Setting up an SMSF
When setting up your self-managed super fund, there are many compliance factors you need to consider to ensure you are covering all legal requirements throughout the process. Spot Accounting is here to help residents in the Baulkham Hills area to set up their SMSF and continue to manage it in order to get the most out of their SMSF.
The Australian Taxation Office has outlined steps to take when setting up your SMSF to ensure you are eligible for tax concessions, able to receive contributions and looked after if a trustee is unable or decides they no longer wish to be the active trustee.
- Whether they wish to appoint a professional financial advisor to help you. If you do not have any experience with super regulations, this is a wise approach. Laws and regulations are constantly changing, and it is safest to work with someone who knows what they are doing. Spot Accounting in Baulkham Hills is the perfect place for you to start, as we can provide expert assistance on the ins and outs of SMSFs.
- Decide whether to have individual trustees or a corporate trustee. Generally, a corporate trustee structure often costs more money to set up but removes individual liability as the SMSF acts under the company’s name.
- Ensuring all SMSF members sign a trustee declaration within 21 days of becoming a trustee or director of the corporate trustee.
- Tax File Number (TFN) and an Australian Business Number (ABN). You will then need to provide the ATO with each members’ TFN so that they can receive appropriate tax concessions. Our team in Baulkham Hills can help you undertake administrative tasks such as this.
- Ensuring a trust deed is created and is a legally-recognised document signed by all SMSF members. The trust deed needs to discuss how to establish and operate the fund.
- Funds must be registered with the ATO. You should also elect the fund to be regulated by the ATO. Spot Accounting in Baulkham Hills can assist you with this so that it follows the relevant legal requirements.
- Set up a bank account for the SMSF and an electronic service address.
- Prepare an exit strategy. This should include details pertaining to the process for appointing an individual as an enduring power of attorney.
Once these aspects are considered, you need to make sure all SMSF trustees are compliant with super and tax laws. This can be challenging, especially if you are new to SMSF’s. Luckily, the Spot Accounting team in Baulkham Hills can handle the tricky parts for you. Laws are often being updated, so staying educated on current compliance issues is paramount to the success of the SMSF. Spot Accounting offers constant support and guidance to our SMSF clients in the Baulkham Hills area, ensuring that they never miss a legal update.