Individual vs Corporate Trustees: Which is Right for Your SMSF?
- Leonie Martin
- 1 day ago
- 3 min read
A simple, clear guide to choosing the right trustee structure for your SMSF.
When you establish a Self-Managed Super Fund (SMSF), one of the most important choices is the trustee structure. Do you appoint individual trustees (each member is a trustee) or use a corporate trustee (a separate company acts as trustee and the members become directors)?
At HelloLedger we walk you through the key differences — what each option involves, the risks and benefits, and how to choose the right structure for your professional circumstance.
1. What is an Individual Trustee?
In this structure:
Each member of the SMSF is appointed as a trustee in their personal capacity.
For example: if you and your partner are members, both become individual trustees.
The fund is run by those trustees themselves — no separate company involved.
Key points:
Simpler to set up initially (no company incorporation).
Trustees are personally liable for compliance, debts and legal obligations.
If membership changes (someone leaves/joins), legal ownership of every asset held in the fund often must be retitled.
Single-member funds cannot have only one individual trustee — the law requires at least two.
2. What is a Corporate Trustee?
In this structure:
A company is incorporated and acts as the trustee of the SMSF.
Each fund member is appointed as a director of that company.
The SMSF’s assets are held in the company’s name (in the capacity of trustee).
Key points:
A single‐member SMSF can have only one director, making it ideal for sole practitioner contractors.
If membership changes (someone leaves, joins), a share transfer or change of director can achieve this — asset titles often don’t need to change.
Directors still have obligations, and all must hold a Director ID.
Company has ongoing costs (ASIC annual fee) and must comply with Corporations Act.
3. Why HelloLedger Recommends Corporate Trustee for Most Clients
While both structures are valid, a corporate trustee generally provides greater long-term flexibility and fewer administrative headaches. In our experience, most SMSF clients benefit from choosing a corporate trustee because:
1. Easier to Add or Remove Members
If someone joins or leaves the fund, a corporate trustee structure makes the process much simpler.Directors can be appointed or resigned without needing to retitle every asset owned by the SMSF.
2. Clearer Separation Between Personal and Fund Assets
Using a company as trustee helps maintain a clean distinction between the SMSF’s assets and your personal assets, which improves compliance, record-keeping and audit efficiency.
3. Ideal for Single-Member SMSFs
A single-member fund with a corporate trustee can have just one director, making it compliant and easier to operate without involving a second individual as trustee.
4. Reduced Administrative Burden Over Time
Changes to membership, estate planning restructures, and asset updates tend to be smoother with a corporate trustee because the company remains the constant legal owner of the fund’s assets.
5. Stronger Continuity and Succession
A company continues even if members change, pass away, or lose capacity. This stability can make the fund easier to manage during life events.
6. More Professional Presentation
Many banks, brokers, and investment platforms find corporate trustee structures easier to work with because the ownership title is consistent and straightforward.
7. Potentially Better Protection for Trustees
Although SMSF trustees always have legal responsibilities, acting as a director of a company (rather than as an individual trustee) may help limit personal exposure in certain circumstances.
4. Cost & Administration Comparison
Feature | Individual Trustees | Corporate Trustee |
Setup cost | Lower (no company) | Higher (company incorporation + ASIC fees) |
Ongoing cost | Lower annual admin | Company annual fee + ASIC compliance |
Changing members | Requires asset retitling | Director/share change, fewer retitlings |
Liability scope | Trustees personally liable | Company liable; directors oversee the company |
Single-member suitability | Requires two trustees | Can have one director/trustee company |
Audit & compliance clarity | More complex asset retitling if structure changes | Cleaner ownership, easier audit trail |
5. Key Questions to Ask Yourself
Before deciding, ask:
Do I plan to have only one member or might I add others later?
Do I want to minimise asset retitling in future?
Am I comfortable incorporating a company and being its director?
Do I understand the additional ASIC compliance and costs?
Will I benefit from clearer personal asset separation?
Does using a corporate trustee align with my estate-planning goals?
If you’re uncertain, HelloLedger can run a quick suitability analysis with you.
6. Next Steps with HelloLedger
When you’re ready:
Read our page: What Are SMSFs?
Check eligibility: Am I Eligible to Set Up an SMSF?
Choose structure: Start application and select trustee type below.
Complete your SMSF Application with HelloLedger.
If you choose a corporate trustee: apply for Director IDs (link) and set up company.
Start Your SMSF Application
Book a Call With HelloLedger
