Starting a business checklist

New to business and not sure where to start? Our Starting your business checklist will help guide you
through some important steps.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

1. Make key decisions
TIP: Get help to start

When starting a business, there is a range of advice and support available from government and
other organisations.

 Use our Expertise & Advice finder to search for expert businesses advisors who can help
guide you through starting your business.
 Attend business events and training to help you develop the tools, skills and knowledge
required to start your business. Use our Events & Training finder to find out what’s on near
you or online.
 You can find grants, funding and support programs from across the government to help start
and grow your business.

☐ Decide on business your structure

When starting a business you must decide on a business structure. Your business structure identifies
how you operate as a trading business and can affect your legal and tax obligations.

There are a number of business structures you can select from, including:

 sole trader – the simplest structure available, it gives you full control
 company – more complex, it limits your personal liability because it’s a separate legal entity
 partnership – made up of 2 or more people who distribute income or losses
 trust – a trustee is responsible for business operations

Learn more about different business structures and how to choose one.

☐ Understand the difference between an employee and a contractor

It’s important to determine if you’re considered a contractor or an employee.

If you have been engaged as a contractor but believe you’re an employee, you may be in a sham
contracting arrangement. A sham contracting arrangement is when an employer attempts to
disguise an employment relationship as a contractor relationship. They may do this to avoid certain
taxes and their responsibility for employee entitlements.

Contractors run their own business, sell a service to others, and can work for more than one client at
a time. Taxation and super obligations will be different to an employee.

Employees work in someone else’s business, the employer controls how and when they work and
get paid a wage.

 Check the differences between employees and contractors on the Australian Taxation Office
(ATO) website – this will help you to work out your tax and superannuation obligations.
 Read the Fair Work Ombudsman’s independent contracting page to understand the different
entitlements of employees and contractor.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

☐ Choose a business name
Choosing the right business name will help create the image you want for your business. It'll also
help to distinguish you from your competitors. A business name is the name your business trades
under.

Once you've decided on a name, you will need to learn what you need to do to ensure you have
exclusive use of your name throughout Australia.

 Find out what you'll need to consider when choosing a name for your business and how to
protect it.
 Consider registering your domain name to create your online identity and brand.

☐ Select a business premises

Choosing the right location for your business can be vital to your success. Each business has different
priorities and needs. Learn what to consider when looking for the right business location and
premises.

If you are running a home-based business, there are specific tax obligations you need to know. Learn
about your tax, insurance and license obligations and where you can go to find support if you are
running a business from home.

If you want to organise a leasing agreement, it’s important to know what questions to ask before
signing and where to look for more information. The Treasury website provides a Look before you
lease: Avoiding the pitfalls in retail leasing guide to help answer general questions about retail
leasing all over Australia.

☐ Know what registrations, licenses and permits you need

When you’re ready to start your business, it’s important to know what registrations you need. These
registrations will depend on your chosen business structure, location, industry, whether you employ
staff and the type of business you’re operating.

 The Business registration – help me decide tool can help you work out the basic business
and tax registrations you should consider applying for.
 You'll need licences and permits to get approval to do certain activities. The Australian
Business Licence and Information Service (ABLIS) can help you find the licences, permits and
council approvals you need for your business.

If your business doesn't have the right registrations it can affect your tax rate or result in penalties or
fines.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

2. Plan your business
☐ Develop your business plan
Developing a business plan can help you set yourself up for success when starting your business.
Having a business plan can:

 help you prioritise your business goals and objectives

 give you control over your business and help you succeed
 help you to seek finance from banks and investors

Learn how to develop a business plan with our business plan template.

☐ Research your market

Researching your market can help you to get a better understanding of who your customers are and
what need they have. It can also help you identify your competitors.

By researching your market, you will be able to better focus your marketing efforts and make well
informed decisions about business opportunities.

Learn how to research your market, including goods and services, customers and your competitors.

☐ Develop your marketing plan

Writing a marketing plan can help you define your marketing strategy and identify the best activities
and channels to market your products or services. Having a marketing plan can help you to:

 identify your target market and attract customers

 set goals and time frames for marketing activities
 map out a strategy for your marketing activities and how to evaluate them.

Learn how to develop a marketing plan with our marketing plan template.

☐ Set up your digital presence

An online business, or simply selling your products or services online, can help you reach a much
wider customer base. An online shopfront can also help you tie your online presence with your sales
system.

