Home-Based Travel Agent - September 2007 - (Page 14)

YOUR Lifeline FOR THE AGENT Continued from page 12 fourths of the millions of small businesses in America are sole proprietorships, according to the U.S. Department of Commerce. Obviously, that makes the “mom and pop” form of business the most popular choice for entrepreneurs. But is it the best choice for your homebased travel agency? There are three basic classifications of business entities from which to choose: sole proprietorship, partnership, and corporation. Each has its own distinct set of advantages and disadvantages. The simplest, least expensive way to launch a new business is, of course, as sole proprietor: little or no legal expenses, no complex tax structure, no one else to interfere with management decisions. Setting up a sole proprietorship is an easy job; you can do it without the assistance of an attorney or accountant regardless of the state in which you are doing business. But remember, as a sole proprietor, you have unlimited personal liability for all debts against the business. Both your business and personal assets are at risk in the event of legal trouble. “We started out as a sole proprietorship,” says Rose. “When my daughter joined the business, we considered a partnership.After much consideration, however, we decided that it was time to incorporate.” Unlike sole proprietorships and partnerships, corporations are legal entities that exist separate and apart from the individuals who create them. One of the major advantages of the corporate form of business is the protection it affords for the personal assets of the owners. 14 Travel Specialists, LLC, Denver, CO, uses another form of business known as a Limited Liability Company. In many states, a limited liability company is a legal form of business similar to a corporation. It is a somewhat more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. There is, of course, far more to consider when choosing the best legal structure for your agency. Your accountant will be able to offer advice on which is the best choice for your business. The Small Business Administration has an excellent booklet with additional details. For a copy, log on to www.sba.gov/library/pubs/mp-25.pdf. Registering Your Business Name “Obtaining all of the required permits and registrations for our new business was a nightmare,” says Rose.“Because we weren’t prepared for the task, it seemed overwhelming.You can avoid that bump in the road by doing your research and being prepared for the necessary work.” Depending on your business structure, you may be required to register your business name with the local, state or federal government. If you structure your business as a corporation, in most states your business name will be registered automatically when you file your articles of incorporation. If you structure your business as a sole proprietorship and you don’t use your own legal name as the business name, you must comply with the fictitious or assumed business name requirements of your state. This requires registering the name with a government agency. In some states, you must register at state level. In others, you TAKE ADVANTAGE OF AVAILABLE RESOURCES Most agents consider membership in a travel agency trade association to be a practical necessity. “OSSN is the only organization of which I’m a member,” says Rose, “but I do subscribe to a host of magazines that serve our industry, HomeBased Travel Agent being one of the best.” See below for more organizations that can assist you. I Association of Retail Travel Agents,www.artaonline.com I Home-Based Travel Agent magazine, www.homebased travelagentmag.com I National Association of Commissioned Travel Agents, www.nacta.com I Nexion, www.nexion.com I OSSN, www.ossn.com I Small Business Administration, www.sba.gov will need to register at your county clerk’s office. In either case, the procedure is usually quite simple, involving little or no cost. A phone call to your county clerk’s office should get you the information you need. Setting Up Credit Card Merchant Accounts and Bank Accounts Being able to accept credit cards from your clients is a practical necessity, but finding a company that will set you up with a credit card merchant account can be a frustrating task. “This can be one of the most difficult steps in your business plan,” says Rose. Continued on page 16 Home-BasedTravelAgent SEPTEMBER 2007 http://www.sba.gov/library/pubs/mp-25.pdf http://www.artaonline.com http://www.homebasedtravelagentmag.com http://www.homebasedtravelagentmag.com http://www.nacta.com http://www.nexion.com http://www.ossn.com http://www.sba.gov

Table of Contents Feed for the Digital Edition of Home-Based Travel Agent - September 2007

Contents Editor's Note - Last-Minute Travel Publisher's Note - Communication is Key Your Lifeline Agent Spotlight Your Technology Industry News Hot Deals Home-Based Networking Preventing Legal Woes Destinations: Turkey Cover Story: Walking Ireland Destinations: Caribbean Destinations: Boston Cruises: Forecast Hotels Tours New Products

Home-Based Travel Agent - September 2007

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