Re: If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?
COGS deals with inventory sales, especially when you fill out the tax form
COS - Cost of Sale is a COGS type of account typically used by service companies
If all you sell is shipping I would post it all as regular business expense. You do not have inventory that needs adjusted on page 2 of Schedule C which is where COGS comes into play. The G stands for Goods and you do not sell any Goods - only services