I’ve made an app that’s completely free to use and isn’t otherwise monetised, for now. That being said, I want to do a couple things that involve money:
For a campaign, I want to donate X dollars per content created on the app.
I want to pay influencers to upload content.
For context, I’m the sole creator of this app and will be funding everything out-of-pocket. That being said, I'm interested in attracting outside funding for future donation campaigns, depending on how the first one goes.
I've done a little research about sole proprietorships. My understanding is that if I don't formally set up a business (eg an LLC), then I run a sole proprietorship by default.
Regarding (1), because there's no difference between my personal and business assets/expenses, then I can claim the donation contributions on my personal tax return. Is this assumption right?
Regarding (2), it's not clear to me how to make one-off payments to influencers, or whether I can claim this on my tax return as a sole proprietor.