The San Francisco-based hospitality and lodging startup, Sonder, has recently agreed to go public after a successful merger with billionaire investors Alec Gores and Dean Metropoulos, valuing Sonder at nearly $2.2 billion. CEO and co-founder, Francis Davidson commented in a Reuters article how the startup saw a 19% decrease in revenue throughout 2020 which was mainly due to the coronavirus pandemic that swept across the world. Still, the startup which was founded in 2013, managed to reap more than $116 million in revenue last year, showing that the need for affordable travel and lodging is still needed even in the grips of local and national lockdown restrictions.
Although hospitality and tourism have taken a backseat for the last 18 months, a September 2021 article published by the World Economic Forum has encouraged young entrepreneurs to follow through with their plans to make their ideas a business reality. In a recent turn of events, with travel restrictions being somewhat eased in developing nations across the world, more and more startup entrepreneurs are seeing the need for more comfortable, and safer travel and leisure activities that can be enjoyed even when most of the world faces major uncertainty regarding the COVID-19 pandemic.
With major improvements in software and Artificial Intelligence, startup entrepreneurs have an endless supply of tools at their disposal to help them get their business off the ground. With an increase in entrepreneurial productivity sweeping across the United States, we’re answering some of the underlying questions of starting a travel business in 2021.
Where do you start?
To kick-off, it’s clear that you will need to plan your new business. The best way to go about this is to plan everything. From day one, make sure you know exactly what you’re setting out to do, and how you will achieve it. If you already have a niche for your travel business even better, if not – research where a gap in tourism currently may be. It’s encouraged to be creative, but also be realistic in your ventures to ensure you remain on track with your plans, even if things may seem a bit eerie at first.
Choose a business formation strategy
This is something not many new entrepreneurs may think of at the start, but you will need to decide on the form of your business. By this, we mean what type of business will this be operating as, i.e. a Limited Liability Company (LLC), sole proprietorship, C-Corp, S-Corp, or even a partnership? There are various business formations that you can choose from, each hosts its own set of rules, tax regulations, and operating agreements. Remember that in the United States, each state governs individually, and regulations regarding tax and operating agreements can vary between states.
Do you need a registered agent for your travel business?
This is one of the key factors that can put your new travel business up for success or failure. In some instances, some states may reject your business filing if you try to register an LLC or corporation without a registered agent. Registered agents oversee and assist with the necessary legal, state required documentation and filing procedures. More so, registered agents are proactive in their quest to ensure your business remains compliant with current business and tax-related regulations, even when things may change. Advanced business platforms such as Incorporation Rocket have recently seen an increase in business formation-related queries from young entreprem
Why use a registered agent?
Countless reasons argue for and against the use of a registered agent. The main reason we’d suggest using a registered agent is to ensure your new travel business will remain compliant with any regulations set out by local government entities. Registered agents are affordable, and can assist in areas where some business owners lack knowledge. If you want to know more about how to choose the best-registered agent, you can read more on this blog post.
There may be a host of uncertain challenges which you may face when starting a new travel business, but making use of a registered agent can help you solve unknown complexities you haven’t yet endured before. Registered agents assist you to remain compliant in an ever-changing business world, to ensure your new startup is on the right track towards financial success.