I had a question around whether I would fall into sales tax nexus in Illinois. I have read through Illinois’ Revenue and tax information(https://www2.illinois.gov/rev/Businesses/Pages/default.aspx) but can’t figure out how it applies in my case.
Some background on the LLC. It was formed in Delaware as a 50/50 partnership. Both I and the other co-founder live in Illinois with the business address just being one of our homes. We don’t have any employees, physical locations or sales. It’s just me and a buddy trying to get something started, we both still work full-time jobs.
What we are trying to do is start our own line of tea. Are plan to promote this tea was to contact office refreshments suppliers to see if they would be willing to take us on and get us into some offices in the area and we also planned to attend some local meetups and events to show the brand and give samples. We would also have an online store to buy tea.
The part we are getting confused on is how sales tax would work. The product is made of up 3 things before it’s ready to sell. We have to buy bags for the tea, the tea itself and labels for the bags all from 3 different online suppliers.
So our question is how would sales tax work if we are selling at a local meetup? How would sales tax work if we are trying to sell to office refreshment suppliers in Illinois as a B2B transaction?
Do we need a certificate of resale? A sales permit? We won’t have a physical location, just on an online store and trying to go to some events to promote it or reach out to other business to stock it. We are having a hard time figuring out which laws apply to us and our scenario and what legal work is needed for those scenarios above. We are being cautious because we don’t want to accidentally do anything wrong or spend more money on form filings that we need to before even selling a single item yet.
Any help would be appreciated