During this pandemic, the hospitality and tourism industry has experienced a major blow in the grips of national and local lockdown restrictions for the last 18 months. In the recent guidelines, authorities have somewhat eased travel restrictions in developing nations worldwide. When most of the world is facing major uncertainty, there is a need for safer travel and more leisure activities.
In September 2021, the World Economic Forum published an article encouraging startup entrepreneurs to keep up with their plans to turn their ideas into a business reality. These scenarios have pushed more startup entrepreneurs to witness the need for affordable travel and lodging.
Is there a need for a new travel business?
With the advancements in software and Artificial Intelligence, startup entrepreneurs have a bountiful supply of resources at their fingertips. It is the best time for them to minimize all possible gaps in the tourism industry and get their business off the ground. But before you would like to dive into the entrepreneurship journey, we are here to clarify some of your underlying doubts while starting a travel business in 2022. Are you looking for the checkpoints to gain clarity?
The most important thing that you are in need of is a fool-proof plan for your new travel business. A plan works best when you have invested your time tweaking, testing, and rectifying everything. From day one, be assured of what you are setting out to do and how you will accomplish it.
If you have already chosen a suitable niche for your travel business, you are a step ahead. If not, research the gap in tourism that your ideas can fill with. It is a bonus when you are creative and unique. But when it comes to your ventures, it is great to be realistic. Things might seem a bit unreal at first. However, ensure you stick to your plans.
Need for a travel business formation
Getting ahead, you will need to decide which form of business you want to get into. This is something that many new entrepreneurs cannot think about while kicking off their business. There are various forms such as a Limited Liability Company (LLC), sole proprietorship, S-Corp, C-Corp, or even a partnership. Each business formation hosts its own rules, operating agreements, and tax regulations. Keep in mind that each state governs independently, and there are a host of variations in the regulations regarding tax and operating agreements.
Do you need a registered agent for your travel business?
Imagine a weekend evening, and you are hosting a potluck with your friends on the terrace. You have closed your home office for this day and are focusing on the festivities. Meanwhile, a person enters and hands you a summons or subpoena for a lawsuit filed against your new travel business. You have served this in front of your family and guests. But if you are keen on avoiding this kind of public embarrassment in the future, that’s where the registered agent comes in.
A registered agent can be a viable option that might put your travel business up for success or failure. Sometimes, legal authorities may reject your business filing if you seek to register an LLC or corporation without a registered agent. If you want to dive into the details of what a registered agent is and why you need one, you may read more about it on this blog piece.
What is a registered agent?
Every nation requires businesses registered with a country or state as legal entities (LLCs, corporations, or partnerships). These businesses require a registered agent, sometimes called a statutory agent or agent of process. In layman’s terms, a registered agent is someone (a person or entity) who represents your company for a specific legal concern. The major role of such agents is to accept service of process in legal actions.
The registered agent can also alert you about your business if any state filings are required to carry out beforehand. In some cases, business owners may act as registered agents for their companies, which is perfectly legal. But owners have to mention the third party’s name for this purpose.
Furthermore, we want to add more to your knowledge. Thus, below we get hold of some key facts about registered agents:
- If your business functions in more than one state, you will need a registered agent in each state.
- Anyone can see the registered agent information stored in the public records that are subject to inspection.
- You can appoint a registered agent when your company is first set up or any time after that.
Now when you know everything about a registered agent, you must look for why you need a registered agent.
Why do you need a registered agent?
There are endless reasons to argue for and against the need for a registered agent. The main reason we would say is that a registered agent remains proactive in their pursuit and ensures that your business is compliant with current operating and tax-related regulations, even when things change over time.
Registered agents are experts and can assist in areas where many business owners lack skills. Moreover, registered agents keep track of and assist you with the necessary legal documentation and filing procedures.
Every economy requires various types of companies to carry out business within its borders. For this, you have a legal address to accept service of process on behalf of your company. Also, you are required to register, appoint and maintain a registered agent. If your company is a sole proprietorship or general partnership, you do not have any obligation to hire a registered agent.
The bottom line
When you start a new travel business, a host of unpredictable challenges come in your way. But making use of a registered agent can help you solve different complexities you have not yet faced or factored in. The role of registered agents may sound simple, but legal procedures tend to have strict deadlines and rules that are the same for everyone. If you do not remain compliant in an ever-changing world, you will have to face both legal and financial consequences.