Trial Lawyers Lack Leverage

Trial Attorneys are caught in an endless cycle of interest free loans to their clients. Worse yet they are using after tax dollars to fund these interest free loans.

If you use your past case profits – your own money – to fund your next case, you’re using after-tax dollars. The IRS sees that money as income, successful growing firms can find themselves trapped in an endless cycle of continually tying up your income in the next case, it’s really operating funds that are not tax-deductible. It is time for contingent fee lawyers to get off this treadmill and reduce their tax burden. This can easily be achieved by utilizing leverage as is common in most other industries . Loan costs are generally tax-deductible as a business expense, so you’re using before-tax dollars to fund your case. In addition, funding ones practice with borrowed moneys eliminates the phantom tax as well as allowing you to utilize the  additional capital for  firm expansion or to funding partner’s retirement accounts.

That translates to more profit for you to run and expand your business, invest elsewhere, or just to enjoy.

Once a firm has begun to free up its cash flow by using borrowed money another tremendous tax savings opportunity is created. A lawyer can now take the excess cash flow and shelter it by structuring a portion of their attorney fees. The tax benefits of a structured attorney fee arrangement can be tremendous. Structured attorney fees 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. Structuring your attorney fees can save you taxes today, smooth out your cash flow as well as provide for your retirement.

Finding the maximum tax advantage in your unique situation is research-intensive, and most trial attorneys are busy.

Let the Amicus Capital Services do that work for you, so you can concentrate on the work you really care about: winning trials.


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.
This entry was posted in attorney lending, attorney loans, Law firm consulting, law firm lending, law firm loans, Legal Finance, legal loans, Structured Attorney Fee and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s