Ask HN: How to start a software company (the basics)?

7 points by cubeboy 15 years ago | 8 comments

Looking at 2 possible avenues:

1. Software products and

2. Custom software development in Australia.

I tried Google and got eHow pages and I tried searching HN but didn't find what I was looking for.

I know this is a place about start-ups, but where does one find the basics, from the start? And in Australia?

Software Products:

I am going to develop a product, and host it online. What kind of company do I register for that. What lawyers do I need? If people pay for my product what and where do I get the T&Cs from? How much should I save up before I begin the adventure?

Can I own two companies? Say I want to create a separate company with a couple of graduate developers and we just work on small customised software solutions.

Can I own a parent company that owns these 2?

So many questions, I need a bearing of where to begin.

Andrenid 15 years ago |

In Australia:

You need to register either as a sole trader (get an ABN) or register a company (PTY LTD, with an ACN).

The first is free, but you can't have employees and you have no personal protection from anything that happens to your business.

The latter costs around $1,000 to set up ($4-500 if you do it yourself, the forms etc), and you will have a proper company where you will be the Director, and it can have it's own bank account, it's own everything.

Find a local accountant who has experience setting up companies and running the books (it's a bit more complicated than your usual personal tax returns) and they can usually handle it all for you, that's what i've personally done.

Yes you can run multiple companies. Yes you can have a parent company. It's all just a matter of how you set it all up with ASIC.

There's lots and lots of information on how to set up and run a business in Australia at:

http://www.business.gov.au

http://www.abr.gov.au

cubeboy 15 years ago | |

Thanks Andrenid.

I think I might go for the solo ABN approach for now and move to a company approach once things improve.

Don't people recommend an 'incorporate' company as well? Thanks.

cubeboy 15 years ago |

http://www.paulgraham.com/start.html

Some good information.

I think I envision my path as moving to contracting, then consulting, and creating a consulting company, while this funds my product company. pg suggests this is difficult though. However once the consulting side hits of, I could hire a reputable manager for x amount of profit share, while I receive enough to invest in my product based company.

How naive am I about all of this?

coryl 15 years ago | |

You sound hugely naive. How old are you? I would suggest not worry about the legalese for now, or even looking so far ahead.

Just start your project, try to get a few customers, and go from there. Those steps alone will take you far longer than you'd expect, and teach you more than you can learn in researching how to start a company. You don't need lawyers, you don't need T&Cs, you don't need to incorporate. Just build out your idea and get to market as fast as you can.

cubeboy 15 years ago | | |

Naive indeed. For example, I'll call my product Onlinez. I just register the domain, create the product, and people sign up. I need to allow credit card transactions. Where does this get charged to? I need a business account (ABN) and that is all? And then sign up with on of the online credit card companies?

What if a customer is unhappy with my service? What EULA/T&C do I need to provide? I'm just trying to get my head around all basics, and make sure that when I start I start in the right spot.

Another example, I suppose twitter is a case in point. Who owns Twitter? Is that the companies only product? How do they market Company X creator of Twitter. Or the original owners would just sell Twitter itself and move on to another product?

cubeboy 15 years ago | | |

Looking through your previous comments history. In some it seems you have had some success with websites. Do you consider yourself successful?

Did you build your products on the side whilst holding a full-time job? And you just went at it, creating products and getting cash from users from it?

Are you a good programmer?

I've been thinking about these things a lot, but finding it hard to actualise everything around it. From what you've said, it appears to be as simple as it is. Build a product, try to get customers, and maybe make some money. Worry about everything else later.