Hinsche was born in Manila, the Philippines, the son of Celia Bautista and Otto "Doc" Hinsche, who owned a local casino. His father was from New Jersey and his mother was a Filipina. The family moved to the United States and settled in Beverly Hills. Hinsche attended Loyola High School, where he met Desi Arnaz, Jr. and Dean Paul Martin. The three later formed the group Dino, Desi & Billy and signed with Frank Sinatra's record label Reprise Records.
In the late 1960s, Hinsche began to work as a session musician for The Beach Boys. Although he declined at least one offer to formally join the group in favor of continuing his education in August 1969, he toured extensively with the band as a vocalist and multi-instrumentalist (often playing keyboards and rhythm guitar) from 1971 to 1977 and 1982 to 1996. His sister, Annie Hinsche-Wilson-Karges, was married to the group's guitarist, Carl Wilson. He earned a B.F.A. from the University of California, Los Angeles School of Theater, Film and Television in 1974.
Billy Hinsche provided backing vocals on recordings for Elton John's "Don't Let The Sun Go Down On Me," Warren Zevon's "Desperados Under The Eaves," America's "Hat Trick," Joan Jett's "Good Music" and others.[citation needed]

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