Re: Cost of starting a software business (was: Resume questions, how convey? (was: How much should I charge fo...))



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gds@xxxxxxxxxxxxxxxxx writes:

> [edit of previous post]
>
> Ulrich Hobelmann <u.hobelmann@xxxxxx> wrote:
> >gds@xxxxxxxxxxxxxxxxx wrote:
> >> The amount of money necessary to start a business depends on the type
> >> of business, among other things. You may only need a few thousand US$
> >> to build a small prototype, but you may need far more to build out an
> >
> >You don't need anything to *build* software, as long as you can pay the
> >rent and feed yourself (and all other developers). Of course that's a
> >problem not to be neglected ;), but if you can stay at your parents' for
> >instance it might be cheap.
>
> Well, I was thinking of the cost of a few computers, a LAN, UPS, net
> connection, web site (or putting a server in a colo), printer, etc.
> Add rent if you can't start the business somewhere where you don't
> have to pay for the use of the space.

There's a difference between writing software and "starting a
business". Anyone can write a product, by pretending it's a hobby and
avoiding the scrutiny of government. But a business is generally
something that's registered, taxed, regulated, ... it generally has a
first class identity that can be inspected from the outside, a tax
status, various government ID numbers. It's a matter of record when
it appears and disappears. It's considerably more effort and expense
exactly because it cannot be done privately. One can be "in business"
sometimes as an individual, but if you start "a business" (with a name
distinct from your own), it's generally more complicated, and
consequently more expensive. Then again, many of the activities of
starting a business are tax deductible, and mostly your hobbies are
not, so you have some incentive to expose your intent. Then again again,
if you're not making money, tax deductions often don't matter. They
might to the parents--the ones paying for the couch--but to be effective,
you probably have to make them legally involved in your business.
Personally, I have an accountant to make sure I don't mess up the money
part. But then, that's not cheap either. And so it goes, the spinning
of the web as you fill in all the details...

.



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