I’m aware of all that, I just left it out. My point was that all my sales will be to businesses who will then sell to customers, I’m not looking to do any retail sales so shouldn’t have to deal with sales tax at all. The company I work for now uses a product like I’m wanting to make and pays no taxes on it to the supplier. I can’t see any reason why any sales I make to other companies wouldn’t be the same.
No. Assuming your state is like all the others I’ve experienced, you WILL be obligated to collect sales taxes on every sale you make, and pay sales taxes on every purchase of materials you make. UNLESS you have the magic papers to avoid doing so. Just you saying “my customers are all businesses” is NOT good enough for the tax man.
The ONLY way to avoid paying sales taxes on your raw material purchases is to have the relevant resale permit. Which you (probably) get from your state office of business licenses. AFTER they’ve given you a business license.
And the only way to avoid having to collect & remit sales taxes is to obtain resales permits from all your customers. You might be able to do this without a business license of your own, but there is some risk of the relevant agency auditing one of your customers and checking on his suppliers, including you.
Again, I have no knowledge of TN specifically. But this is sure the way it works everywhere else I’ve been involved in it.
Virtually all of the answers you’ve received are talking about having a business license after you’ve started doing business. To answer your actual question:
Junk mail.
Get a business license, and you will end up on a zillion mailing lists. I have owned sole proprietorships and private corporations, and every time I filed that paperwork I started getting piles of stuff in the mail.
Also, if you wish to start buying products for resale and you live in a state with sales tax, you’ll need that reseller’s license whether you’re selling anything or not. Without it, many wholesalers won’t sell to you, and many of the ones who will sell to you will charge you sales tax.
Every city I’ve owned (or been a partner in) a business in has required a business license. No matter what the federal or state governments said, the city wanted their license fee. That includes both states with sales tax (California) and without sales tax (Montana).
You mentioned this later in your post, but I thought I’d add my anecdotes to yours
No, really, I do know all this, it’s just kind of moot. If I get a deal with a distributor and start making sales, I will get a license. And given the nature of my business, I don’t foresee ever making a sale that will be subject to sales tax. And if I do, I will have the license anyway.
I’m also not worried about paying sales tax on raw materials. If I get a deal with a distributor tomorrow, I’d have to get materials second hand and pay sales taxes until the license goes through, but that’s fine.