Why Should a Business Use Outside General Counsel?

Who do you call when your business has a legal question? If the answer changes depending on the problem, your company may be missing an opportunity to make legal counsel part of its regular business strategy. You shouldn’t need to start from square one every time you have a legal question. Outside general counsel can become an invaluable resource, supporting smart business decisions.

Key Takeaways

• Outside general counsel provides ongoing legal advice by developing a relationship with a business client.
• Access to a lawyer who understands the business can be beneficial to daily operations.
• Hiring general counsel is a smart balance between hiring in-house counsel or specialized attorney services.
• An outside general counsel attorney can provide a broad range of legal services.

What Is Outside General Counsel?

When a business hires an attorney as an employee, it has in-house counsel. The person works full-time for the business. An outside general counsel attorney works with a business on an ongoing basis, but not in a full-time employee capacity. This type of relationship is also different from hiring outside counsel for a specific legal purpose. For example, when a business hires an attorney for an isolated legal question, such as a single lawsuit or transaction. Hiring general counsel may not replace the need to hire a specialized lawyer. The general counsel can coordinate with or bring in attorneys with particular expertise when necessary.

Outside general counsel develops an ongoing relationship. They become knowledgeable about business operations. They can identify goals, common industry legal issues, and potential legal issues that could directly impact the business. An outside general counsel arrangement can be structured around the company's needs.

Why Should a Business Use Outside General Counsel?

A lawyer who only hears from your business when something has gone wrong is working with limited information. An outside general counsel can provide ongoing advice. Their services can focus on regular operations instead of starting over with each separate legal emergency.

Several benefits of having outside general counsel include being able to:

Get Legal Advice Before a Problem Becomes a Lawsuit

Many legal problems can be avoided with a proactive approach. Outside legal counsel can advise regarding the potential consequences of a situation. They can also identify potential legal problems that business owners may not recognize. An attorney can review proposed agreements, business decisions, employment arrangements, and transactions before the company commits. Notably, outside general counsel can serve as preventive legal guidance, rather than simply crisis response.

Have an Attorney Who Understands Your Business

Working with the same legal counsel allows the business to build a relationship with the attorney. As time goes by, the attorney develops a better understanding of how the business operates. That background can make legal advice more efficient because the attorney doesn't have to start from scratch each time. Outside general counsel can become familiar with:

• The company's structure
• Ownership and management
• Industry
• Business objectives
• Existing contracts
• Recurring legal issues

In addition, outside general counsel can assist you with your growth plans, providing the insight you need as your business expands.

Avoid the Cost of a Full-Time In-House Legal Department

Hiring a full-time lawyer to work in-house means additional operating expenses. The business would need to provide the lawyer with a salary and benefits. There may also be additional employment costs. The lawyer may also require additional support, which can lead to additional costs as the business builds an entire internal legal department.

Get Help With Everyday Business Decisions

Not every legal issue facing a business is a crisis. Some are simply part of doing business. You may need someone to review a vendor agreement. Contracts could need to be negotiated. Employment agreements may be necessary as the business grows and hires additional workers. An outside general counsel can also help maintain corporate records and filings, review leases, and address licensing and permitting issues. They can evaluate potential transactions. When larger opportunities such as a merger or acquisition come along, that same attorney can help the business assess the deal and coordinate the legal work involved.

Have a Legal Resource for Major Transactions

A business transaction can seem straightforward at first, but can quickly become legally complex. Outside general counsel can provide insight beyond how the transaction can benefit the business. They can help evaluate the proposed transaction, identify potential concerns, negotiate documents, and coordinate with other professionals or specialized counsel as needed. Whether the company is buying property, acquiring another business, expanding its operations, or changing ownership, that familiarity can be an important advantage.

What Can Outside General Counsel Services Include?

A general business attorney can provide a broad range of legal services. An experienced business lawyer with a track record of working with businesses will understand the unique needs of each client. Outside general counsel can help new business owners who need assistance with formation. They can also assist established businesses who need assistance with contract negotiation. Depending on the industry, a business may need legal counsel to advise on regulatory requirements.

Other services provided by outside general counsel can include:

• Business formation and entity structuring
• Corporate governance
• Contract drafting, review, and negotiation
• Employment agreements
• Regulatory compliance
• Business licensing and permits
• Commercial leases and real estate transactions
• Mergers and acquisitions
• Business transaction analysis
• Ongoing corporate filings and maintenance

An established business could also benefit from outside legal counsel representing it during a merger or acquisition.

Is Outside General Counsel Right for Your Business?

Hiring a full-time lawyer employee isn’t realistic for every business. However, having access to legal advice is invaluable. Outside general counsel gives businesses another option. A business can maintain an ongoing relationship with legal counsel who understands its needs and goals. Jameson & Powers P.C. works with businesses throughout Texas to address their legal needs. Schedule a consultation with us today to find out how outside counsel can benefit your business.