A lawsuit is the last thing a small business anticipates, but 45% of all small businesses are currently in litigation. Approximately 12 million small business contract lawsuits take place each year. The average liability lawsuit costs $54,000 or more.
Statistics show the importance of having legal counsel available to oversee business operations. They ensure legal compliance and handle all legal matters.
45% of all small businesses are currently in litigation.
With inflation on the rise, businesses are analyzing expenses. You may question whether to use outside counsel, in-house counsel, or general counsel for legal needs. We will explain the differences between these attorney services and the benefits of hiring fractional general counsel.
12 million small business contract lawsuits take place every year.
What is Fractional General Counsel?
A fractional general counsel gives you the benefit of an in-house attorney without excess cost. They have other clients but provides flexible hours of legal service to your company.
Your fractional GC provides services according to your company’s requirements. Legal services and hours are flexible based on your needs. The lawyer can oversee your business operations, ensuring legal compliance and can handle legal matters as they arise.
Benefits of Fractional General Counsel
An in-house attorney is one person working as a company legal employee. A fractional general counsel is not an employee.
The benefits of using a fractional general counsel include:
#1 You avoid paying employment costs, benefits, and overhead for legal advice
#2 The ability to select a flexible cost plan that allows you to figure legal fees into your budget
#3 The fractional general counsel is familiar with your employees and business operations
#4 Possibility of receiving a discount on legal services that are not part of your contract
#5 Fast response to legal questions and time-sensitive matters
#6 Proactive legal counsel for avoiding costly mistakes and problems
#7 Management of legal services outsourcing, if necessary
Small businesses often make costly legal mistakes, including:
» Not registering the business
» Not correctly classifying a contractor vs. employee
» Using online contracts that end up costing more to be corrected
» Accepting client redlines on your agreements that cause future problems
» Committing to contracts without fully understanding what you’re agreeing too Not making sure you own everything your developers create for you
Some errors seem obvious in hindsight, but it is easy to overlook details when you focus is bringing in revenue. A fractional general counsel can help oversee operations and legal matters, preventing costly mistakes and compliance issues.
Cost Savings
An in-house counsel is a paid employee. You pay their salary, benefits, employment taxes, and other overhead. Why pay employer costs for legal advice?
Utilizing a fractional general counsel lets you determine how much help you want. Attorney fees are set according to your needs. Schedule a free consultation using our online form or call (845) 642-9287. We will discuss your business needs and goals, recommending a legal plan that fits your needs.
