Does Your Business Need an Outside General Counsel?

By Elidia Dostal, Partner

Whether you run a large corporation or you’re the owner of a small business, having an attorney to manage your legal needs and challenges is a must. From navigating regulatory compliance to managing contracts, and potential litigation, legal issues are a critical aspect of running a successful business. Businesses need a legal advisor available to help them draft agreements and navigate the complex California regulatory landscape, but may not have the need or budget for full-time in-house counsel. Yet involving an attorney at the front end of business transactions and compliance issues helps to avoid the high cost of litigation. For many companies, especially small to mid-sized ones, maintaining a full-time, in-house legal team can be costly and unnecessary. This is where an outside general counsel comes into play.

An outside general counsel is an attorney who provides a business with ongoing legal advice and services, but on a part-time or as-needed basis. These attorneys can help you draft contracts, policies and procedures that accomplish your business goals while mitigating the risk of litigation and regulatory fines. Here’s a look at some of the other reasons your business can benefit from an outside general counsel.?

Having an outside general counsel can be invaluable if your business has employees, or even engages with independent contractors. The attorney can make sure all your employment policies and procedures are in place and up to date. They can draft and maintain the employee handbook, which is essential to assure your company complies with all state and federal rules and regulations. The outside counsel will also know what to include in the handbook that can help protect your business in the future.?

They can help with company sexual harassment prevention training and review/write employement agreements, as well as termination agreements. They will also know how to write your independent contractor/sole proprietor contracts to assure you are not faced with a California Employment Development Department (EDD) audit.

An outside general counsel can also help you review or draft lease agreements, vendor contracts, construction contracts, and master service agreements. Staying compliant with California laws and regulations is a requirement of doing business. An outside attorney can help you develop and implement compliance programs, conduct internal audits, and provide training to your team. They can also help you stay ahead of changes in the law that might affect your business.?

An outside general counsel can also help your business as it grows and expands. Whether you’re expanding into new markets or acquiring another company, or preparing for a public offering, the attorney can provide strategic legal advice to navigate these changes and assure whatever transition you’re embarking on goes smoothly.

Whether it’s a large corporation or small local shop, running a business is a lot of work that requires focus and expertise. Don’t wait to work with an attorney until you may be facing a legal question or concern. Consider hiring an outside general counsel with the experience and knowledge to help you protect your business.?

Elidia C. Dostal is a business transactional and compliance attorney and partner with Vanst Law LLC. She serves business clients who understand the importance of involving an attorney at the front end of business transactions and compliance issues to avoid the high cost of litigation or regulatory fines. Elidia brings an expert understanding of the importance of thinking ahead to avoid potential future liabilities.