Start an Online Travel Agency or Tour Company for US Travellers

Americans travel abroad in huge numbers, and many of them book their trips with companies in the country they are visiting. A family planning Rajasthan books a private tour with a company in Jaipur. A couple hiking to Machu Picchu books with an operator in Cusco. An Indian-American family books flights home for Diwali through an agency that specialises in their route. US travel agencies send their bookings to back offices in India and the Philippines to issue tickets and handle changes.

You can run all of these from your home country. A US company helps American travellers trust you, lets you take card payments in dollars with lower fees, and gives you a US bank account for supplier payments and refunds.

Travel is more regulated than most remote businesses. Several states require sellers of travel to register, airline ticketing needs accreditation or a partner, card processors treat travel as high risk, and price advertising rules are strict. This guide explains how to set up without visiting the USA, and how to handle each of those rules.

In short: A non-resident can form a US LLC or C-Corporation without visiting, get an EIN without an SSN or ITIN, and open a US business bank account remotely. A tour company running trips in its own country earns mostly foreign-source income, so a foreign-owned single-member LLC usually owes no US federal income tax, but files Form 5472 every year. Selling to customers in California, Florida, Washington or Hawaii can require seller of travel registration. Selling airline tickets needs IATA or ARC accreditation, or a host agency or consolidator. Expect card processors to ask for reserves, and follow all-in price advertising rules. Selling travel insurance usually requires a licence or an insurer partner.

Travel business models you can run from abroad

Model	What you sell	How you earn	Difficulty
Inbound tour operator / DMC	Tours, guides, hotels and transport in your own country	Package price with your margin	Moderate
Specialist travel agency	Trips to a region you know, booked with local suppliers	Margin or commission	Moderate
Diaspora flight agency	Flights for US communities to their home countries	Ticket margins, service fees	Harder: needs ticketing access
Travel back office	Ticketing, changes, refunds and support for US agencies	Per FTE or per transaction	Easier: B2B services
Online booking site	Hotels, activities and flights through booking APIs	Commission or margin	Harder: technology and scale
Travel content and affiliate site	Guides with affiliate links to booking platforms	Affiliate commission	Easiest

For most founders abroad, the strongest model is the inbound tour operator: you know the country, the suppliers and the language, and Americans pay well for a reliable local company.

Can you start a travel company in the USA without visiting?

Yes:

Form the LLC or corporation online through a registered agent
Get the EIN without an SSN or ITIN with Form SS-4
Open a US business bank account without visiting
Apply for card processing in the company's name
Register as a seller of travel in the states that require it, online

Expect four to eight weeks for the company, EIN and bank account, and longer for travel-friendly card processing and state registrations. See opening a US company without visiting, EIN for non-residents and the US business bank account guide. Banks ask more questions of travel businesses because of customer deposits and refunds; a clear website with your tours, supplier relationships and terms helps. See why banks reject non-resident applications.

US LLC or C-Corp?

US LLC formation for a tour operator

A single-member LLC suits a tour operator or DMC whose services happen abroad. Tours, guiding and arrangements in your country are services performed outside the USA, so the income is generally foreign-source, and the LLC usually owes no US federal income tax if it has no US office or US staff. It files Form 5472 with a pro forma 1120 every year ($25,000 penalty if missed). See Form 5472 explained.

A Wyoming LLC with EIN is $249, or $348 with a bank account, then $121 a year.

US C-Corp formation for an online travel agency

A C-Corporation (21% federal tax) is often a better fit for:

an agency selling US domestic travel, or travel booked and serviced by US-based staff
an online booking platform planning to raise money
businesses where much of the income is US-source, such as commissions for arranging travel from the USA

See LLC vs Inc and effectively connected income. A Delaware corporation with EIN is $358, then $578 a year.

Seller of travel laws

A few US states regulate companies that sell travel to their residents, to protect customers' money if the company fails. The main ones:

California: sellers of travel must register with the state, maintain a trust account or bond for customer payments, contribute to or disclose the state's restitution fund status, and print the registration number in advertising. The law covers sellers outside California selling to people in California
Florida: sellers of travel must register with the state consumer services department and, in most cases, post a bond. It applies to sellers offering travel to Florida residents
Washington: sellers of travel must register and follow rules on customer trust accounts
Hawaii: sellers of travel must register and keep customer money in a client trust account

There are exemptions, for example for some sellers dealing only with businesses, or for airlines and hotels selling their own services. Check each state's current rules before you advertise to its residents. Many tour operators register in all four, because California and Florida are large markets for international travel.

Even where no registration is needed, keep customer deposits separate from operating money. If a hotel or airline fails, or you do, customer funds are what regulators and courts look at.

Selling airline tickets

You can't issue airline tickets just by forming a company. The options:

IATA accreditation in your home country, if you are a traditional agency there already
ARC accreditation for US agencies, which has its own financial and location requirements
A host agency: you join a larger accredited agency, book under its credentials and share commission. This is how most new agencies start
A consolidator: you buy discounted fares from a wholesaler who issues tickets for you. Common for diaspora routes
Booking APIs: some platforms let you sell flights where they act as the ticketing agent

US DOT rules apply to sellers of air travel: advertised fares must show the full price including taxes and mandatory fees, refund rules for cancelled and significantly changed flights apply, and ticket agents must disclose key terms before purchase.

