To tax, or not to tax...that is the question. Through research, I can tell you that that answer is yes, you charge tax for sales made in your home state (or where your "business" is located). If you sell out of your home, at a local craft fair, online, etc. to buyers in your state. If you are selling to retail buyers out of state, then the answer is no, you do not charge tax. This is known as "Sales and Use tax". **NOTE** if you sell to wholesalers (companies that have a seller's permit) you do not charge tax.
Where do you get started? Well, you first have to obtain a seller's permit by registering your business through your local state board. Once you obtain your seller's permit, congratulations you are now official and can collect tax on your local sales and you can buy your supplies (that you will eventually sell) at wholesale prices. At the end of the year, you will claim these sales and wholesale purchases and be taxed accordingly.
I live in California and there are a lot of rules, but once I contacted my state Board of Equalization, it became easier. Once I obtained my seller's permit, I received a seller's handbook-which has tons of very helpful information.
Here is a link to great resources with I found online for small businesses:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-EmployedThis may be daunting, but hang in there. First and foremost, register your business and DBA name, and get your seller's permit.
I hope this helps, and good luck!!
