Should the middle man collect sales tax?

You should collect the sales taxes. When you register your business you will be required to file and pay for the sale tax your suppose to collect from your clients.

If you're purchasing an item for resell from another company, you should have a reseller's certificate that makes you exempt from paying sales tax. If you do not have one, then you'll have to pay sales tax when you make the purchase, and charge sales tax when it is resold, so long as it's not done as a private sale.

If you regularly purchase things for the intent to resell, you should always have a business license, which in turn, will allow you to get a resale certificate.

Whenever you sell as a business you have to collect sales tax. You should not have to pay sales tax when you purcase for re-sale. You can get a re-sale certifcate with a tax number from the state, it is very easy. Once you receive your certificate you can purchase products for re-sale without paying sales tax. I some cities you can go t the local tax offie and get your certificate. All you need is aan assumed name or a business registration.

In answer to yor actual question, you do not eed to collect sals tax if you are a wholesaler. You need to mak sure you hve the retalers tax excempt number and keep it on file for your records. If you are audited you need to produce this number inorder for you to be axc excempt.