5 reasons to consider outside general legal counsel

Businesses have many options when it comes to hiring legal counsel. It’s a big decision. Your attorney can be an invaluable ally who helps shape the success of your business.

For many small to midsized businesses, enlisting outside general counsel is a wise business decision. Why should you consider going this route?

1. It’s more cost-effective.
It might not make financial sense to hire in-house counsel once you factor in costs such as payroll, benefits, and support staff. Outside general counsel can serve the same purpose, but in a much more cost-effective manner. Likewise, outside counsel is more cost-effective than hiring ad hoc legal representation for discrete issues or projects, especially considering outside counsel’s built-in familiarity with the nuances of your business or legal problem.

2. It’s more proactive.
Waiting until a pressing legal problem erupts can leave you scrambling for trusted legal guidance. As the saying goes, an ounce of prevention is worth a pound of cure. Using legal counsel to take a proactive approach can go a long way toward avoiding litigation and other costly legal problems.

3. Your attorney will understand your business.
There’s immense value to having a lawyer who truly knows your industry and your business–its history, vision, risks, struggles and priorities. With ad hoc legal representation, you don’t get that level of familiarity.

4. You’ll have a go-to for any legal questions that arise.
Starting a business raises a host of legal questions and decisions–but they don’t stop there. Just as you wouldn’t hesitate to hire a lawyer when forming a new business entity, it’s wise to have one “on call” for the countless legal issues that can arise at every stage of the business life cycle.

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5. You don’t have to worry about getting caught off guard.
A central function of in-house counsel is to stay on top of regulatory changes, new case law, and other legal developments in your industry. Outside counsel can serve the same function; often with the added advantage of being backed by a firm of professionals eager to share their own recent legal research or developments.