How Understanding Cost of Goods (COGS) Can Lead to More Profit

[@LifeOfSheaRenea]

Okay so I have a hair business, if I order hair extensions & wash/dry them, they’ll be included in COGS?

[@BadassBusinessOwners]

Since you have to prepare them to be used, yep, you could count that as COGS :-) - Tammy

[@rae08]

Great video!

[@BadassBusinessOwners]

thanks!

[@LifeOfSheaRenea]

and my customized packaging supplies. I get it shipped to me with all my branding on the products but have to assemble everything to ship to customer. COGS?

[@BadassBusinessOwners]

Yes. Your shipping suppies would be COGS and technically the labor hours assemble it all would be as well. - Tammy

[@LifeOfSheaRenea]

@@BadassBusinessOwnersokay thank you so much I appreciate your response & educating videos.

[@WolfyTheIn-between]

Im just about to open my Pet Grooming business. I am a solo LLC. Does this mean i need to set taxes aside separately for my 'wage' and my business?

[@WolfyTheIn-between]

I will probably be hiring a pro to help me with this stuff - maybe your business- but I need to earn some money first to do that and I don't want to screw everything up

[@BadassBusinessOwners]

If you are a solo LLC you are considered a pass-through entity. You would be taxed on any profits the business makes which will include the money you take out (since normally you would pull from the business profits). Obviously, a tax professional is who you want to speak to, but basically that is how it works. Hope this helps. :-). - Tammy

[@WolfyTheIn-between]

​@@BadassBusinessOwnersthank you