When you buy wholesale, you do not pay sales tax on the item. So when you sell it, your buyer has to pay sales tax and you have to remit the sales tax to the state. If you buy something for $100, sell it to your friends at your cost of $100, you are not earning money, in fact you are losing money, because you have to remit sales tax on that $100 sale. If you are going to sell it to your friends at your cost, you need to have them pay the sales tax.
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