[Startups] Have You Considered a Fractional General Counsel?

Entrepreneurs find they need qualified legal counsel more often than they assumed when beginning their business. It is common to consult a business law attorney when forming a business to ensure crucial decisions related to a business entity, structure, compliance, and tax matters, employee-employer issues, and liability protection are addressed correctly.

Many entrepreneurs discover that they need a competent general counsel at various stages in the business cycle. They need legal services to address matters related to intellectual property, employment matters, contract negotiation, contract review, litigation, and other legal issues. Few small-to-mid-size business owners have the budget to hire outside counsel a full-time, in-house counsel. Retaining a DC fractional general counsel for your company might give you the best of both options.

What is Fractional General Counsel?

An attorney serving as fractional general counsel for a company provides many of the same services that an in-house attorney would provide. However, a fractional general counsel is not an employee of the company. The attorney is a part-time contractor hired by the company to provide on-going legal services. The attorney has other clients who receive fractional legal services from the attorney.

As law firms continue to charge higher hourly fees for legal services and in-house attorneys demand higher salaries and comprehensive benefits packages, more companies are turning to fractional general counsel law firms and attorneys to control costs while receiving the legal services they need continually.

Twelve Benefits of Using Fractional General Counsel for Your Company

An attorney, whether in-house or outside counsel, provides advice and guidance to avoid legal problems while handling emergencies and urgent matters. However, there are some benefits of hiring a fractional general counsel for your company:

1. More control over the cost of legal services: Fractional legal counsel provides legal services for a set fee. A set fee allows you to budget your overhead more effectively.
2. Fractional general counsel avoids expensive legal fees for emergencies: A fractional general counsel can often handle urgent matters within the terms of the contract.
3. Legal services tailored to the needs of your company at an affordable rate: You control how much money you spend and which services are provided.
4. Ensures that you have an attorney to monitor compliance issues and review contracts and other matters timely.
5. You need not search for a law firm and pay high hourly rates whenever you need an attorney: Your fractional GC is readily available.
6. Negotiate a discounted rate for legal services outside the bounds of the fractional GC contract.
7. Answers to legal questions when you need answers: Not when outside law firms have time for you.
8. Save money by hiring a part-time attorney instead of a full-time employee at a flat rate.
9. Freedom to focus on day-to-day operations instead of managing legal details.
10. Fractional GCs often have broad legal experience, making them more versatile for your company’s needs.
11. Proactive legal risk management strategy instead of reactive lawyering.
12. Your GC becomes part of your team, supporting growth and strategic planning based on your goals.

The traditional model of hiring an outside law firm or in-house counsel does not work for many new entrepreneurs. Small business owners discover that neither option is cost-effective. Some larger companies realize that their outside counsel or in-house counsel needs additional support, but they do not want to retain another full-time attorney or pay expensive hourly rates for additional services by outside counsel. A fractional legal counsel can be the answer to the problem.

Instead of ignoring the need for on-going legal counsel or attempting a DIY approach to legal matters, business owners can have the best benefits of in-house attorneys without the high cost of hiring a full-time employee.

Contact a DC Fractional General Counsel for Additional Information

If you are interested in learning more about fractional general counsel and the services you can receive by hiring a part-time in-house lawyer for your company, contact Steve Thienel today. Together, you can customize a plan for your company that meets your needs while staying within your budget for legal services.