Card payments and chargebacks

Card processors treat travel as high risk: customers pay months before they travel, and if the trip goes wrong they dispute the charge. Expect:

rolling reserves, where the processor holds part of your money for months
delayed payouts until travel is completed
requests for supplier contracts, refund policies and financial statements

Some mainstream processors restrict travel merchants, so apply early and be honest about your model. Specialist travel payment providers and invoicing by ACH or wire for large bookings reduce card exposure. A clear cancellation and refund policy, signed or accepted at booking, is your best defence against chargebacks. See Stripe for non-residents and receiving payments from US clients.

Price advertising and consumer rules

All-in pricing for lodging: the FTC's rule on unfair fees, in force since 2025, requires the total price for hotels and short-term rentals to be shown upfront, including mandatory fees. Resort fees can't be hidden
Airfares: DOT full-fare rules, above
Tour packages: list what's included and not included, single supplements, and any local taxes or park fees
Reviews: fake reviews and undisclosed paid reviews are banned under the FTC's rule on reviews
Accessibility claims: describe accessibility accurately; don't promise what local suppliers can't deliver
Sanctions: US companies must not sell travel involving countries or people under US sanctions

Travel insurance

Travel insurance is insurance. In most US states, selling, soliciting or negotiating it requires a licence. Many states offer a limited lines travel insurance licence for travel retailers working under a licensed supervising insurer or agency. A simpler route for many foreign operators is an affiliate or referral arrangement with a licensed insurer, where the customer buys directly from the insurer and you don't discuss coverage. Don't bundle insurance into your price or advise on it without the right licence.

Your team and suppliers abroad

Guides, drivers and staff are employed or contracted by your local company in your home country, which invoices the US company under an intercompany service agreement, reported on Form 5472
Hotels, transport and activity suppliers are paid from your local company or the US account; keep contracts and invoices for each booking
Local licences: most countries require tour operators to be registered with the tourism ministry. US customers and processors may ask for proof
Liability insurance in your country for tours and transport

Indian owners must follow the ODI rules; see ODI and FEMA rules. Paying freelance guides and partners abroad from the US company is covered in paying contractors abroad.

Sales tax and hotel taxes

Tours performed abroad don't attract US sales tax. If you sell US hotels or activities under a merchant model (you set the price and collect payment), some states and cities apply hotel occupancy tax to the full amount the customer pays, including your margin. If you sell US domestic travel, get state tax advice early. See state taxes for a foreign-owned LLC.

Examples

These examples are illustrative.

Arjun, Jaipur: private tours of Rajasthan. Arjun's company runs private tours for American families. A Wyoming LLC takes deposits by card and final payments by ACH, keeps deposits in a separate account, and is registered as a seller of travel in California and Florida. The Indian company employs the guides and drivers and pays hotels. The tours are performed in India, so the LLC files Form 5472 and owes no US federal income tax.

Lucía, Cusco: treks and Machu Picchu packages. Lucía sells treks to US hikers. The first card processor held 30% of payments for six months, so Lucía moved to a travel-specialist processor and asks larger groups to pay by wire. Travel insurance is offered through a link to a licensed insurer, with no advice given by Lucía's staff.

Rahul, Ahmedabad: back office for US agencies. Rahul's team issues tickets, processes changes and handles refunds for 12 US travel agencies, using each agency's own accreditation. The US LLC bills per agent per month. Because the agencies hold the customer relationships, Rahul doesn't need seller of travel registration.

Selin, Istanbul: Turkey tour booking site. Selin built a booking platform for tours and Cappadocia balloon flights, raised money from US investors and formed a Delaware C-Corporation. Prices on the site include all mandatory fees, and the corporation files Form 1120.

Common mistakes

Advertising to California or Florida customers without seller of travel registration.
Mixing customer deposits with operating money.
Trying to issue flights without accreditation, a host agency or a consolidator.
Choosing a card processor that bans travel, then losing the account.
Hiding resort fees or taxes in advertised prices.
Selling travel insurance without a licence.
Forgetting Form 5472 because the LLC owes no US income tax.

Frequently asked questions

Can I start a travel agency for American customers from abroad without visiting? Yes. The company, EIN and US bank account are set up remotely. Seller of travel registrations are also done online.

Do I need an SSN or ITIN for the EIN? No. Foreign owners apply with Form SS-4.

Do I need a licence to sell tours to Americans? There is no federal travel agency licence, but California, Florida, Washington and Hawaii require seller of travel registration in many cases, and your home country may license tour operators.

Can my US company sell airline tickets? Only with IATA or ARC accreditation, or through a host agency, consolidator or booking partner that issues the tickets.

Will my US LLC pay US tax on tour sales? Usually not, if the tours take place abroad and there is no US office or staff. It still files Form 5472.

How UCB can help

We form US LLCs and C-Corporations for tour operators and travel agencies outside the USA, get the EIN without an SSN, and help open a US business bank account without visiting, through our formation, EIN and bank account package. Each year we prepare Form 5472 with the pro forma 1120, Form 1120 or Form 1065, through our US tax filing service. We do not handle seller of travel registrations, accreditation, insurance licensing or legal advice.

Starting a travel or tour company for American customers? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.

This article is general information for non-resident business owners and is not legal or tax advice. Rules and fees change; contact us to confirm what applies to your situation.

How to Start an Online Travel Agency or Tour Company Selling to Americans from Abroad (2026), Without Visiting: US LLC or C-Corp, EIN Without an SSN, Bank Account, Seller of Travel Registration, Airline Ticketing, Card Payments, Price Advertising Rules and Travel Insurance