Billing & Collection Company ( "BICOCO" )
 

BICOCO Billing & Collection Company

Many professional organization use billing companies to collect their accounts receivables. These billing companies are responsible for sending out invoices and contacting customers, and usually make a spread on the amount collected.

A BICOCO, which is an acronym for "Billing & Collection Company" is a company that is owned by some related party to the professional, such as a trust for the professional's benefit. The professional's accounts receivables are transferred to the BICOCO and become the property of the BICOCO, and the BICOCO makes collections and remits a percentage back to the professional practice.

The difference between a BICOCO and an ordinary billing company is that the profits of collection go towards the ultimate benefit of the business owner, and not some third-party. Because of this, it is possible to adjust the percentages so that the underlying business receives a smaller percentage of collections, and the BICOCO retains a larger percentage. This reduces the profits within the underlying business so that such wealth is not exposed to the creditors of the business.

Because profits of the underlying business are retained instead within the BICOCO instead of being distributed through the business to the owner, the BICOCO will quickly accumulate wealth. Because the BICOCO is taxable on its investment income, this is an ideal situation for the use of cash value life insurance to avoid the income taxation on the investment income. There are tremendous estate planning advantages as well when the BICOCO is held outside the business owner's estate and life insurance planning is utilized.

The BICOCO represents a substantial advancement over so-called "accounts receivable financing programs" or "leverage compensation programs" since those programs require the business owner to take a loan and make interest payments that are ordinarily not tax-deductible. Also, there is an interest rate risk inherent in those programs, and their effectiveness for asset protection is highly questionable.

Click Here for more information on the BICOCO.
 

The Billing & Collection Company presents a dramatic advancement over any existing accounts receivable financing programs, most of which are based on misleading financial representations and which require loans that are very expensive over time.

 

The BICOCO does two things for asset protection that accounts receivable financing programs cannot accomplish:

(1) Actually provide asset protection; and

(2) Move the wealth created outside of the business owner's estate.

 

The BICOCO is also fundable with life insurance, which is not available with most accounts receivable financing programs.

 

Click Here for "Facts About Leveraged Compensation Programs"

 

Our unique strategies are door-openers for high net worth clients, and provides them with value-added services that the typical advisor or agent will never be able to compete with.

 

 

These strategies are completely domestic, with no offshore or hidden component, and all planning aspects are fully discloseable to the IRS without heightening audit risks.

  
  Selected Strategies 
 
BETIR Trust   Beneficiary-Taxed Irrevocable Trust (BETIR Trust)
Probably the strongest estate planning and asset protection trust so far created, which may be created in any state. This BETIR Trust is ideal for selling Trust-Owned Life Insurance (TOLI).
     
Captive Insurance Companies   Closely-Held Insurance Company (CHIC)
a variation of a Captive Insurance Company
Nearly all major corporations now have captive insurance companies, and they are now being utilized by smaller businesses. The CHIC in appropriate circumstances can allow clients to purchase life insurance outside their estate with effectively pre-tax dollars.
     
Synthetic Roth   Synthetic Roth (SynROTH)
Provides tax-free growth, but without the contribution limits of an ordinary Roth IRA, and both provides very solid asset protection even in states that do not protect IRAs and transfers the unused portion outside the owner's estate at death. Unlike a typical Roth, the SynRoth may be funded with cash-value life insurance.
     
RetireZ   RetireZ Plan
A non-qualified and heavily asset protected retirement plan that allows the participant to put away nearly an unlimited amount as well as protect the payments from creditors as they are made. A must-have for high-risk professionals.
 

 

  Contact Information
 

Those desiring to be clients of the firm should call 949.629.1176 to schedule a brief free call with a partner of the firm for the sole purpose of evaluating whether the matter and representation would be suitable. We do not answer general questions by phone. General questions directed to the firm should be e-mailed to:

questions  >at<  risad.com

Legal issues about the firm or this website should be transmitted by fax to 877.698.0678 or by mail to Jay Adkisson at 100 Bayview Circle, Suite 210, Newport Beach, CA 92660. Main office locations: Athens, Georgia and Orange County, California

 

 

 

 

 

© 2008 by Riser Adkisson LLP. All rights reserved. This website may not be reproduced in whole or in any part without the express written permission of Riser Adkisson LLP.  The firm's attorney who is responsible for this website is Jay Adkisson. Issues regarding this website should be directed to Mr. Adkisson by fax to 877.698.0678 or by mail to 100 Bayview Circle, Suite 210, Newport Beach, CA 92660.

Riser Adkisson LLP does not practice in any jurisdiction unless one its attorneys has been admitted to practice there, or an attorney of the firm has been properly admitted pro hac vice according to the local court rules of that state. Nothing in this website should be construed to be any advertisement for legal services directed to a state wherein Riser Adkisson LLP is not admitted to practice. Nothing in this website is any substitute for the services of a licensed attorney in the relevant jurisdiction.  Persons resident in a state where Riser Adkisson LLP does not have an attorney regularly admitted to practice law should consult with their own local licensed attorney about that attorney retaining Riser Adkisson LLP to assist the local attorney with any client matters that such attorney believes our services and advice would be helpful.

The information given in this website does not constitute legal or accounting advice or opinion, and should not be relied upon for any planning purposes. It is provided solely and exclusively for general, non-specific educational purposes, and to advise the reader of the nature of the services offered individually by us. Planning of this nature is necessarily very circumstance-specific and therefore it would be dangerous to apply the very general rules described herein to any singular fact-pattern. Prudence demands that you consult with an experienced professional licensed in your state before attempting any of the planning techniques described herein. Additionally, the information given in this website is not meant to be a substitute for legal representation. You should consult with your local attorney regarding your suitability for the techniques stated herein under your local laws.

Except as may be specifically described in a fully-executed client engagement letter, Riser Adkisson is not your counsel and you will not rely upon Riser Adkisson LLP for any advice, counsel or suggestions as to the proposed or actual tax treatment of any transaction. Likewise, Riser Adkisson LLP does not make any guarantees or assurances in connection with any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence demands that you retain independent professional tax counsel to objectively advise you on any tax consequences of any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence also demands that you retain appropriately qualified and independent tax professionals to advise you of your tax compliance and reporting requirements.