Starting a business checklist for Australia: key steps

Published Friday 15 May 2026

Table of contents

• Assess if you're ready to start a business
• Define your unique selling point
• Create a comprehensive business plan
• Choose the right business structure
• Register your business name and ABN
• Register for licences and permits
• Register for taxes and understand your obligations
• Set up a dedicated business bank account
• Arrange appropriate business insurance
• Set up your accounting and bookkeeping system
• Confirm your business will be profitable
• Market your business
• Secure your web domain and consider trademarks
• Plan for employees if you need them
• Build your support network
• Simplify your new business finances with Xero
• FAQs on starting a business checklist

Key takeaways

• Start with research and structure. Validate your business idea, choose the right business structure, and register your Australian Business Number (ABN) before you begin trading.
• Handle registrations early. Register your business name with the Australian Securities and Investments Commission (ASIC), apply for relevant licences, and understand your tax obligations including Goods and Services Tax (GST) thresholds.
• Set up your finances from day one. Open a dedicated business bank account, arrange appropriate insurance, and put an accounting system in place so you can track income, expenses, and cash flow accurately.
• Plan for growth. Build a marketing strategy, secure your web domain, and create a support network of mentors, advisors, and fellow business owners to help you succeed long term.

Assess if you're ready to start a business

Starting a business takes careful thought, planning, and honest self-assessment. Before you invest time and money, take a step back to evaluate whether you're ready for the commitment.

Ask yourself whether you have a clear idea of the problem your business solves. Consider your financial situation, your risk tolerance, and how much time you can dedicate. If you're planning to start a business from home, think about whether your living space can support your operations.

Speak with people who've already started businesses in your industry. Their insights can help you spot potential challenges you haven't considered. Carry out market research to understand demand, competition, and pricing in your target market.

Test and validate your business idea

A strong business idea needs real-world testing before you commit fully. Validation helps you confirm there's genuine demand for your product or service.

You can validate your idea by:

• Surveying potential customers. Ask your target audience what they'd pay for your product or service and what problems they need solved.
• Creating a minimum viable product. Build a basic version of your offering to test with a small group before investing in a full launch.
• Analysing competitors. Study businesses offering similar products to understand what works, what doesn't, and where gaps exist.
• Running a pre-sale or pilot. Offer your product or service at a discount to early customers and gather feedback.

Find a business mentor or advisor

A mentor who's built a business can save you time and help you avoid costly mistakes. Look for someone with experience in your industry or business type.

You can find mentors through local business networks, industry associations, or government programs like the Australian Small Business Advisory Services. Many successful business owners are willing to share their knowledge, so don't hesitate to reach out.

Define your unique selling point

Your unique selling point (USP) is what sets your business apart from every competitor. It's the reason customers choose you over someone else.

To define your USP, consider what you do differently or better than existing businesses. This could be a lower price, a faster service, a niche specialisation, or a more personalised customer experience. Your USP should be specific, easy to communicate, and directly relevant to your target customers.

Write your USP down in one or two sentences. You'll use it in your business plan, marketing materials, and pitch conversations. If you can't explain it clearly, refine it until you can.

Create a comprehensive business plan

A business plan maps out your goals, strategies, and finances in one document. It's essential for staying focused and attracting investors or lenders.

Your business plan should cover:

• Executive summary. A brief overview of your business, its purpose, and your goals.
• Market analysis. Research on your industry, target customers, and competitors.
• Products or services. A clear description of what you're selling and why it's valuable.
• Marketing and sales strategy. How you'll attract and retain customers.
• Financial projections. Revenue forecasts, expense estimates, and cash flow predictions.
• Operational plan. How you'll run the business day to day, including staffing and suppliers.

If you need a starting point, use a business plan template to structure your thinking and make sure you cover every key area.

Choose the right business structure

The business structure you choose affects your tax obligations, personal liability, and how you run your business. There are four main business structures in Australia.

