How to start your own law practice in Australia
Going out on your own is no longer the exception. Sole practices now make up 78% of all private law practices in Australia, and when Clarence surveyed its members in 2026, most were starting a firm of their own rather than simply leaving an old one.
This guide covers what it actually takes in 2026: the practising certificate you need in each state, what it costs, the insurance and trust account rules, and how to win your first clients.
It draws on industry data, supplemented by real Clarence members with lived experience going solo.
Is it the right time to go out on your own?
Most lawyers think about it at some point. You have built the expertise, you know your clients, and somewhere along the way the idea takes hold: what if you did this on your own terms? The honest test is not whether you are a good lawyer.
It is whether you are ready to also be a business owner, responsible for the marketing, the finances and the technology, everything that is not the law itself.
The barriers are lower than they were. Chambers and serviced models have taken much of the old set-up cost off the table: the fit-out, the lease, the reception, the IT. You can practise independently without building all of it from scratch.
What practising certificate do I need to run my own firm?
To run your own practice, you need a practising certificate authorising you to act as a principal. Eligibility, supervised-practice conditions and practice-management requirements depend on your jurisdiction and circumstances. Confirm your pathway with the relevant regulator before setting an opening date.
New South Wales
Under the Legal Profession Uniform Law (NSW), a sole practitioner must hold a principal practising certificate. You apply to the Law Society of NSW to vary your certificate once you have completed supervised practice and the practice management course. A sole practitioner trades under their own name unless they register a business name with ASIC.
Victoria
Victoria uses the Uniform Law framework, but its principal-certificate pathway is assessed by VLSB+C. An approved practice management course is one pathway; applicants can also demonstrate the required skills and experience under its policy. Check any supervised-practice conditions separately.
Queensland
Queensland runs its own scheme under the Legal Profession Act 2007. The Queensland Law Society issues principal practising certificates, and principals must complete an approved practice management course. Check current timing requirements with QLS before you commit to a start date.
Wherever you practise, budget lead time. Practice management courses run on set dates and certificate variations take time to process, so start the paperwork a few months before you want to open.
What business structure should I choose?
Most new firms now choose an incorporated legal practice, which offers limited liability, clearer tax planning and stronger borrowing capacity. But the simplest and cheapest way to start is as a sole practitioner, and it is easy to change later as you grow.
The full menu:
- Sole practitioner: lowest set-up cost, simplest to run.
- Partnership: shared costs and expertise, shared liability to match.
- Incorporated legal practice: the direction most new firms take.
- Multi-disciplinary partnership: services beyond law alongside other professionals.
- A chambers or serviced model is a workspace arrangement, not a legal business structure; you still need to choose a legal structure for your practice.
An accountant or commercial lawyer can help you match the structure to your circumstances. Over the past decade the shift has been steadily towards incorporated practices, with traditional partnerships in decline.
What does it cost to start a law firm in Australia?
Plan for your one-off costs plus about six months of running costs.
That buffer, not the set-up bill itself, is what keeps new firms alive while the invoices start flowing.
One-off costs include equipment, branding, website, insurance and set-up fees. Monthly running costs cover rent, insurance, software, marketing and your own salary. Indicative figures for a solo start:
- Practising certificate and PII: $1,000 to $2,400 a year for the certificate, fidelity fund and membership, and PII often under $3,500 in the first year
- Practice management course: $1,590 to $2,400
- Practice management software: roughly $100 to $300 per user per month
- Workspace: from $125 per month for a virtual office with a CBD address, to $850 per month for a private serviced office
Cost and overheads were among the biggest worries members named before going out on their own, which is exactly why a realistic buffer matters. A serviced office or chambers model removes most of the set-up, no fit-out, no separate IT, no reception to staff, which can cut the capital you need considerably.
What insurance do I need?
You cannot take instructions without professional indemnity insurance approved in your state: under the Uniform Law in NSW and Victoria, and through Lexon for most private practices in Queensland. Get quotes early, because for a new practice PII is usually the single biggest compliance cost, and factor in run-off cover from day one so you understand the full lifecycle cost of the firm.
Do I need a trust account?
Only if you will hold client money, for example for settlements, disbursements paid in advance, or fees paid before they are earned. Many new practices deliberately structure their billing so they do not need one at first.
If you receive or control trust money, check the legislation, rules and regulator requirements that apply to your practice. Your record-keeping system must meet those requirements. An examined software list can help you choose a system, but it is not a universal rule that only certified software may be used.
Should I work from home, use a virtual office, or get a serviced office?
There is no one right answer. Weigh up four things: cost, clients, competitors and credibility. A professional address earns trust, and that matters most when you are new.
Working from home is the cheapest start, and the loneliest. Working alone is one of the most common challenges sole practitioners name, and it takes a toll: post-COVID isolation came up again and again in our member research.
