So I have an LLC here in the state of Texas. I have a website I will be openning soon and currently looking for an accountant.

The website will allow approved musicians to use our site as a service to sells their audio clips. We would sell the non-exclusive rights to use the clips in commercials and compositions.The audio clips can be sold over and over again with no exclusivity because we are only selling the non-exclusive rights to them. All revenue will be split 50/50 with the musicians and all transactions will be made via paypal, amazon payments and google checkout. Payments to the artists will be made every quarter and will be sent out via check.

So my questions are:

1: What is the best way to classify the monies I am paying out to artists? For example would it be best to classify them as royalties or something else? With royalties there is something called the FDAP which is a 30% withholding which seems like alot IMO.

2: Would quickbooks be the best software to go with considering I am using online payment services exclusively?

3: Would I be required to send out W9's to all of my sellers?

Thanks so much for your time.

~JOn