Each structure has different legal, tax, and reporting requirements:

• Sole trader. The simplest structure. You operate and control the business yourself, but you're personally liable for all debts. You can register as a sole trader quickly and at low cost.
• Partnership. Two or more people share ownership, profits, and responsibilities. Each partner is personally liable for the business's debts.
• Company. A separate legal entity from its owners. It offers limited liability protection but has more complex reporting and compliance requirements.
• Trust. A trustee holds and manages assets on behalf of beneficiaries. Trusts can offer tax and asset protection advantages but involve higher setup and running costs.

Consider speaking to an accountant or legal advisor before choosing your structure. Your decision will affect how you pay tax, distribute profits, and protect your personal assets.

Understand your legal obligations and registrations

Each business structure comes with specific legal obligations. Understanding these early helps you stay compliant from the start.

Depending on your structure, you may need to:

• Register your business with ASIC (required for companies and business names)
• Obtain an ABN and register for GST if your turnover exceeds $75,000
• Set up pay as you go (PAYG) withholding if you hire employees
• Lodge annual financial reports and tax returns
• Maintain proper records for at least five years

Register your business name and ABN

An Australian Business Number (ABN) is a unique 11-digit identifier for your business. Most businesses in Australia need one to operate, invoice other businesses, and avoid having tax withheld from payments at the highest rate.

You can apply for an ABN for free through the Australian Business Register at abr.gov.au. The online application takes around 10 minutes, and many applicants receive their ABN immediately.

If you want to trade under a name that's different from your own legal name, you'll also need to register your business name with ASIC. Business name registration costs $44 for one year or $102 for three years. You must renew your registration before it expires to keep using the name.

Here's the process for getting set up:

1. Check your desired business name is available on the ASIC registers.
2. Apply for your ABN through the Australian Business Register.
3. Register your business name through ASIC's online portal (you'll need your ABN first).
4. Record your ABN and business name registration details in a safe place.

Register for licences and permits

Many businesses in Australia need specific licences or permits to operate legally. The requirements depend on your industry, location, and business activities.

The Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au is the best starting point. Enter your business details to get a tailored list of the federal, state, and local government licences you need.

Common licence requirements include:

• Food businesses. Food safety registration with your local council and compliance with Food Standards Australia New Zealand requirements.
• Building and trades. State-based trade licences for electricians, plumbers, builders, and similar professions.
• Home-based businesses. Development approval or a home occupation permit from your local council.
• Retail and hospitality. Liquor licences, planning permits, and public liability requirements specific to your state or territory.

Check with your local council about any zoning restrictions or permits that apply to your business location. Licences often need renewing, so set reminders to avoid operating without a valid permit.

Register for taxes and understand your obligations

Once you have your ABN, you'll need to register for the right taxes based on your business activities and expected turnover. Getting this right from the start helps you avoid penalties and unexpected bills.

The key tax registrations for most Australian businesses include:

• GST. You must register for GST if your annual turnover is $75,000 or more ($150,000 for not-for-profit organisations). You can register voluntarily below this threshold. Once registered, you'll charge 10% GST on most goods and services and lodge Business Activity Statements (BAS).
• PAYG withholding. If you have employees, you must register for PAYG withholding and deduct tax from their wages before paying them.
• PAYG instalments. The Australian Taxation Office (ATO) may require you to pay tax in quarterly instalments once your business income reaches a certain level.
• Taxable payments reporting. If you're in the building and construction industry (or other specified industries), you must report payments you make to contractors each year.

You can register for these taxes through the Australian Business Register or by contacting the ATO directly. Keep accurate records of all income and expenses from day one, as you'll need them when lodging your tax returns.

Set up a dedicated business bank account

Separating your business and personal finances makes bookkeeping simpler and gives you a clearer picture of your business's financial health. A dedicated business bank account is one of the first things you should set up.

When choosing a business bank account, compare:

• Fees. Monthly account fees, transaction fees, and any charges for deposits or withdrawals.
• Features. Online banking, mobile apps, integration with accounting software, and the ability to set up multiple accounts.
• Access. Branch availability, ATM networks, and customer support hours.

Once your account is open, use it exclusively for business transactions. This makes it much easier to track income and expenses, reconcile your accounts, and prepare for tax time.

