How to Expand Your Travel Business into the U.S. Market

Thinking of Expanding into the U.S.? What Travel Agents Need to Know

At Antravia, we work with travel agents and tour operators across the world, many of whom have one goal in mind. They want to sell more to U.S. clients. Whether you're a DMC based in Italy or a remote travel advisor working from Southeast Asia, the U.S. is an attractive market. It is high-spending, always traveling, and increasingly looking for expertise.

But entering the U.S. market is not as simple as flipping a switch. The financial, tax, and structural rules are different. It can absolutely be worth it, but only if you understand what you're getting into and set it up the right way.

Here’s what we think every international travel seller should consider before expanding into the U.S.

Do You Need a U.S. Entity?

Not always. If you are based abroad and your only link to the U.S. is that your clients happen to live there, you can often sell without forming a company in the U.S. You can still take payments and send invoices.

However, operating as a foreign entity comes with some challenges.

Payment processors often charge more, suppliers may be cautious, and clients sometimes hesitate to send large payments overseas. You also miss out on the benefits that come with having a U.S. business presence.

Setting up a U.S. LLC gives you the option to accept payments more easily, join U.S. host agencies, build partnerships, and avoid some of the international friction that comes from working across borders.

We’ve helped travel companies in Dubai, Madrid, Manchester, and Bangkok form U.S. entities that support long-term growth. It doesn’t have to be complicated, but it does need to be set up properly.

What Does It Involve?

Forming a U.S. LLC as a non-resident is relatively straightforward. You don’t need to be a U.S. citizen or even live in the country.

You’ll typically:

• Choose a state, often Delaware or Florida

• Register your LLC through a registered agent

• Apply for a U.S. tax ID (EIN)

• Set up a U.S. business bank account

• Decide how you want the entity to be taxed

You also need to understand your reporting requirements. A foreign-owned LLC must file Form 5472 with the IRS every year, even if it owes no tax. You may also need to file a U.S. tax return as a non-resident if the business generates income connected to the U.S.

Many advisors waste money on unnecessary legal structures or copy what someone else has done. That’s rarely the best approach. The structure should match your actual business model.

What Are the Payment Benefits?

This is one of the biggest reasons our clients move forward with a U.S. setup.

Getting paid in U.S. dollars is simpler when you have a U.S. bank account. You can connect directly to merchant processors that expect a domestic business. You can avoid the extra FX fees or delays that come with using international platforms like PayPal or Wise.

You also have more flexibility to manage currency exposure. With a clear structure and multi-currency tools, you can choose when and how to convert, which helps protect your profit margins.

Without a U.S. entity, you're likely to get stuck with higher fees, slower transfers, and less control.

What About U.S. Taxes?

This is where you want to get it right from day one.

A U.S. LLC owned by a non-resident typically doesn’t pay income tax itself, but the owner may have to file a U.S. return. You may also need to file annual information forms, like the 5472, or deal with withholding tax issues depending on how you get paid.

If you open U.S. bank accounts, sell to U.S. clients, or work with U.S. hosts or platforms, you may be asked for W-8 forms or tax ID numbers. It helps to have these ready so there’s no delay in releasing your funds.

Sales tax generally does not apply to international travel products, but if you start selling packages with U.S. hotel nights or physical goods, state-level sales tax rules might apply.

This is something we review in detail with our clients before any U.S. move. You don’t want tax risk hanging over your head because you skipped a form or used the wrong structure.

Do You Need a U.S. Travel Seller License?

Probably not. Most states don’t require a travel license if you’re not physically based there. However, there are exceptions. California, Florida, and Washington each have their own rules.

If you are actively marketing to residents of those states or taking payments from them, it’s worth checking the registration thresholds. The rules are not always enforced consistently, but they do exist.

We can help you determine whether any licenses are needed based on your setup and target market.

Final Thought

The U.S. market can be incredibly rewarding, but it’s not a shortcut. You need the right business setup, a solid payment system, and a plan to stay compliant with tax and reporting rules.

Done well, your U.S. expansion can give you access to better clients, smoother payments, and more strategic partnerships. Done poorly, it can drain your time, energy, and money.

If you’re thinking about expanding into the U.S., we can help you map out the right approach based on your goals, structure, and budget.

Already serving U.S. clients?
Here’s what you need to know about U.S. sales tax and booking compliance.

Ready to grow your travel business in the U.S.?
We offer one-off strategy sessions for international travel sellers who want clear, practical advice without the noise. Reach out to us at Antravia.

Book a chat with us here