Hiring a Fractional General Counsel

When Outside Counsel Is Enough

For many companies, outside legal counsel is the right solution early on.

Outside counsel works well when:

1. You need standard contracts drafted or reviewed such as customer, vendor, or employment agreements.
2. Legal work is episodic rather than continuous.
3. The business is not highly regulated and risk tolerance is relatively straightforward.
4. Legal questions can be handled reactively as they arise.

At this stage, paying hourly or per-project for outside counsel is efficient and appropriate.

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When a Fractional General Counsel Starts to Make Sense

A Fractional GC becomes valuable when legal stops being occasional support and starts becoming core to how the business operates.

Common signals include:

1. Legal velocity matters and deals or partnerships slow down because every decision routes through outside counsel.
2. Judgment calls are frequent and teams need real-time guidance on risk tradeoffs, not just document review.
3. Regulatory exposure is increasing, especially when the core business depends on legality such as fintech, crypto, gambling, healthcare, or labor-heavy models.
4. You want a legal quarterback who can set standards, prioritize issues, and coordinate outside counsel instead of reacting case by case.
5. Outside counsel spend is increasing and much of it is repeat internal-type work.

This is often the point where companies want an internal legal partner but do not yet need or want a full-time GC.

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What a Fractional General Counsel Actually Does

A Fractional GC is not just higher-volume legal help. They provide ownership and leadership.

They typically:

1. Set contract standards, fallback positions, and escalation rules.
2. Act as the decision maker on legal risk rather than a messenger from outside counsel.
3. Own compliance posture and readiness including privacy, security, and regulatory expectations.
4. Manage and rationalize outside counsel usage.
5. Serve as the legal point person for executives, sales, product, and finance.

In practice, they function as the company’s General Counsel with reduced hours.

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Fractional Senior IC Or a More Senior Fractional General Counsel?

If you mostly need throughput on a defined queue (contract review, redlines, basic policy drafting) and decisions are straightforward, a Senior IC can often cover it. If legal work requires judgment, negotiation strategy, risk tradeoffs, and executive-level ownership across the company, you want a more senior Fractional General Counsel who can set standards, make calls, and manage outside counsel when needed.

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A unique consideration: Outside counsel leverage

A strong Fractional GC often acts as the control center for legal work, handling the day-to-day internally, then pulling in specialist firms only when necessary (employment, IP litigation, complex regulatory). This keeps legal spend predictable and makes outcomes more consistent.

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