I'm in the process of getting everything up an running on my shop. They're having to do some work to it so I've got a little of time to finish getting all my ducks lined up.

I've got an appointment with my tax guy, who is going to help me with what he can. I take samples an lunch by sometimes so they were willing to help an answer questions....

But...before I go I'm trying to figure things out an get as much knowledge as I can.
So, what does the State require as far as sales tax and tax id numbers? Everyone I talk to tells me something different.

Thanks for any help. Katie

First, Congratulations on getting your shop.

Personally, I would have serious reservations about a tax person that couldn't answer those questions. Those are very basic questions.

Have you applied for your Federal Employer Indentification Number? You can apply for it online. Make sure your printer works before you do; good ink cartridge, etc. Best I remember you can only access it once to print. Took less than 5 minutes to obtain it.

The reason I bring it up is I believe I had to have it when filling out my application for a sales tax number. (If I sound fuzzy on info, forgive me but I was filling out this paperwork a few months after my husband's death & my brain didn't always function real well.) After you have your EIN, apply for your sales tax number. Again it can be done online. However, unlike the feds, you will have to wait for snailmail to get your number. They do act quickly. I had my completed paperwork in less than a week. Google the official Tennessee state site & you'll find where to apply.

Again, congratulations.

Where are you in TN Katie? I applied for my tax id number online also. The website will walk you through it.

I am in Lafayette, on the KY/TN line.

I'm not having any employees so I thought I wouldn't need a FEIN, am I wrong?
I was thinking I would need;
business license
food handlers permit
sales tax number

Is there something else?
Thanks so much!!

That is correct. That is all I have. You can get a sales tax number with just your SS number.

Ok, that's good!!

So, how exactly does the tax id number work? Making sure I understand, even though I know this makes me look so stupid..just wanna be sure though!
I buy with my number all supplies, I charge the 9.25% to customers, and my taxes are due in Feb on it...I think that's what I read somewhere.

Am I correct?? Thanks so much!!

Actually, I pay my sales and use tax monthly. You have to list total sales, minus anything done in other states. (Living on the border will help you if you do anything in KY!) Also, the tax on food items isdifferent in most counties. So you will pay less on a cake than you would on a non food item. Like a cake topper, for instance. You also have to list in your gross all of the supplies that you have purchased with tax id number. The instructions are easy once you get your number. Congratulations on your new business!