You should consider:

 setting up a website for your business and understanding how you can make it easy to find
 utilising social media to help promote your business and connect with customers online
 understanding how you can sell your product or service online

If you operate online, it is important to have good IT practices to protect your systems and
information. Back up your data regularly and store a copy at an external location. It is also important
to protect your business from cyber threats.

Find out more about doing business online and how it can help your business. You can also contact
the Digital Solutions – Australian Small Business Advisory Services program for help going online.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

3. Set up your finances
☐ Get resources to help with your business finances
Grants and other funding programs are available from Australian, state and territory governments
and in some cases from local councils. However, there are generally no grants available for starting a
business.

Knowing who to approach for finance can help you find the best finance option for your business.
You can explore different financing options to finance your business.

Explore our resources to help with your business finances and find assistance from financial
professionals, counsellors or advisors.

☐ Forecast your cash flow

A cash flow statement tracks all the money flowing in and out of your business. It can help you plan
ahead and make sure you always have enough money to cover your payments.

When forecasting your cash flow, consider what expenses will be required to operate your business
and when they need to be paid. You can estimate this by identifying seasonal trends and accounting
for your major expenses.

Use our cash flow statement template to help forecast your businesses finances.

☐ Understand your tax

Understanding taxes and meeting your taxation obligations can save you time and money. By paying
the right amount of tax, you can also avoid late payment penalties.

Make sure you understand the different types of tax that could apply to your business. Some of the
taxes you may need to pay include:

 goods and services tax (GST)

 income tax for business
 capital gains tax (CGT)
 fringe benefits tax (FBT)
 pay as you go (PAYG) withholding.

Small businesses can access tax breaks and small business concessions. Visit the ATO to work out if
you’re a small business entity.

There are some business expenses you can claim to reduce the amount of tax you pay. These can be
claimed as tax deductions when you complete your tax return. See the ATO website for more
information on tax deductions.

Each state and territory has a revenue responsible for state taxes.

Find more information about the tax requirements for your business.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

4. Protect your business
☐ Meet work health and safety requirements
You must manage the risks to the health and safety of your employees, customers, visitors and
suppliers. Each state and territory has its own workplace health and safety (WHS) laws and a
regulator to enforce them.

Learn more about WHS and the requirements in your state or territory.

☐ Protect your intellectual property

Most businesses have some form of intellectual property (IP). IP is the property of your mind or
exclusive knowledge, it can be anything from a name, creation or idea.

It’s important to understand how to protect your IP. Some forms of IP rights require formal
application and examination before you can claim a right to ownership. Other forms of IP protection
such as copyright do not need to be registered.

You should consider applying for a patent if you’ve created a device, substance, method or process
that is new, inventive and useful.

Understand the types of IP protection, how they can help your business and explore additional
resources.

☐ Prepare for the unexpected

During an emergency, your main aim is to ensure your business continues operating. It’s important
to prepare your business for an emergency situation before it happens.

 By carefully researching and planning before an emergency happens, you’ll be ready to act
quickly and effectively. Find out how to prepare your business for an emergency and make
sure your business and staff are ready.
 An emergency management plan will help guide your business before, during and after an
emergency. Develop your emergency management and recovery plan with our template.

☐ Choose your insurance policies

Having the right insurance protects your business, customers and income. Insurance needs can vary
and will depend on your business.

Some forms of insurance are required for Australian businesses.

 Workers’ compensation insurance is compulsory if you have employees.

 Public liability insurance covers you for third party death or injury, and is compulsory for
certain types of companies.
 Third party personal injury insurance is compulsory if you own a motor vehicle. This is
often part of your vehicle registration fee.

Understand the different types of insurance and which ones your business needs.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

5. Know the law
☐ Know the legal essentials
When you start a business, there are many laws your business may need to comply with.

There are legal requirements for:

 business registrations
 fair trading
 contracts
 privacy
 employment
 contractors
 franchising
 intellectual property
 importing and exporting
 environmental protections
 marketing
 terms and conditions.

You should consider consulting with a legal expert or business advisor to understand which laws you
will need to follow.

Find out the most common laws your business may need to comply with.

☐ Understand fair trading

Fair trading laws ensure that trading is fair for your business and your customers.

It is important to understand what fair trading laws there are and how Australian federal and state
laws can protect you, your business and your customers from unfair trading practices. Fair trading
laws include:

 The Competition and Consumer Act 2010 – regulates fair trading in Australia and governs
how all businesses in Australia must deal with customers, competitors and suppliers. While
the Act is a national law, each state and territory also provides additional consumer
protections within their own fair trading legislation.
 Australian Consumer Law – protects consumers of a product or service. Guides are available
to help you understand specific consumer law topics.

