If and when you get to the point where you just need help or you want some more time for yourself, do you forsee yourself going with full-time employees or relying on contract laborers where you do not have to worry about the benefit and tax issues?

I think I am leaning towards contractors, at least initially, but for long-term stability, reliability and piece-of-mind, employees may be the route to go.

Any thoughts?

Initially, contractors and temporary staff are the way to go. As you pointed out, there are far less demands on you as an employer with these types of staff, and the benefit of being able to take on help as and when required may be cost effective if you have quiet periods of business.

In the future I aim to have a small office with 2-3 permenant staff, though for the time being I am making do with contracted work on a several-month basis. Admittedly I am paying more per hour than I would to somebody in a full-time position, but until I have a steady stream of work coming in I would rather not be supporting a full-time employee.

I plan on using contractors also at first. It is really a toss up though. With contractors you have less control of their quality and timeliness of the work. I guess you just need to make sure you get some background and references. I have started to look at some of the companies that do referrals, it will cost more but I think it will make it easier and less stressful than finding someone on my own.

Contractors are the way to go if you're at that point where you only need limited help or temporary workers. Paid employees might be a little more loyal and dependable, if you're lucky, but the headaches that go with them are pretty great. Headaches being, at least in the US, unemployment insurance, Social Security, etc.
Conversely, if you're at the point where you really need some long-term, dependable people working for you, it would be worth it to hire some employees.