In-House Or Outside General Counsel?
Many business owners mistakenly refer to the creation of an attorney-client relationship as “hiring” a lawyer.
In most instances, the relationship is actually one of independent contractor rather than employer-employee.
However, there may come a point in your company that you find you’re spending so much on legal fees that it may make sense to really hire an Internet business attorney as your in-house legal counsel.
As the employer, you exert more control over the work done. Because these are typically salary arrangements, you can reduce legal costs or at a minimum budget for them like any other employee in your online company.
When should you hire a business attorney as an employee? There’s no hard rule for that. However, if you’re spending more than $200,000 a year in legal fees paid to an Internet law firm, you should consider the in-house counsel alternative.
Will all business lawyers agree to become employees? Of course not.
Many prefer to be their own bosses rather than answer to one…just like you’re a business owner. However, there are some who will if the salary and hours are right.
Why Some Companies Choose Outside Business Legal Representation
Is there a hybrid arrangement for Internet companies that need steady legal representation but not full-time corporate counsel? Yes, some legal professionals (including Attorney Young at our business law firm) offer Internet legal services as part-time outside general counsel for companies.
Although the terms vary by client and law firm, these types of arrangements typically involve an attorney-client contractual relationship based on the client retaining an experienced business lawyer for X number of hours per month essentially acting as the company’s outside general counsel. However, there is no employer-employee relationship (the attorney is an independent contractor).
Related Article: 7 Keys To Selecting The Right Internet Lawyer For Your Business
The business client has the advantages of budgeting for legal services to be rendered without incurring the obligations of hiring a legal professional as a full-time employee.