Having outside general counsel is not the same as general counsel. Larger corporations usually employ an attorney full-time to act as general counsel. They generate enough revenue to justify the attorney’s salary, benefits, and other costs. Although most business professionals recognize the efficiency and value of preventing legal issues by speaking to an attorney, they may not have enough legal work to warrant hiring a full-time attorney to work “in-house.”
Despite this, small to mid-sized companies still need the services of a business attorney. It isn’t uncommon for business attorneys to bill by increments of a quarter or a tenth of an hour. Because of how quickly these costs accumulate, business owners may be hesitant to call legal counsel—which may result in higher legal fees over the long term if the business fails to address some potential legal issue before it “blows up.”
Because many small to mid-sized businesses need legal counsel but cannot justify the expense of a full-time in-house attorney, many law firms offer “outside general counsel” services.
What Outside General Counsel Can Provide
When you hire outside general counsel, you get access to an experienced and reliable business law attorney. Most attorneys who provide general outside counseling services work on a monthly retainer or subscription-based fee. Either way, the cost to you is significantly reduced because you are not paying by the tenth of an hour, which can make a business reluctant to contact their attorney and taking a preventive approach.
There are advantages to having outside general counsel. If you go to a law firm each time you have an issue, they will give you legal advice. By having an attorney who serves as outside general counsel, they give you legal advice that is in line with your business objectives when you need it. They can be a fundamental and strategic partner because they can manage your legal work and connect you with the subject-matter experts you need. Your outside general counsel can assist you in other areas too:
- Reviewing contracts and agreements
- Reviewing internal policies and your employee handbook
- Attending board meetings
- Overseeing and conducting employee training for issues such as harassment, discrimination, and other forms of misconduct
While many law firms say they offer outside general counsel services, the attorneys in those firms may never have actually worked as in-house attorneys. The in-house experience gives a unique perspective on the business, including how business people must weigh legal concerns with other factors in making a decision, the concept of risk-taking, and how businesses develop their strategies and objectives. All of that helps the attorney with in-house experience to provide more effective legal advice and services to the business.
Spitz Legal Counsel, LLC
Attorney Mark Spitz formerly served as general counsel and possesses a unique understanding of the legal needs that many businesses face. The fee your company pays for outside general counsel is based on the scope of legal services that you need. We aim to ensure that we have a mutually beneficial relationship, and your fee can be reviewed periodically. Contact Spitz Legal Counsel, LLC for a free consultation. We look forward to working with you.