How to Start a Plumbing Business in 2026 (Step-by-Step)

This guide is for qualified plumbers who want to start their own business — whether as a sole trader, partnership or company. It covers the practical steps: licences, registration, insurance, pricing, tools and getting your first customers.

Step 1: Get Qualified and Licensed

You need a plumbing licence before you can trade. Requirements vary by country and state:

• Australia: Certificate III in Plumbing + state/territory plumbing licence (e.g. NSW Fair Trading, VBA in Victoria, QBCC in Queensland).
• USA: Journeyman or Master Plumber licence required in most states. Requirements vary significantly.
• Canada: Journeyman Certificate of Qualification required in most provinces.
• South Africa: Registration with the Plumbing Industry Registration Board (PIRB).

Step 2: Register Your Business

• Australia: Register as a sole trader or Pty Ltd with ASIC. Get an ABN from the ATO. Register for GST if your turnover will exceed $75,000/year.
• USA: Register as a sole proprietor, LLC or corporation with your state. Get an EIN from the IRS.
• Canada: Register as a sole proprietor or corporation with your provincial registry. Get a Business Number from the CRA.

Step 3: Get Insurance

Essential insurance for a plumbing business:

• Public liability: $5–$20M cover. Protects you if you damage property or injure someone on the job.
• Professional indemnity: Covers claims arising from your professional advice or services.
• Tools and equipment: Covers theft or damage to your tools.
• Workers' compensation: Required if you employ staff.

Step 4: Tools and Vehicle

You will need a reliable vehicle (ute or van) and a core set of tools. Budget $10,000–$30,000 for a well-equipped van setup. Consider leasing your vehicle to preserve cash flow in the early months.

Step 5: Set Your Prices

Use our plumber hourly rate calculator to work out your minimum charge-out rate. Set a call-out fee (see our callout fee guide) and decide on your materials markup (typically 20–40%).

Step 6: Get Your First Customers

• Tell everyone you know — friends, family, former colleagues.
• Set up a Google My Business profile and get reviews from your first customers.
• Join local Facebook community groups and offer your services.
• Partner with builders, property managers and real estate agents.
• Get a simple website with your contact details and service area.

Step 7: Invoice and Get Paid

Invoice on-site, every time. The faster you invoice, the faster you get paid. Download our free plumbing invoice template or use the Drainly app to send professional PDF invoices from your phone in under 60 seconds.

Common Mistakes When Starting a Plumbing Business

• Undercharging to win jobs — it is unsustainable and attracts the wrong customers
• Not invoicing promptly — delays in invoicing lead to delays in payment
• No written quotes — always put quotes in writing before starting work
• Ignoring GST registration until it is too late
• Not separating business and personal bank accounts from day one