TL;DR
A fractional general counsel provides on‑demand legal expertise without the overhead of a full‑time hire, offering small and mid‑sized businesses strategic guidance, risk management and contract support at a predictable cost. This article explains what a fractional GC is, the benefits over hiring full‑time counsel, and when your business should consider one.
Do You Need a General Counsel? When and Why to Hire a Fractional GC
The term "general counsel" conjures images of large corporations with in‑house legal teams. Yet as regulatory complexity increases and legal issues touch every aspect of business operations, many smaller companies are discovering they need regular access to legal advice. Enter the fractional general counsel (FGC), a dedicated business lawyer who provides comprehensive legal services on a part‑time or subscription basis.
An FGC can be a dedicated business lawyer, or a lawyer on demand that is available on a contract or subscription basis where they offer personal attention without the cost of a full‑time general counsel. By leveraging FGC services, businesses gain immediate access to an experienced attorney who understands their operations, and can help them navigate legal challenges without paying a six‑figure salary.
What Is a Fractional General Counsel?
A fractional general counsel functions as your company's primary legal advisor but works on a flexible schedule. Unlike outside counsel who may only handle discrete matters, the FGC builds an ongoing relationship with your leadership team and learns the nuances of your business. FGCs provide tailored solutions, help free up executives to focus on growth, and offer cost‑effective expertise compared to the $200,000+ salaries commanded by full‑time general counsels.
Services often include contract drafting and negotiation, compliance oversight, corporate governance advice, intellectual property protection, employment‑law guidance, dispute resolution, and coordination with specialized outside counsel. FGCs also monitor legislative changes and industry trends to ensure clients remain compliant.
Benefits of Hiring a Fractional GC
Cost savings and predictable billing – Because FGCs work on an hourly or retainer basis, businesses pay only for the time they need. This model avoids the salary, plus benefits and overhead associated with full‑time counsel. Current rates (dependent upon the geographic location) show that GC salaries can exceed $200,000, but an FGC provides the same level of expertise at a fraction of the cost. Many firms that offer FGC services offer fixed monthly packages to allow the business to have more cash to invest in other aspects of the business.
Strategic partnership and risk mitigation – A strong FGC is more than a lawyer for hire; they become a strategic partner. They learn your business goals, identify potential legal risks, and help craft strategies to mitigate them. A quality FGC can help establish policies that reduce liability before problems arise.
Flexibility and scalability – As your company grows so does the legal needs ebb and flow. An FGC's services scale up or down with your business. During periods of intense activity (i.e., fundraising, mergers, or product launches) an FGC can devote more hours. During quieter times, you pay less.
Access to a legal network – FGCs often maintain relationships with specialists in areas such as litigation, tax, or intellectual property. They can supervise these subject‑matter experts and ensure their work aligns with your broader goals.
Improved corporate governance – Companies frequently overlook the importance of policies and procedures until a crisis hits. Your FGC will help draft bylaws, board resolutions and compliance programs, and instill discipline and transparency that support investor confidence.
Peace of mind – Knowing you can pick up the phone and reach a lawyer who understands your business provides reassurance. FGCs help you navigate day‑to‑day questions such as "Can we use this customer testimonial?" or "What data‑privacy obligations apply to our new app?" without incurring huge bills.
When to Hire a Fractional General Counsel
Although every business is unique, certain milestones often signal the need for ongoing legal support:
Scaling beyond the startup phase – When your customer base grows, revenue increases, or you expand into new markets, the legal stakes rise. Contracts become more complex, and regulatory exposure multiplies. A FGC can implement processes early, preventing future issues.
Raising capital or closing major deals – Equity financing, venture‑capital rounds, and mergers require careful negotiation and compliance with securities laws. Having an FGC at the table ensures that term sheets, investor rights, and disclosure documents protect your interests.
Entering highly regulated industries – If your business operates in healthcare, finance, AI or other regulated sectors, you face industry‑specific laws and reporting requirements. A FGC familiar with these regimes can help you navigate them.
Frequent contract negotiations – Whether you're drafting SaaS agreements, licensing intellectual property or onboarding new vendors, a FGC will streamline contract workflows, standardize terms and negotiate favorable provisions.
Building an internal compliance program – As your headcount grows, you'll need policies covering employment, privacy, cybersecurity and corporate governance. A FGC can create tailored handbooks and training programs.
How Fractional and Full‑Time GCs Differ
| Aspect | Fractional GC | Full‑Time GC |
|---|---|---|
| Cost | Pay only for services needed; predictable monthly or hourly rates | Fixed salary plus benefits and overhead |
| Flexibility | Scale up or down as your business demands | Limited ability to adjust workload without hiring staff |
| Expertise | Often brings broad experience across industries and can access specialists as needed | Deep institutional knowledge; may have narrower focus |
| Integration | Learns your business over time; may work remotely or part‑time | Embedded in the company's leadership team |
| Risk management | Provides proactive legal strategy and outside perspective | Provides daily oversight; may be influenced by internal politics |
Choosing the Right Fractional GC
When selecting an FGC it is important to look for an attorney with experience advising businesses in your industry, and a track record of advising companies at your stage of growth. Ask about their approach to risk management, how they communicate with clients, and what services are included in their retainer. Confirm they have access to a network of specialists and can coordinate with your existing advisors. Finally, ensure the engagement agreement clearly outlines billing terms, confidentiality obligations and termination provisions.
Ready to Scale with Flexible Legal Support?
Fractional general counsel services provide the expertise of an in‑house attorney without the full‑time cost. By offering on‑demand legal guidance, strategic advice, and predictable billing, Castroland Legal's FGC services help your growing company stay compliant, negotiate better deals, and avoid costly disputes.
If your business is scaling, facing complex regulations, or simply needs consistent legal support, contact Castroland Legal today to see how our tailored fractional GC services can support your goals and propel your success.