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Wait, isn't it an incomplete example? How much money did you start with? In other words, you had to pay the developer some salary before any revenue came in.
by codingclaws 3y ago
Wait, isn't it an incomplete example? How much money did you start with? In other words, you had to pay the developer some salary before any revenue came in.
- jkelleyrtp 3y agoI built a prototype for a potential customer and they agreed to pay me 100k to develop it. Let's say they're my only customer - we're a boutique shop. I didn't need any startup capital - just needed to promise to solve one person's problem.
- mikeyouse 3y agoThat comes off the balance sheet which doesn’t impact taxes. Eg if they raised $100k from friends/family to start the company, that equity investment has no bearing on the P&L or taxes owed.