Startup CEOs juggle a lot—raising funds, launching products, and building teams. Legal concerns might not seem urgent at first, but as the company grows, they quickly pile up. This is where a general counsel for startups comes in. Knowing when to bring one on board is key to avoiding risks and scaling with confidence.

Early Days: Relying on Outsourced Help

Most startups begin with outside legal help, using law firms for specific needs like setting up the company or drafting contracts. This approach works well when the legal workload is light and predictable.But as startups grow, they hit a point where outsourced help isn’t enough. Legal questions pop up more often, and costs start adding up. That’s when it’s time to consider hiring someone in-house.

Signs It’s Time to Hire

1. Legal Workload Keeps Increasing

As a rule of thumb, if a startup has around 30–40 hours of legal work each week, it’s time to think about working with a general counsel for startups. Managing contracts, compliance, and intellectual property becomes a full-time job.For example, a tech startup launching products in different markets may need someone to review contracts, ensure privacy compliance, and manage trademarks—all at the same time. Outsourcing everything would be expensive and inefficient.

2. External Legal Costs Are Adding Up

If your startup is spending over $50,000 annually on outside legal services, it might be more cost-effective to hire an in-house legal counsel startup specialist. A full-time GC not only saves money but also provides consistent advice tailored to the company’s needs.

Growth Brings Complexity

Startups hit different stages of growth. Each phase brings new legal challenges:

• Raising Funds: Investors often ask for detailed contracts and financial audits.
• Hiring Employees: Expanding teams means drafting employment agreements and ensuring compliance with labor laws.
• Launching Products: Entering regulated industries or global markets requires careful planning to avoid fines or lawsuits.

During these transitions, a general counsel for startups ensures the company is legally prepared for what’s ahead.

Managing Risk at Scale

3. Complex Legal Challenges

Startups facing complex legal issues—like mergers, acquisitions, or navigating strict regulations—benefit from having in-house expertise. A GC can quickly address problems, reducing the risk of delays or costly mistakes.For instance, a startup preparing for an acquisition deal needs to ensure that intellectual property, contracts, and compliance are all in order. A GC handles these details, making the process smoother.

4. Becoming a Strategic Partner

A GC isn’t just a lawyer—they’re a key part of the leadership team. They help CEOs make decisions that align with the company’s goals while staying legally safe. Whether it’s deciding how to structure a funding round or expanding into new markets, a GC ensures that legal risks are always considered.

Cost vs. Value

Some startups hesitate to hire a GC because of the cost. However, bringing in a legal counsel startup early can save money in the long run. Without proper legal guidance, startups risk fines, lawsuits, or losing valuable intellectual property.The right GC not only prevents these problems but also helps the company grow smarter by streamlining processes, negotiating better deals, and avoiding unnecessary risks.

When Should You Act?

Timing is everything. Startups should consider working with a general counsel for startups when:

• Legal work exceeds 30 hours a week.
• Annual external legal fees hit $50,000 or more.
• The company enters a growth phase with more employees, products, or markets.
• Complex legal challenges like acquisitions or regulatory compliance arise.

Waiting too long can lead to rushed decisions, higher costs, and avoidable problems.

Finding the Right Fit

Hiring a GC isn’t just about filling a role—it’s about finding someone who understands the startup world. A legal counsel startup should have:

• Broad legal knowledge across contracts, compliance, and intellectual property.
• Experience working with fast-growing companies.
• A proactive approach to identifying and solving problems.

Startups thrive on speed and adaptability, so a GC who fits into the company culture is essential.

Final Thoughts

A general counsel for startups is more than just a lawyer—they’re a strategic asset for growth. By managing legal risks, reducing costs, and providing guidance during critical decisions, they give CEOs the freedom to focus on building the business.For startup CEOs, hiring a GC isn’t about adding another expense—it’s about investing in the company’s long-term success. Knowing when to make this move can mean the difference between thriving and struggling through legal challenges.