First-year cost of starting a software company: has anyone done the real math?

I launched my solo proprietorship last year. Here is the actual 12-month breakdown: virtual office 18.000 TL, accountant 30.000 TL, Bağ-Kur premiums 75.000 TL, tax return stamp duties 14.000 TL. Cloud servers and licenses took 42.000 TL due to FX rates. Just keeping the business legally alive without drawing any salary cost me 179.000 TL.

the real surprise hits the day you start invoicing with vat and provisional tax. if you give clients 60-day terms you end up paying the vat upfront to the state next month on money you haven't even collected that's what ruins cash flow the most.

I don't agree with accountants pushing solo software developers into setting up a limited company just "for the prestige." Incorporation costs at least 30.000 TL, annual ledger notarizations are far more expensive, and if things go south, closing it down takes months. Starting as a sole proprietorship and converting once revenue exceeds a certain volume carries way less risk.

A 350.000 TL nest egg can easily carry you for 15-18 months, but you need to draw a hard line between your company account and personal expenses right from day one. Also, if you buy work gear like laptops, monitors, or training courses with an invoice date after incorporation rather than before, you can write them off as business expenses and deduct them from your taxes.

Hidden expenses first-time founders usually overlook: 1) E-signature procurement and e-fatura private integrator credit top-ups, 2) Year-end notary fees for closing out official ledgers and certifying new ones, 3) Maintenance fees and wire transfer commissions on business bank accounts, 4) FX differences when renewing company-registered domains and security certificates.

I left corporate life two years ago with the exact same fears. The biggest shock was waiting on client payments. You wrap up the project but the money takes a solid 45 days to hit your account. Financing that collection lag wears you down far more than fixed company overheads. That's why your cash buffer is so crucial.

Are you under 29? If you meet the young entrepreneur incentive criteria the state covers your Bağ-Kur premiums for one year and you are exempt from income tax up to a certain threshold for three tax periods. That alone reduces your first-year cash outflow by nearly 80.000 TL.

Before starting work with your certified public accountant, we strongly advise signing a written service agreement and locking in the annual total for ledger notarization, stationery, or filing fees required beyond the monthly accounting retainer upfront.

I'd appreciate it if you shared the outcome. If you don't write this down from the start, it leads to arguments later.

I went through the same thing.

Absolutely. If I were to add anything: Splitting your budget without knowing where you're losing users is just throwing money in the dark.

Thanks for writing this, that's the right way. Just because everyone does it doesn't mean it's right.

If you have questions, write them; I'll answer as best I can.

Let me share what happened to me; it might be useful. Start with a small trial; don't commit to everything at once.

Start with a small trial; don't commit to everything at once. Hope this helps.

The most overlooked point about business incorporation cost is this: Measure first, then divide. When the order is right, the debate ends.

Proven by experience.

Exactly, and not many people know this. Measure first then divide. When the order is right, the debate ends.

Of course it varies if your situation is different.

Timely topic.

If you're going this route, sort this out first. Trying to do this alone is the most expensive way.

I'm also curious if anyone does it differently.

Correct.