I'm going to be forming a LLC for my startup. I'm doing most of the programming myself, but will be using a couple of international contractors via odesk.com. What is the way to report this?
I'm not an accountant and I've only done business from companies based out of Canada, but you wouldn't have paid taxes on work done internationally in most cases. However, each country has it's own rules as to whether you are charged taxes in the country the work was done in.
Even if you are charged taxes in another country, I think you can only claim that as the cost of services to build your goods. There should be a GIFI code for programming.
Where did you buy your services from (what country)?