How Can a Small Business Benefit from a Limited General Counsel?

 Posted on September 06, 2024 in Business Formation

Small businesses often struggle to handle issues that arise while working within a limited budget. These issues include legal affairs, which smaller companies sometimes overlook. They may think it is an afterthought or may hope any legal concerns come up later when there are more resources.

Larger companies typically can hire a general counsel, also known as a chief legal officer. This is an attorney who serves as the company’s main lawyer and is responsible for the legal aspects of the business. Smaller businesses, however, often cannot afford to hire general counsels. Instead, they may choose to hire a Texas business formation attorney as a limited general counsel for their legal needs.

What Is a Limited General Counsel?

A limited general counsel functions similarly to a general counsel. However, instead of being a full-time employee, the attorney might serve the company on a part-time basis. Sometimes, a limited general counsel will provide services on an ad-hoc basis, meaning he or she will only address issues as they arise. This is usually a more cost-effective option than a general counsel and, therefore, a more attractive one for small businesses.

What Does a Limited General Counsel Do?

A limited general counsel fulfills the company’s legal needs. These often include:

• Providing legal advice and guidance to the company’s management
• Drafting, reviewing, executing, and negotiating the company’s contracts between partners, customers, suppliers, and employees
• Responding to legal threats and creating legal strategies, including litigation if necessary
• Guiding the company in its compliance with state and federal laws
• Maintaining records of legal and official documents

How Can a Limited General Counsel Benefit a Small Business?

All of the above functions are helpful and often necessary. However, limited general counsels help small businesses specifically by ensuring they comply with laws and regulations. This is particularly useful for startups that are unaware of industry regulations and standard practices. With the guidance of a limited general counsel, smaller companies can avoid unnecessary penalties and fines that can result from non-compliance.

Furthermore, new companies often require more legal expertise when they start out. From the formation of the business to long-term strategies, managers of startups can benefit from receiving regular advice from a limited general counsel. This can save time and money later on by avoiding unnecessary legal complications.

Contact a Fort Worth, TX Limited General Counsel Attorney

A common mistake small businesses make is leaving legal issues unaddressed and instead focusing on revenue or other areas of the business. Failing to hire a limited general counsel can become more expensive in the long run when overlooked details balloon into larger legal concerns. At Gonzalez Law, PLLC, we understand both the legal and financial challenges of running a small business, and we look forward to helping you address them. Schedule a free consultation with a Fort Worth, TX business formation lawyer by calling 817-349-7330 today.