How To Start A Travel Agency in California

Obtaining the California Seller of Travel License

California stands apart from most states by requiring all travel agencies to register as a Seller of Travel (SOT) with the California Attorney General's Office. This registration is mandatory before you can legally operate and serve California residents, regardless of whether your business is located in the state.

The registration process involves several key steps:

1. Complete the Seller of Travel Registration Application form through the California Attorney General's office
2. Establish a trust account for client payments and financial security
3. Participate in the Travel Consumer Restitution Corporation (TCRC) and pay the $100 annual registration fee per business location
4. Submit all required documentation for approval
5. Receive your official Seller of Travel Certificate and unique CST number

Once approved, you'll receive an Acknowledgment of Registration letter that serves as your legal authorization. Importantly, your California Seller of Travel (CST) number must appear on all advertising materials and in your physical business office. This visible registration signals to clients that your business operates within California's strict consumer protection framework.

Understanding California's Trust Account Requirements

California requires sellers of travel to establish a trust account specifically for client funds. This means any deposits, prepayments, or funds held on behalf of clients must be segregated from your operating account. This protects consumers and demonstrates financial responsibility to regulatory authorities.

Marla Finley

Travel Agent with Travel Agent Pro

I'm so thankful I took the leap and joined the Travel Agent Pro Team! Fantastic company, fantastic training, fellow agents and so much fun! Looking forward to 2025!

Registration renewal is required annually, with the $100 fee due each year. When you partner with Travel Agent Pro, the host business handles much of this administrative complexity, though you remain responsible for understanding these obligations.

Securing an IATA Number through a Host Agency

An IATA number (International Air Transport Association identifier) is the unique credential that authorizes a travel business to conduct business with airlines, hotels, cruise lines, and other travel suppliers. Without an IATA number, you cannot access booking systems or earn commissions.

"The IATA number is your ticket to the global travel distribution system—it's what allows you to officially book travel on behalf of clients and receive supplier commissions."

Kristin Williams

Travel Agent with Travel Agent Pro

At this time last year this was a dream job. Now this once dream job is a successful reality! This was the best way to kickoff 2025 with an invite to the top 50 agents! I am so excited for 2025 travel! I love seeing your smiling faces traveling and enjoying this beautiful earth!

Obtaining an IATA number independently requires substantial financial investment, industry experience documentation, and direct supplier relationships. This is where host agencies become invaluable. Travel Agent Pro holds the IATA accreditation and extends access to its number for affiliated agents, eliminating the need for you to apply independently.

When you join Travel Agent Pro, you gain immediate access to their IATA accreditation, which means you can begin booking flights, hotels, and tours through global distribution systems right away. This accelerates your time to revenue and eliminates a major barrier to entry.

Compliance with State and Federal Travel Regulations

Operating legally as a travel agent involves compliance with multiple layers of regulation. Beyond California's Seller of Travel registration, you must understand federal guidelines and industry standards that govern consumer protection and business practices.

Key compliance areas include:

• Consumer Protection Laws: California's strict consumer protection statutes require transparent pricing, clear cancellation policies, and proper handling of client funds
• OFAC Compliance: You must screen clients and travel destinations against the Office of Foreign Assets Control sanctions list to ensure legal travel authorization
• Business Registration: File your business with California's Secretary of State and obtain a business ID, even if you work remotely
• Annual Renewals: Maintain continuous registration with the Attorney General's office to remain in good standing

Travel Agent Pro simplifies compliance by providing guidance on regulatory requirements, maintaining proper documentation systems, and ensuring your business operates within all applicable laws. The host business's established compliance infrastructure means you benefit from their experience navigating California's complex regulatory environment.

One important exemption exists: if you operate as a sole proprietor, single-member LLC, or single-shareholder S-Corp and conduct all business through your host business's accreditation, you may qualify for exemptions from obtaining your own independent Seller of Travel number. Travel Agent Pro can advise whether your specific business structure qualifies for these exemptions, potentially simplifying your regulatory obligations while maintaining full legal compliance.