A virtual office gives you a CBD address, phone answering and meeting rooms when you need them, at a fraction of a full office.
A serviced office or chambers gives you the central address at a predictable monthly cost, reception and meeting rooms without the overhead of running them, and, if you choose a legal-specific environment, other lawyers around you, which deals with the isolation risk directly.
“Clarence gave me the chance to start my own firm. Without its licence and cowork flexibility, I would have struggled to launch.”
Julian Walsh, Walsh & Walsh Lawyers, Brisbane
Clarence is the only workspace in Australia created by lawyers, for lawyers, across Brisbane, Melbourne and Sydney, with paralegal support through Clarence Legal Services, an in-house incorporated legal practice.
How do I get my first clients?
Finding clients was the single most common concern lawyers named about going out on their own, ahead of cost or income.
The reassuring part: most new legal work still comes through referrals and word of mouth, so your first job is to make yourself easy to find, easy to trust and easy to recommend.
Start with a one-page marketing plan:
- your edge
- your ideal client described in real detail
- their biggest worries
- your message in plain language
- the two or three channels you will show up in consistently
- how you follow up enquiries
The essentials every new practice needs:
- a website with easy consultation booking
- a Google Business Profile
- LinkedIn (the most useful platform for professional services, by a distance)
- a consistent brand
- your name, domain and handles locked in early
Tell your network you have started something; most early work comes from people who already know you. Pick your niche early, because firms built around a specific area of law or client type tend to have the clearest run at the market.
What should my first 90 days look like?
Before you take a single instruction:
- certificate and insurance in place
- structure chosen
- firm name registered
- trust and accounting sorted
- billing model settled
Then the working rhythm: invoice promptly and chase consistently, review pricing regularly, and keep marketing even when you are busy, because a dry pipeline three months from now starts with a quiet month today.
Document your processes as you go, matter management, client onboarding, a central record of undertakings and key dates, so you are never reinventing the wheel.
The full fifteen-point checklist is in the Going Solo guide.
The four guides beneath this one.
How do I set up as a sole practitioner lawyer in Australia?
Step-by-step setup for going out on your own as a sole practitioner in NSW, Victoria or Queensland: practising certificate, insurance, naming rules, trust money and where to base yourself.
Sole practitioner setupWhat does it cost to start a law firm in Australia?
Real numbers for starting a law practice in Australia in 2026: practising certificate, PII, practice management course, software, workspace and the buffer you actually need.
What it costsHow do I start a law firm with almost no money?
The lean playbook for starting a legal practice in Australia on a minimal budget: the costs you can’t avoid, the ones you can defer, and how to structure everything to keep cash in your pocket.
Starting with almost no moneyHow do I start a virtual-first law firm in Australia?
How to run a legal practice without a permanent office: what a virtual-first law firm needs to stay compliant and credible in Australia, what it costs, and when to add physical space.
The virtual-first firm
You do not have to work it all out alone
The rewards of going out on your own, the autonomy, the flexibility and the satisfaction of building something that is yours, are real. So is the workload.
Clarence has supported lawyers across Brisbane, Melbourne and Sydney for 33 years, built to take everything that is not law off your plate: a professional CBD address, meeting rooms and reception, IT support, paralegal support through Clarence Legal Services, and a community of lawyers who understand the work.
“I have an impressive looking office with professional and friendly staff at reception and support, at a reasonable price.”
Annelie Hovler, Forseti Law, Brisbane
Book a tour of a Clarence workspace.
Where these figures come from
The Australian legal market figures on this page (97,500 practising solicitors, 47% growth in a decade, 56% of solicitors are women, 78% of private practices are sole practices) are from the 2024 National Profile of Solicitors, prepared by Urbis for the Law Society of NSW on regulator data as at 31 October 2024.
Findings on cost, isolation and finding clients are from the Clarence member survey, 318 respondents, June 2026.
Practising certificate, insurance and trust account requirements are set by your state regulator: the Law Society of NSW and the Victorian Legal Services Board and Commissioner under the Legal Profession Uniform Law, and the Queensland Law Society under the Legal Profession Act 2007.
Cost figures on this page are indicative and sourced in full on what it costs to start a law firm.
This guide is general information, not legal, financial or tax advice, and it does not take your circumstances into account. Do your own due diligence and seek professional advice before acting on anything in it.
Jurisdiction and legal sources
This page provides general information, not legal advice. It does not consider your circumstances. Check the current law and obtain advice from a qualified professional before making decisions about your rights or practice.
A workspace arrangement does not itself establish that a law practice complies with its professional obligations. Practising certificates, insurance, trust money, confidentiality and supervision must be checked separately for your jurisdiction.
NSW and Victoria
Queensland
Practical regulator guidance
Sources checked 11 September 2026. Laws, regulator requirements and commercial terms can change. The links above are selected sources for this page, not an exhaustive compliance checklist.