Arrange appropriate business insurance

Business insurance protects you from financial losses caused by unexpected events. The right cover depends on your industry, business size, and the risks you face.

Common types of business insurance in Australia include:

• Public liability insurance. Covers claims from customers or members of the public who are injured or whose property is damaged because of your business activities.
• Professional indemnity insurance. Protects you if a client claims your professional advice or services caused them a financial loss.
• Product liability insurance. Covers claims arising from products you manufacture, supply, or sell.
• Workers' compensation insurance. Compulsory in all states and territories if you have employees. It covers workplace injuries and illnesses.
• Business interruption insurance. Helps cover lost income and ongoing expenses if your business can't operate due to an insured event.

Get quotes from several insurers and read the policy details carefully. An insurance broker can help you find the right cover for your specific situation.

Set up your accounting and bookkeeping system

Good accounting habits from day one save you time and stress as your business grows. A reliable accounting system tracks your income, expenses, and cash flow so you always know where your business stands financially.

Cloud accounting software like Xero lets you manage invoicing, bank reconciliation, and financial reporting from anywhere. It connects to your bank account to automatically import transactions, reducing manual data entry and the risk of errors.

When setting up your system, make sure you:

• Choose the right software. Pick accounting software that suits your business size and industry. Look for features like invoicing, expense tracking, bank feeds, and BAS preparation.
• Set up your chart of accounts. Organise your income and expense categories so your financial reports are meaningful and accurate.
• Connect your bank account. Link your business bank account to your accounting software for automatic transaction imports.
• Establish a routine. Set aside regular time each week to reconcile transactions, send invoices, and review your cash flow.

For more guidance on getting started, explore the tools and guides available for new business owners.

Confirm your business will be profitable

Before you launch, make sure the numbers add up. Understanding your startup business costs and expected revenue helps you determine whether your business can turn a profit.

Start by listing every cost you'll incur before and during your first year of trading. These typically include:

• Setup costs. Equipment, fit-out, stock, licences, insurance, and professional fees.
• Ongoing costs. Rent, utilities, wages, marketing, software subscriptions, and loan repayments.
• Variable costs. Raw materials, shipping, packaging, and commissions that change with sales volume.

Then estimate your revenue based on realistic sales projections. Calculate your break-even point, which is the amount of revenue you need to cover all your costs. If the gap between your costs and projected revenue is too large, revisit your pricing, reduce expenses, or reconsider your business model before launching.

Market your business

A clear marketing strategy helps you reach the right customers and build awareness for your new business. Start by identifying who your ideal customers are and where they spend their time.

Your marketing plan should cover the basics:

• Target audience. Define your ideal customer by demographics, location, interests, and buying behaviour.
• Key channels. Choose the platforms where your audience is most active, whether that's social media, search engines, local directories, or industry events.
• Messaging. Craft clear, consistent messages that communicate your unique selling point and the benefits of your product or service.
• Budget. Set a realistic marketing budget and allocate it across your chosen channels. Track what works so you can adjust your spending over time.

You don't need a large budget to start marketing effectively. Many free or low-cost options, like social media, email marketing, and local networking, can generate strong results for new businesses.

Secure your web domain and consider trademarks

Your web domain is your business's address on the internet, and it's worth securing early. Register a domain name that matches your business name or is easy for customers to find and remember.

In Australia, you can register a .com.au domain through accredited registrars. Check availability early, as popular names get taken quickly. Consider registering variations of your domain to protect your brand.

If your business name, logo, or slogan is central to your brand, consider registering a trademark with IP Australia. A trademark gives you exclusive rights to use that mark in connection with your goods or services across Australia. The application process takes several months and costs from $250 per class of goods or services.

Build your business website

A professional website gives your business credibility and a place for customers to learn about your products or services. Even a simple site with clear information can help you attract and convert customers.

When building your website, focus on:

• Clear navigation. Make it easy for visitors to find your products, services, contact details, and pricing.
• Mobile responsiveness. Your site should look and work well on phones and tablets, as most people browse on mobile devices.
• Search engine optimisation (SEO). Use relevant keywords in your content, titles, and descriptions so potential customers can find you through search engines.
• Contact information. Display your phone number, email address, and physical location (if applicable) prominently.

