Are you using after-tax dollars to fund your practice?

If you use the profits from your cases — your own money — to finance your next case, you’re using after-tax dollars. The IRS sees that money as pure profit, but if you’re trapped in a cycle of continually tying up your income in the next case, it’s really operating capital that is not tax-deductible. Using borrowed money not only breaks that cycle, but lowers your tax burden. That’s because loan payments are generally tax-deductible as a business expense, so you’re using before-tax dollars to fund your case. That translates to more profit for you to run and expand your business, invest elsewhere, or just to enjoy.

The tax benefits of structuring attorney fees can be even greater. Structured settlements for plaintiffs are usually completely tax-free, unlike most investment income, making them an obvious choice for those with expensive long-term care needs. Structured attorney fees, meanwhile, offer the advantage of spreading out your tax burden over the life of your payments. Because the money is taxed as it arrives, rather than in one lump sum, spreading it out offers you the chance to move to a lower tax bracket, taxing the income at a lower rate than it would otherwise have been.

Finding the maximum tax advantage in your unique situation is research-intensive, and requires specialized knowledge. Contact us for a free detailed book on the subject.

Amicus Capital

About Bill Tilley

Bill Tilley, President and Chief Executive Officer – Bill Tilley is the President and CEO of Amicus Capital Services LLC and is responsible for managing day to day operations, marketing, originations and client relations. In addition Mr. Tilley serves on the credit committee along with the three other members. For the past ten years Mr. Tilley has been devoted to creating and then fine-tuning the legal finance industry. Mr. Tilley joined Themis Capital in 1999, launching the legal finance industry in California. Within two years California became the largest market for legal loans. Mr. Tilley was instrumental in growing Themis from $12 million in loans upon his arrival to more than $135 million in less than 4 years. After successfully winding down the Themis portfolio in 2004, Mr. Tilley became the largest broker of legal financial services while consulting exclusively for Counsel Financial Services through 2006. He continued his devotion to creating a full service financial services company that caters exclusively to the legal community leading to the launch of Amicus Capital Services, LLC in early 2007. In 2008 Mr. Tilley expanded Amicus’ financial offerings to include structured settlement/ fee products as well as financial advisory services. Mr. Tilley has personally originated more than $100 million in attorney loans and has participated in the origination of more than $200 million. Mr. Tilley counts several of the most successful plaintiff attorneys in the country as personal friends and has developed a network that includes thousands of invaluable industry contacts. As an expert on legal finance Mr. Tilley has spoken numerous times at attorney conferences throughout the country. In addition Mr. Tilley was recognized on Public Justices wall of honor for his efforts in promoting the non-profit public interest association.
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