Hi Throwndown,
Congratulations on your startup! Let me say, that I am not accountant, but I do manage the finances and taxes of a business. You should be able to expense these costs, which means you would not pay taxes on them. You should only be paying taxes on your net profit, not your gross. If it were me, I would expense this as an content provider and pay them as independent contractors.
One thing to keep in mind is that you will have to collect a W-9 and send out a 1099 for any non corporate entity that you pay more than $600 a year (unless you pay them by credit card). Get the W-9 BEFORE your payees the $600 threshold (simply go to irs.gov to get one). Once you have a W-9, you can issue a 1099 for the year, which is due by Jan 31st.
Also, make sure that you set up a capital account in your books and account for any money that you invest into the business into it. That way, you will be able to pay yourself back for any start-up costs without tax consequences. Keep receipts to document.
Congratulations on your startup! Let me say, that I am not accountant, but I do manage the finances and taxes of a business. You should be able to expense these costs, which means you would not pay taxes on them. You should only be paying taxes on your net profit, not your gross. If it were me, I would expense this as an content provider and pay them as independent contractors.
One thing to keep in mind is that you will have to collect a W-9 and send out a 1099 for any non corporate entity that you pay more than $600 a year (unless you pay them by credit card). Get the W-9 BEFORE your payees the $600 threshold (simply go to irs.gov to get one). Once you have a W-9, you can issue a 1099 for the year, which is due by Jan 31st.
Also, make sure that you set up a capital account in your books and account for any money that you invest into the business into it. That way, you will be able to pay yourself back for any start-up costs without tax consequences. Keep receipts to document.