Establish your social media presence

Social media helps you connect with customers, build brand awareness, and drive traffic to your website. Choose platforms that align with your target audience and business type.

You don't need to be on every platform. Pick two or three where your customers are most active and focus on posting consistently. Share content that's useful, relevant, and authentic. Respond to comments and messages promptly to build trust and engagement.

Plan for employees if you need them

If your business needs staff, plan your hiring process and understand your obligations as an employer before you start recruiting. Australian employers must meet specific legal and financial requirements.

Key employer obligations include:

• Superannuation. You must pay superannuation contributions of 12% of each eligible employee's ordinary time earnings. Payments are due quarterly to a compliant super fund.
• Fair Work compliance. Follow the National Employment Standards and the relevant modern award or enterprise agreement for your industry. These set minimum pay rates, leave entitlements, and working conditions.
• PAYG withholding. Register for and manage PAYG withholding to deduct the correct amount of tax from employee wages.
• Workers' compensation. Take out workers' compensation insurance in your state or territory before your first employee starts.
• Record keeping. Maintain accurate employee records, including hours worked, pay rates, leave balances, and superannuation contributions.

For a more detailed guide on the hiring process, see the guide to hiring employees.

Build your support network

Running a business can feel isolating, especially in the early stages. Building a network of advisors, peers, and supporters gives you access to knowledge, encouragement, and practical help.

Consider connecting with:

• Business mentors. Experienced business owners who can offer guidance based on their own journeys.
• Accountants and bookkeepers. Professionals who can help you manage your finances, plan for tax, and make informed decisions.
• Industry associations. Groups that provide training, advocacy, and networking opportunities specific to your sector.
• Local business communities. Chambers of commerce, co-working spaces, and small business meetups where you can share experiences and learn from others.

Your support network doesn't need to be large. Even a few trusted connections can make a significant difference when you're navigating the challenges of starting and growing a business.

Simplify your new business finances with Xero

Starting a business involves plenty of financial admin, from tracking expenses and sending invoices to lodging BAS and managing cash flow. Xero brings all of these tasks together in one place, so you can spend less time on bookkeeping and more time building your business.

With Xero, you can connect your bank account for automatic transaction imports, create and send professional invoices, and access real-time financial reports from any device. As your business grows, Xero grows with you, adding features like payroll, project tracking, and multi-currency support when you need them.

Ready to get started? Get one month free and see how Xero can help you manage your new business finances with confidence.

FAQs on starting a business checklist

Here are some frequently asked questions about starting a business in Australia.

How long does it take to start a business in Australia?

You can register an ABN in as little as 10 minutes online, and many sole traders begin operating the same day. However, businesses that need licences, permits, or a company structure may take several weeks to set up. The total timeline depends on your industry and how much planning you've done in advance.

Can I start a business while working full-time?

Yes, many people start a business alongside their full-time job. Check your employment contract for any restrictions on outside business activities. Starting part-time lets you test your idea and build a customer base before committing full-time.

How much money do I need to start a business?

Startup costs vary widely depending on your industry and business model. A service-based sole trader working from home may need just a few hundred dollars, while a retail or hospitality business could require tens of thousands. List all your expected costs and build a financial buffer for the first three to six months of trading.

Do I need an accountant when starting a business?

An accountant isn't legally required, but professional advice can save you money and help you avoid costly mistakes. An accountant can help you choose the right business structure, set up your tax registrations, and plan your finances. Cloud accounting software like Xero can also handle much of the day-to-day bookkeeping.

Do I need to register for GST?

You must register for GST if your business has an annual turnover of $75,000 or more, or $150,000 for not-for-profit organisations. If your turnover is below the threshold, registration is optional but can be beneficial if you want to claim GST credits on business purchases. Once registered, you'll need to lodge BAS returns, usually quarterly.

How do I get an ABN?

You can apply for an ABN for free through the Australian Business Register at abr.gov.au. The online application takes around 10 minutes. You'll need to provide details about your identity, business structure, and business activities. Most applicants receive their ABN immediately after submitting the application.