I'm interested in building a web app where users are paid a percentage for their content, and I'm wondering where to start. I have no issues with aspects of making payments to users, and gathering the data necessary to know what I owe them. I'm more interested in the less obvious details, like the following:
- At what point (or dollar amount) do I need tax info from users?
- What regulating bodies in the US and/or Canada would I have to answer to?
- Are the earnings I pay to my users still considered taxable income for me?
- Would incorporation simplify or complicate this structure?
Obviously, a lawyer would be a good thing, but given it would initially be a side project, I'm just wondering what I would need to know to even get started. To make matters potentially worse, I am based out of Canada and would like to be able to pay U.S. residents as well as Canadian.
