Texas does not require a travel agent license. There is no state-level “Seller of Travel” statute, no occupational permit to apply for, and no bond or trust account that travel professionals must post to work in the state. What you do need is the same business setup any Texas enterprise handles: a registered business name, a sales tax permit, a federal tax ID, and, depending on how you plan to operate, industry accreditations and compliance with federal airfare and consumer protection rules.
Five states — California, Florida, Hawaii, Iowa, and Washington — enforce Seller of Travel registration laws. Texas is not one of them. Your legal obligations here flow from general business and tax law, plus a few federal rules specific to selling air travel.
Register Your Business Name
If you plan to operate under anything other than your legal name, Texas Business and Commerce Code Chapter 71 requires an Assumed Name Certificate, usually called a DBA.1State of Texas. Texas Business and Commerce Code BUS COM 71.052 – Contents of Certificate
Where you file depends on your structure. Unincorporated businesses — sole proprietors and general partnerships — file with the county clerk where the business operates. Corporations, LLCs, and limited partnerships file with the Texas Secretary of State through the SOSDirect portal. The Secretary of State charges $25 per certificate.2Texas Secretary of State. Name Filings FAQs County fees sit in a similar range; Travis County, for example, charges $23 for a single-owner filing. A certificate can be filed for up to ten years before renewal.
Get a Texas Sales and Use Tax Permit
Any business selling taxable goods or services in Texas needs a Sales and Use Tax Permit from the Comptroller of Public Accounts. Travel agents who charge service fees or sell taxable travel-related products fall within this. The application is free and runs through the Comptroller’s eSystems portal.3Texas Comptroller of Public Accounts. Texas Online Tax Registration Application
You will need your Social Security number (or EIN if you already have one), your business address, and your NAICS code. For travel agencies, that code is 561510.4U.S. Census Bureau. NAICS 561510 Travel Agencies The physical permit arrives by mail two to three weeks after you submit.3Texas Comptroller of Public Accounts. Texas Online Tax Registration Application
Get a Federal Employer Identification Number
An EIN from the IRS is your business’s federal tax ID. You need one to hire employees, operate as a partnership or corporation, or open a business bank account, which most banks require. Sole proprietors benefit too, because an EIN keeps your Social Security number off vendor paperwork.
The online application is free, takes about ten minutes, and the IRS issues your number immediately. You can print the confirmation letter on the spot.5Internal Revenue Service. Get an Employer Identification Number Keep that letter with your records; banks and suppliers ask for it.
Decide Between a Host Agency and Going Independent
This choice determines whether you need to pursue industry accreditations yourself, and it shapes your startup costs more than any other decision.
Under a Host Agency
A host agency provides the infrastructure a new agent typically lacks: supplier contracts, booking technology, industry accreditations, and compliance management. You book under the host’s ARC, IATA, or CLIA numbers, and the host handles the financial processing. Commissions are split, often in a 70/30 arrangement favoring the agent, though terms vary by host and by your sales volume.
Startup costs are low. Most hosts charge a modest enrollment or monthly fee instead of requiring you to invest in your own systems and accreditations. For new agents without an established client base, this is the common entry point.
As an Independent Agent
Going independent means your own supplier contracts, your own accreditations, and 100% of commissions. The tradeoff is a higher upfront investment: booking technology, direct accreditation applications, and supplier relationships built from scratch. Commission levels from suppliers tend to start lower until you prove volume. Most agents move to this model after they already have a book of business large enough to justify the overhead.
Industry Accreditations: ARC, IATA, and CLIA
These are not government licenses. They are the credentials that determine what you can actually sell and how you access inventory. If you work under a host, the host’s accreditations usually cover you.
Airlines Reporting Corporation
ARC accreditation lets you issue airline tickets directly through the major global distribution systems. It carries real financial requirements: a bond, letter of credit, or cash deposit of at least $20,000, plus a review of your financial standing.6Airlines Reporting Corporation. ARC Agency Accreditation Datasheet Most new agents work under a host’s ARC number instead.
International Air Transport Association
IATA accreditation handles international ticketing. The application includes financial security, with the amount set by IATA based on your projected sales.7International Air Transport Association. How to Apply for IATA Accreditation As with ARC, most agents access IATA ticketing through a host.
Cruise Lines International Association
If you sell cruises, CLIA is the industry credential. You first become a CLIA Individual Agent Member, then work through tiered certifications starting with Certified Cruise Counsellor and progressing to Master and Elite designations.8Cruise Lines International Association. CLIA Certification CLIA membership also opens training, familiarization trips, and preferred commission rates. There is no bond requirement — just membership fees and coursework — which makes CLIA far more accessible than ARC or IATA.
Federal Rules You Still Have to Follow
No state license does not mean no regulation. Federal rules impose real obligations, especially when air travel is involved.
The Department of Transportation’s full-fare advertising rule under 14 CFR 399.84 requires any advertised airfare to state the entire price the customer will pay, including all mandatory taxes and fees. Advertising a base fare and adding charges at checkout violates the rule.9eCFR. 14 CFR 399.84 – Price Advertising and Opt-Out Provisions It applies to airlines, ticket agents, and anyone acting as an agent for a carrier, which includes travel agents.
Civil penalties for violations of DOT consumer protection provisions reach up to $2,500 per violation for individuals and small businesses.10Office of the Law Revision Counsel. 49 USC 46301 – Civil Penalties Each transaction or advertisement can count as a separate violation.
The FTC oversees consumer privacy and data security. Travel agents collect passport numbers, credit card details, and dates of birth, and the FTC can take enforcement action against businesses that fail to protect that data under its general authority over unfair and deceptive practices.11Federal Trade Commission. Protecting Consumer Privacy and Security
If You Sell to Residents of Regulated States
Texas has no Seller of Travel law, but five other states do: California, Florida, Hawaii, Iowa, and Washington. Those laws apply based on where the customer lives, not where the agent sits. Selling to a California resident from a Texas office can trigger California’s registration requirement. There is no reciprocity — registering in one state does not cover any other.
Requirements vary. California requires registration with the Attorney General’s Office and display of your registration number on all advertising.12State of California – Department of Justice – Office of the Attorney General. Seller of Travel Florida requires a bond. Each of the five has its own fees and renewal cycles. Penalties for operating without registration can include fines and injunctions against doing business in that state. If your client base stretches beyond Texas, check each of these five states before you take the booking.
Errors and Omissions Insurance
Texas does not require E&O insurance for travel agents. Most experienced agents carry it anyway. The policy protects you when a booking error, a missed visa requirement, or a supplier bankruptcy leaves a client out of pocket. Premiums average around $30 to $35 per month.
Standard E&O policies have limits. Data breaches, bodily injury claims, and damage to your own equipment typically fall outside the policy and need separate coverage. If you store client credit card numbers and passport details, cyber liability coverage is worth evaluating alongside E&O.
Local Permits
Some Texas cities and counties require a general business permit or home occupation permit, particularly for home-based operations. The Texas Governor’s Business Permit Office directs owners to verify requirements with local city and county government.13Office of the Texas Governor. Business Permit Office Some jurisdictions have no requirement for home-based businesses without walk-in clients; others charge a modest annual fee. Call your city clerk before you open.