Pay a Little Now for a Corporate Trustee or Potentially Pay Thousands More Later - Your Choice
Our advice is almost always to establish a corporate trustee.
We have included a useful video from the ATO at the bottom of this post which explains why a corporate trustee is almost always the best option and summarised the key points below:
All members must play an active role in managing the fund.
Single member funds must have 2 individual trustees but can have a single director of a corporate trustee so there is no need to get advisers, friends, or family involved.
The trusts is recorded as owner of all assets of the SMSF. If there are individual trustees this means that all names must be listed. If membership changes then there can be a significant cost and time attached updating all ownership documents to reflect the change.
Each trustee is fined for penalties so an SMSF with multiple individual trustees could be charged multiple penalties. A corporate trustee receives only a single penalty.