Mr. Terefenko is probably right in seeking professional or at least highly experienced help. At 16, there may be a certain amount you can sell income tax free at the federal level, but state laws vary.
Sales tax varies hugely by state and sometimes locality within a state.
When I lived in Texas, I had federal income tax but no state income tax. Small businesses had a lot of tax issues to keep up with. So, no business in Texas.
Now I am in Indiana. I have both federal and state income taxes. I also have state sales tax bu I am much more familiar with Indiana sales tax. No tax on labor or materials used to make a product unless held in inventory. Only one sales tax established by the state. No sales tax on shipping if through USPS but shipping taxed if through FedEx or UPS. No tax on eggs, must be permitted if selling at farmers markets or otherwise to the public, except if you are selling out of your home/farm.
Oh, and don't forget that income tax is only paid on your profits, not your costs, which can most often be deducted from your overall sales.
And Indiana is one of the simpler, more tax friendly states for business. Lol
So yeah, makes friends with someone who understands taxes in Tennessee.
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