If you live in Tennessee and want to sell vintage or handcrafted goods on Etsy, you might be wondering if you need a business license. Usually, yes, but it also relies on a number of different things.
Anyone conducting business within the state of Tennessee must have a business license. This comprises people and companies that conduct online sales of goods and services, such as Etsy vendors. There are, however, several exceptions for small firms that only run seasonally or part-time. It’s crucial to verify with your local government for particular requirements as these exemptions differ by city and county.
If you intend to buy things wholesale from suppliers to offer on Etsy, you might also require a wholesale license in addition to a business license. Anyone who purchases and sells items in bulk for the purpose of reselling must have a wholesale license in Tennessee. The Tennessee Department of Revenue issues this license; an application and fee are necessary.
Tennessee imposes a 7% sales tax on all purchases made there. Local sales tax rates, however, might vary and may be in addition to the state rate. For instance, Nashville’s sales tax is 9.25%. Accordingly, you would have to collect $0.93 in sales tax from clients in Nashville if you sold anything for $10.
It’s crucial to remember that sales tax is normally the seller’s, not the buyer’s, duty. As a result, if you sell on Etsy in Tennessee, you would have to collect and send sales tax for any transactions that take place within the state. However, it is the seller’s responsibility to make sure they are duly registered to collect and remit sales tax in their state. Etsy provides a function to help sellers automatically compute and collect sales tax.
In conclusion, you may require a wholesale license if you intend to sell on Etsy in Tennessee. You also probably need a company license. For any purchases made within the state, you will additionally need to gather and submit sales tax. For precise regulations and exclusions, make sure to check with your local government.
You must create a Tennessee Taxpayer Access Point (TNTAP) account in order to submit Tennessee sales tax electronically. Once you have enrolled, you can use the TNTAP system to complete your sales tax return and pay any back taxes. Your sales tax identification number, gross sales, and taxable sales are among the details about your company and sales activities that you must disclose. For complete information on how to create a TNTAP account and submit your sales tax return online, consult the Tennessee Department of Revenue.