Join our investing community

SMSF Corporate Trustee

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Dissed, 9th Jul, 2011.

  1. Dissed

    Dissed Active Member

    Joined:
    28th Aug, 2008
    Posts:
    34
    Location:
    Sydney, NSW
    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.
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    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.
     
  3. DrJohns

    DrJohns Member

    Joined:
    18th Jan, 2010
    Posts:
    22
    Location:
    Adelaide, SA
    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.
     
  4. jorgon

    jorgon Active Member

    Joined:
    28th May, 2011
    Posts:
    25
    Location:
    Brisbane
    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.
     
  5. Ahmoh

    Ahmoh Member

    Joined:
    20th Apr, 2010
    Posts:
    11
    Location:
    Sunnybank, Brisbane, Qld
    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.