Understand what fair trading laws your business needs to abide by to protect your business and
customers.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

☐ Meet standards and codes
☐ Product standards
You must ensure your products (or product related services) comply with mandatory safety and
information standards. These differ between industries. Learn about mandatory standards and check
for those that apply to your business.

If you operate in the food industry, you may need to comply with standards in the Australia New
Zealand Food Standards Code.

☐ Codes of conduct
You must meet mandatory codes of conduct. These set out standards of conduct for your industry,
including how to deal with customers and other businesses.

Find out more about codes of conduct and where to find them for your industry.

☐ Voluntary standards and codes

There are some voluntary standards and codes. Although they aren’t mandatory, it’s in your interest
to follow voluntary standards and industry codes of conduct. These help your business to meet best
practice – improving your operations and service, and ultimately becoming more competitive.

A well-known voluntary standard is ISO 9000, an international standard for quality management,
including quality of products and services. For more information, contact Standards Australia.

Check with your industry association to see which voluntary industry codes of practice you can sign
up to.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

6. Hiring people
☐ Hire an employee
We have an entire checklist dedicated to helping you understand what you need to do when you
hire an employee. The checklist helps small business owners meet Australian laws and hiring
requirements. The checklist covers information about:

 recruitment
 payment
 superannuation and tax
 required records
 ending employment

It also includes tips that might help you throughout the hiring process.

☐ Manage your employees super and tax

Each quarter, you’ll need to:

 work out how much super to pay on behalf of your employee

 report and pay super contributions electronically using the SuperStream standard by the due
date (to avoid the super guarantee charge)

You must collect pay as you go (PAYG) tax from employee payments. Work out the amount to
withhold from payments to your employee using the ATO's tax withheld calculator or tax tables.

If the total amount of wages you pay exceeds a certain amount, you may have to pay a state or
territory payroll tax.

☐ Hire an apprentice
Australian apprenticeships and traineeships are formal on-the-job training arrangements between
an employer and an employee that can lead to a nationally recognised qualification.

They combine training and paid employment and can be full-time, part-time or school based.
Apprentices and trainees are employees, and employers must withhold the correct amount of pay as
you go (PAYG) withholding and make superannuation contributions for them.

 Learn how to hire an apprentice or trainee , understand your employer obligations and
where you can find support.
 Search for an apprentice through the Australian Apprenticeships website.

No matter what industry you’re in, investing in training through an Australian Apprenticeship can
benefit your business and contribute to your bottom line.

☐ Hire a contractor
You need to consider a range of factors when determining whether someone is an employee or
contractor of your business.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist

You may need to treat your contractors differently to your employees for tax and superannuation
purposes. Some contractors may be treated like employees under the law.

 Check the differences between employees and contractors on the Australian Taxation Office
(ATO) website – this will help you to work out your business’s tax and superannuation
obligations.

 Read the Fair Work Ombudsman’s independent contracting page to understand the different
entitlements of employees and contractors and why you need to get this right.

7. Keep required records

☐ Set up record keeping systems
Keeping your records organised can help you understand how your business is tracking, manage
your cash flow and meet your tax and superannuation obligations.

Though you can keep records electronically or as hard copies, the ATO recommends electronic
record keeping if possible. Digital business or accounting software can make record keeping easier. If
you decide to use it, make sure it complies with Standard Business Reporting.

You should store your records in a secure place and keep them backed up in case of a computer
failure.

Use the ATO’s Record keeping evaluation tool to understand what records you will need to keep.

☐ Keep tax and super records

You must keep records of all transactions related to your business’s tax and superannuation affairs,
including records that support the information you include in your tax returns and reports. In
general, you need to keep most records for 5 years starting from when you prepared or obtained the
records, or completed the transactions.

The records you need to keep depend on the tax and superannuation obligations of your business
and the structure of your business (sole trader, partnership, company or trust).

Visit the ATO to learn more about the tax and super records you need to keep.

☐ Employee records
You need to make and keep employee records for 7 years, including records about their:

 employment
 pay
 hours of work
 leave
 super.

Read more about keeping employee records and find handy templates to help manage them on the
Fair Work Ombudsman website.

Download the latest version of this template from https://business.gov.au/starting-a-business-checklist