Okay. You take a hook and lead and make a jighead. You pay 10% excise tax of the lowest wholesale price for that product. I will have to find the documents for that and share. If you buy a jighead and tie a feather on it, you resale it, you owe 10% excise tax on lowest wholesale price for that jig. So, for example. I have two price scales. Wholesale and retail. Wholesale price lets say $1.00 and retail $2.00. Because I do sell at both price scales. So the tax is 10% of the $1.00 on either sale. So I will adjust prices to $1.10 and $2.10. Also you do not show this tax in your invoice. It is a hidden tax. Why I don't know. You will need a EIN for your venture as well. You can also get a 635 exempt number and not pay excise taxes on hooks and materials. Then you make the jigheads, paint, tie and package. Then, On the finished product charge the 10% tax. A very large tackle company a few years back overlooked the excise tax and it caught up to them and almost shut the company down. I remember they had ads everywhere. Then no more adds. It took several years for them to repay the tax and get back on their feet again to advertise. Hope this helps you a little. I just woke up.
TT