According to Anolik Law Group, there are thirteen states that have specific laws if you wish to be a seller of travel. Those states are: California, Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Virginia, and Washington state.
Of those states, five require registration/licensure if you wish to become a seller of travel. Those states are:
We created step-by-step tutorials for each of the above states. View step-by-step tutorials later in the article. For general information, the below guide will help.
How to get a Seller of Travel License
Step #1: Determine if you need to get licensed
If you are located in any of the five states which require registration (California, Florida, Hawaii, Iowa, or Washington) or if you plan to sell/arrange travel in those states, you will need to get licensed.
Travel includes land, air, or water travel.
But, be careful that you are not exempt from getting licensed. Here is a great article on when independent contractors with a host agency are exempt from seller of travel laws.
Still not sure if you need a travel agent license? Check out this post "Do You Need a Travel Agent License?" from Host Agency Reviews.
Step #2: Follow the steps to get licensed
Each state will vary. California is the trickiest of states to get licensed in. For step-by-step tutorials on how to get licensed, click the link below:
You can find your seller of travel license application and paperwork on your state’s licensing department (usually the Justice Department or Department of Consumer Affairs).
Step #3: Get bonded, if necessary
Depending on your state guidelines, you might need to get a Seller of Travel Bond before you can get licensed.
A Seller of Travel Bond is a type of surety bond. Unlike insurance which protects you, a surety bond protects your customers.
How does a Seller of Travel Bond Work?
Should you fail to serve your clients in an ethical and honest manner, they can make a claim against your surety bond.
If the claim is determined to be valid, the surety company who issued your bond will remind you of your obligations and ask you to fulfill the claim. If you fail to fulfill the claim, the surety company will step in and financially compensate your client. You are responsible for repaying the surety company every penny they pay out.
Essentially, the surety bond holds you liable for your actions. If you are a solid business owner, and no one makes a claim on your bond, then the bond never comes into play.
How much does a Seller of Travel Bond Cost?
The great thing about getting a surety bond is the cost is minimal compared to other financial options. You only pay a small premium to get your Seller of Travel Bond.
Get a free quote below.
Step #4: Submit application and paperwork
Submit your seller of travel license application, required paperwork, necessary Seller of Travel Bond, and any other requirements to your state licensing agency.
For questions on how to get licensed, you can call your state licensing agency.
After getting licensed, to remain in compliance with the law, you will need to renew your license when necessary. Generally, seller of travel licenses are valid for one year, beginning the day your certificate is issued.