria for exemption can sell under their host agency's California Seller of Travel number — a savings of $100/year.

Cheque with your host bureau or the country'due south seller of travel office for details. On our main page, y'all can filter hosts according to which seller of travel they provide. If you're interested in finding a host bureau, visit our host agency list and reviews.

In Endmost

It'south difficult to find info on a travel agent license. Try googling 'Iowa Seller of Travel'. Trust me, it's non easy to find the right page! I wrote this commodity to save agents time and money. If it helped yous out, please drop usa a line in the comments or share the article—doing so makes it easier for others to find this folio.

Editor's note 9/10/2015: Nevada did have a seller of travel law... and then they kept suspending information technology for what felt similar forever (ahem, 6 years). And in July 2015, Nevada'south Seller of Travel Law is officially repealed and Nevada travel agents practise non need a license to sell travel.

Editor's note 01/28/2021: Iowa repealed their Seller of Travel requirements as of 06/2020 so is no longer included in this article.

Editor'southward note 02/16/22: This article was originally published in December. 2012 and was updated and republished with the most current information at the post appointment listed above.

Sad, we need an obligatory disclaimer. I am not an attorney (but here are some travel attorneys!). I aggregated this info from first-hand experience and other industry sources to create a resource for those looking into a travel agent license. All info is accurate to my knowledge but data given should be fact-checked and never exist considered legal advice. ↩
5(a-b)https://app.leg.wa.gov/RCW/default.aspx?cite=nineteen.138.100 ↩