Building Your Legal Function
Every growing business eventually asks: should we build an in-house legal department or engage outside counsel? The answer depends on volume, complexity, and stage.
| Factor | Outside Counsel (FGC) | In-House Department |
|---|---|---|
| Cost | $48K–$96K/year | $400K–$800K+ (team) |
| Expertise Breadth | Multi-disciplinary | Limited to hires |
| Scalability | Adjust instantly | Hiring/firing cycle |
| Industry Knowledge | Cross-client insights | Single company |
| Availability | Priority access | Dedicated full-time |
The Verdict
Outside counsel through FGC is optimal for $1M–$50M companies. In-house departments become cost-effective above $50M when legal volume justifies multiple full-time hires. Many $50M+ companies use a hybrid model. See Outside GC Services.
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Lee Clark
Licensed ID & CA. Arbitrator, Judge Pro Tem, mediator since 2008.
Conor Meyers
CEO/GC of ACE Building Envelope Design. CLO of ZEA Biosciences.