Legal needs tend to increase as a business grows.
A founder who once dealt with a handful of straightforward contracts may suddenly be negotiating larger customer agreements, hiring employees, raising capital or expanding into new markets. Each new stage can introduce decisions with legal consequences.
Hiring a full-time general counsel is one option, although many growing businesses aren’t ready to build an internal legal department. Braverman Law can fill that gap by providing ongoing access to legal support without adding another senior employee to the payroll.
So, when should a business consider it?
1. Contracts Are Becoming a Regular Part of Operations
Occasional contracts can quickly turn into a steady stream as a company grows.
Customer agreements, vendor contracts, licensing arrangements, independent contractor agreements and partnership deals may all require attention. Having a lawyer who already understands the company can make reviewing these agreements more efficient.
Consistent legal support can also help a business develop standard templates and establish a clearer process for reviewing contracts before they are signed.
Contract management becomes increasingly important as a company takes on more commercial relationships. Contract attorneys can help startups manage risk, including through agreements covering vendors, employees and business partners.
2. You’re Hiring More People
Growing teams introduce legal considerations around employment and contractor relationships.
Businesses may need offer letters, confidentiality agreements, intellectual property assignments and independent contractor agreements. They may also have questions about existing policies or particular situations involving members of the team.
An outsourced general counsel who understands how the business operates can provide guidance as these questions arise and bring in specialist employment counsel when a matter requires it.
3. You’re Preparing to Raise Capital
Fundraising can change the legal needs of a company quickly.
Before accepting outside investment, businesses may need to review corporate records, ownership information and previous agreements. The financing itself can introduce questions around investor rights, governance, dilution and control.
Waiting until a term sheet arrives can leave founders trying to resolve old problems during an active transaction.
Regular legal counsel can help businesses keep important records and agreements in better order between financing rounds and identify issues that could become relevant during future due diligence.
4. Legal Questions Are Taking Up Too Much Leadership Time
Founders and senior executives make decisions constantly.
As the company becomes larger, more of those decisions can have legal implications. A CEO may find themselves spending hours reviewing contracts, researching requirements or trying to decide when a question is serious enough to call a lawyer.
That can become an inefficient use of leadership time.
With outsourced counsel, the business has an established legal contact who already knows the company. Leadership can raise questions earlier rather than waiting until a situation becomes urgent.
5. The Business Is Entering Larger Deals
A growing company may begin negotiating with larger customers, suppliers or strategic partners.
These counterparties often arrive with their own contracts and established legal teams. Agreements may contain detailed provisions covering indemnification, intellectual property, confidentiality, insurance, warranties and limitations of liability.
The commercial value of the deal can make these terms particularly important.
Businesses considering New York General Counsel Services can use ongoing counsel to review and negotiate commercial agreements while keeping the company’s broader priorities in mind.
6. Corporate Governance Is Becoming More Complex
Governance can be relatively simple when a business has one or two owners.
That may change after investment, expansion or changes in ownership.
Companies may need to keep track of board approvals, shareholder matters, equity grants, corporate records and other formal requirements. Decisions that were once made informally may need to be documented properly.
Outsourced general counsel can help management understand when legal formalities are required and keep corporate practices aligned with the company’s current stage.
7. You’re Making Bigger Strategic Decisions
Growth often creates decisions that extend beyond routine legal work.
A business might consider acquiring another company, entering a joint venture, restructuring its ownership or preparing for a future sale. Even expansion into a new line of business can introduce contractual and regulatory questions.
At this stage, legal advice can become part of strategic planning.
Counsel who already understands the company’s history, ownership and commercial objectives can provide more context when a major opportunity appears.
8. You Need Regular Legal Support but Aren’t Ready to Hire In-House
A full-time general counsel represents a significant commitment.
The company needs enough legal work to justify a senior hire, along with the salary, benefits and other costs associated with adding an executive-level employee.
Growing companies may reach an intermediate stage where legal questions arise regularly without requiring a lawyer in the office every day.
Outsourced general counsel can provide ongoing support during this period. The arrangement can also develop as the company’s legal needs change.
When Ongoing Legal Support Starts to Make Sense
There isn’t a single revenue figure, employee count or funding round that tells a business it needs general counsel.
Look instead at the legal work appearing across the company.
Frequent contract negotiations, fundraising, a growing workforce, governance requirements and major commercial decisions can all indicate that occasional legal assistance is becoming difficult to manage.
Establishing an ongoing relationship with counsel can give the business access to someone who understands its history and objectives when the next question arises.
FAQs About Outsourced General Counsel
What does outsourced general counsel do?
Outsourced general counsel provides ongoing legal support to a business without joining it as a full-time employee. Work may include contract drafting and review, corporate governance, certain employment matters, compliance and advice on strategic business decisions.
How is outsourced general counsel different from hiring a lawyer for one project?
Project-based counsel is usually retained for a specific matter. An outsourced general counsel relationship is ongoing, allowing the lawyer to develop a deeper understanding of the company’s operations and legal needs.
Do startups need general counsel?
Some early-stage startups only need legal assistance for particular matters. As contracts, fundraising, hiring and governance become more frequent, an ongoing arrangement may become more practical.
Can outsourced general counsel help with fundraising?
General counsel can help companies prepare for financing by reviewing corporate records, identifying potential issues and working on relevant agreements. More complex financing transactions may also require lawyers with specific experience in startup and private-company financing.
