As your business continues to grow, it’s easy to start wondering if it’s time for a General Counsel. But what does that role actually cover, and how do you know if it fits your business’s current needs?
According to Forbes, more startups and small-to-medium-sized enterprises are hiring general counsel earlier in their growth stages, reflecting a growing recognition of the importance of in-house legal knowledge.
At KEW Legal®, we work with growing companies that need real answers, not legal jargon. Our team focuses on practical legal guidance that helps you move forward with confidence. We keep it clear and efficient so you’re protected without wasting time or money.
Key Takeaways
- A General Counsel handles legal strategy and risk.
- They manage contracts, compliance, and day-to-day legal needs.
- Businesses hire GCs when legal work grows or gets costly.
- Options include full-time, part-time, or flexible support.
What Does a General Counsel Do?
A General Counsel makes sure your business is legally safe and built to last. Instead of scrambling when legal problems pop up, they help you prevent them before they happen.
Here are the responsibilities of a General Counsel:
Handles Legal Risk Across the Business
Your GC keeps an eye on the legal side of everything. This can include how you hire to how you sell. They:
- Spot risks in deals, partnerships, and policies
- Flag issues before they turn into lawsuits
- Create systems to stay compliant as you scale
Manages Contracts, Vendors, and Negotiations
If it’s a client agreement, vendor deal, or investor term sheet, a GC knows what’s fair, and what’s dangerous. They’ll save you from signing things you’ll regret later.
They:
- Draft and review contracts
- Push back on risky clauses
- Make sure your terms match how you actually operate
Advises the CEO and Leadership Team
The best GCs don’t wait for instructions. Instead, a GC can bring legal clarity into big decisions. They help you:
- Weigh risks during expansion
- Stay compliant across state lines
- Choose the right legal structure as you grow
Oversees Compliance and Regulatory Issues
Across all types of industries, a GC helps you follow the rules that apply to your space, before regulators can penalize you.
- HIPAA, GDPR, and state privacy laws
- Employment law and terminations
- Fundraising rules and investor disclosures
When Should You Hire General Counsel?
You might not need a full-time legal team on day one. But there’s a point where ad-hoc legal help stops being enough, and that’s when hiring a GC starts to make sense.
Hire a GC if you are dealing with any of the following:
You’re Spending Too Much on Outside Counsel
A GC can cover most of what you’re outsourcing, for a flat salary or part-time rate.
- Legal bills are creeping past $5,000–$10,000/month
- You’re paying lawyers to rewrite the same context over and over
- You need faster legal turnaround but don’t want to burn more cash
You’re Scaling Fast, and the Risk Is Rising
Growing fast means more legal exposure. A GC helps you grow without legal gaps.
- Hiring across states or countries
- Taking on enterprise clients
- Handling sensitive user data (like health info)
- Signing investor term sheets or planning an acquisition
Your Team Keeps Asking Legal Questions, And You’re Guessing
If you’re spending time answering things like:
- “Can we offer this discount without breaking contract terms?”
- “Are we allowed to collect this kind of customer data?”
- “Do we need to worry about that email from a regulator?”
A GC can take that off your plate and prevent legal bottlenecks down the road.
You’re in a Regulated Industry
Healthcare, fintech, edtech, and real estate all come with specific legal parameters, often at the state and federal level. In Florida, for example, you might need:
- HIPAA policies and data logs
- Updated employee agreements that follow state labor laws
- A review of non-compete clauses (which are changing fast)
If you’re in one of these industries, skipping legal guidance early on gets expensive later.
Types of General Counsel Explained
Not all General Counsel roles look the same. You’ll need to decide your GC depending on your business and budget.
Here are the different types of General Counsel:
In-House General Counsel
This is a full-time team member and often your first legal hire. They:
- Work directly for your company
- Handle everything legal internally
- Join leadership meetings and shape strategy
Best for: Companies with steady legal needs, funding to support the role, and a team large enough to justify it.
Fractional or Part-Time General Counsel
You hire a legal professional for a few hours a week or month. It’s scalable, predictable, and works well when:
- You need ongoing legal advice but not daily
- You’re past early-stage but not quite enterprise
- You want one person who understands your business inside and out
Best for: Startups between seed and Series B, or any company dealing with multi-layered legal issues on a budget.
Outside General Counsel (Retainer or On-Demand)
This is usually a law firm that acts like your GC. They don’t work in your company, but they support you consistently. They provide:
- Access to a team of legal pros
- Broader professional knowledge across many areas
- Flexible hours
Best for: Small teams who prefer to outsource everything or want to avoid long-term hires.
Focused General Counsel Roles
As your company grows, you might want a GC with a niche skill set, especially in:
- IP law (for tech or product-heavy startups)
- Data privacy (GDPR, HIPAA, CCPA, etc.)
- M&A (if you’re preparing to raise or exit)
- Labor/Employment law (for multi-state hiring or union negotiations)
These hires often come later, but if your industry is regulated, niche knowledge might matter sooner than you think.
How a General Counsel Supports Business Growth
A good General Counsel helps prevent legal fires and help you build faster and smarter.
Here’s how a GC supports business growth:
They Clear Roadblocks Before They Slow You Down
As you grow, items like larger deals, increased hiring and regulation compliance can get complicated.
A GC spots legal friction before it shows up in:
- Sales cycles (reviewing client contracts quickly)
- Fundraising (cleaning up your cap table and compliance)
- Hiring (making sure your employment practices hold up in Florida and beyond)
They Become a Strategic Advantage
Smart business owners incorporate GCs in their structure early and use them to:
- Win better terms in deals
- Build trust with investors
- Create cleaner systems that scale
They Help You Scale Without Breaking Things
Growth brings exposure. A GC helps you avoid:
- Misclassified contractors
- Privacy policy mistakes
- Sloppy contracts that don’t protect your IP
- Compliance gaps that spook investors
They Build Legal Infrastructure That Grows With You
Establishing a strong legal foundation early in the process helps prevent complications and costly issues later in the project.
A GC helps you:
- Document the right processes early
- Set up templates for contracts, policies, and onboarding
- Build a legal function that doesn’t need rebuilding in 12 months
What Qualifications Does a General Counsel Need?
If you’re hiring someone to protect your business, proper qualifications are important. Here’s what matters:
They’re a Licensed, Experienced Attorney
A GC is a licensed attorney, usually with:
- 8–15+ years of legal experience
- A background in corporate, commercial, or regulatory law
- A law degree (J.D.) and bar admission in at least one U.S. state
They’ve Worked Inside a Business Before
A GC is someone who:
- Understands how startups move
- Knows how to balance risk with speed
- Can give clear answers without legal jargon
In-house experience matters, especially in industries like tech and SaaS, or regulated industries like health or finance.
They Know When to Say “Yes” and How to Say “No”
A great GC doesn’t block progress, they help make things happen safely. They know:
- How to give real-world advice, not just “it depends”
- When to push back (and how to do it constructively)
- How to protect you without slowing you down
Ready to Make Legal Simple and Work for Your Business?
If you’re thinking about hiring a General Counsel or just need reliable legal support that fits your growth, KEW Legal® is here to help. We focus on clear, practical advice that protects your business without slowing it down.
Have questions or ready to take the next step? Reach out to us now!
