I pay income tax on any profit the site makes, The girls are independent contractors so I send them a 1099 form at the end of the year if they make over $599 and they pay their own taxes.
Because I continually shoot I'm reinvesting most of the profits and therefore show hardly any profit. I do have almost 1 1/2 years worth of updates which are worth quit a bit, so the business has a lot of in assets but I'm poor. LOL!