Tax season can feel overwhelming, especially for travel advisors juggling client bookings, supplier payments, and business expenses. But with the right strategies, you can stay organized, maximize deductions, and avoid costly mistakes. In our latest Tique Talks episode, tax expert Andrew Roed shares essential tax prep tips that every travel advisor needs to know.

Choosing the Right Business Structure

The way your business is structured has a significant impact on your taxes. Andrew breaks down the differences between sole proprietorships, LLCs, and S Corporations—and how each affects liability, tax rates, and deductions. While many advisors start as sole proprietors, transitioning to an LLC or electing S Corp status can offer tax advantages, depending on your income and business goals.

Treat Your LLC as a Separate Entity

If you’ve formed an LLC, the next crucial step is ensuring your finances are properly separated. This means having a dedicated business bank account, tracking income and expenses separately, and avoiding mixing personal and business transactions. Keeping clean records not only simplifies tax prep but also protects your personal assets in case of legal or financial issues.

Pay Yourself Strategically

Many travel advisors struggle with how to pay themselves efficiently. Andrew highlights different approaches depending on your business structure. If you operate as an S Corp, you’ll need to take a reasonable salary and distribute the remaining profits to reduce self-employment taxes. For LLCs and sole proprietors, setting aside a percentage of revenue for taxes and personal income can help you avoid cash flow surprises.

Plan for Taxes Year-Round

One of the biggest mistakes business owners make is waiting until tax season to think about taxes. Andrew recommends setting aside 20-30% of income for taxes and making estimated quarterly payments to avoid penalties. Keeping up with these payments ensures you won’t face an unexpected tax bill at the end of the year.

Maximize Deductions and Write-Offs

Knowing what qualifies as a business expense can significantly lower your taxable income. Common tax deductions for travel advisors include:

• Business-related travel expenses (flights, hotels, FAM trips)
• Marketing and advertising costs
• Software subscriptions (CRM, itinerary builders, website hosting)
• Home office expenses (if you have a dedicated workspace)
• Professional development and industry conferences

Andrew also dispels deduction myths, ensuring advisors don’t miss out on legitimate write-offs while avoiding red flags that could trigger an audit.

Hire a Tax Professional

If taxes aren’t your strong suit, hiring a tax professional who specializes in travel businesses can save you time, stress, and money. A professional can help you optimize deductions, navigate tax law changes, and ensure your filings are done correctly—avoiding costly mistakes that could lead to IRS penalties.

Use Tax Data to Plan for the Future

Your tax returns aren’t just about compliance—they’re a valuable financial planning tool. Reviewing past years’ data can help you make informed decisions about pricing, expenses, and business growth strategies. Andrew shares how travel advisors can use tax insights to set revenue goals and ensure long-term profitability.

Final Thoughts

Taxes don’t have to be intimidating. By choosing the right business structure, staying organized, planning ahead, and working with a professional, you can take control of your finances and make tax season a breeze.

Want more expert advice? Listen to the full episode now!