As a business owner, you must navigate an increasingly complex framework of federal, state and local laws. Staying on top of these laws can consume a significant amount of your workday. Ideally, you would hire in-house counsel to do the job for you, leaving you free to focus on the needs of your customers or clients.
According to Salary.com, the average in-house lawyer in the U.S. earns between $207,000 and $271,000 per year, likely putting your company’s attorney on par with C-level executives. While saving money is certainly one advantage of outsourcing your company’s in-house counsel, three other reasons are equally compelling.
1. Identifying risks
Even though you are a savvy entrepreneur, you probably lack the legal experience necessary to identify all potential risks. By outsourcing your in-house counsel, you have an attorney or team of attorneys to alert you to issues before they become problems. After all, outsourced in-house counsel can help you with choosing your business structure, reviewing your employee handbook and accomplishing similar objectives.
2. Accessing a host of resources
If you hire in-house counsel, you benefit from the skills of a single attorney. While one lawyer may be able to help you with many matters, your in-house attorney is not likely to have all the experience your company needs to thrive. When you outsource your in-house counsel, though, you rely on a team of attorneys that has deep knowledge and extensive resources.
3. Avoiding groupthink
It is not uncommon for in-house counsel to become too close to company leaders. While groupthink can be beneficial, it also can be problematic. By outsourcing your in-house counsel, you ensure your legal advisers maintain the perspective that naturally comes with a bit of physical distance.
Ultimately, while you may want to hire in-house counsel in the future, outsourcing your company’s legal work until your venture grows may make a great deal of sense.