SMSF Corporate Trustee

I am an independent contractor and have my own company which invoices clients. Both my wife and I are the only directors. We want to start our smsf. Can my company be the corporate trustee for smsf? Thanks in advance.

 

It probably could, but it would get extremely messy.

Why bother though. You can get a special purpose company with reduced ASIC fees. I think it only costs about $40 pa in ASIC fees.

 

Te expand on TerryW's "extremely messy" comment. Your Super assets must be clearly distinguishably separate from your personal and business assets.

There are other reasons as well. All members of your superfund must be directors of your company. Tricky if you want to add members, or if you get advice that having both you and your wife as directors of your company is not such a good idea. What if you want to sell your business? Usually simply selling the company shares is the preferrable option.

Take Terry's advice and use a special purpose company.

 

Hi Dissed
I agree. Quite apart from the need to keep the assets separate and problems on sale of the business, there are certain provisions which it is sensible to have in the constitution of the corporate trustee (for example special voting arrangements, who should be directors etc.) which will be different from the provisions for your existing company. And the constitution of the corporate trustee needs to tie in exactly with the trust deed to avoid any ambiguities.

 

Hi Dissed,

Before you go down that path, have you considered other options such as Small APRA Fund (SAF)? Go and talk to a financial planner.