There is a point in a company's growth where legal questions stop being occasional and start being constant. Contracts pile up. Compliance deadlines appear on the calendar. Someone asks, "Do we need a lawyer for this?" -- and the answer is yes, again.
Hiring a full-time general counsel feels like overkill. But calling an outside law firm every time a question comes up feels expensive and disconnected. This is the gap that fractional general counsel fills.
A fractional general counsel is a lawyer who serves as your company's in-house legal advisor -- but part-time. Instead of sitting in your office five days a week, they work with you on a set schedule, typically a certain number of hours or days per month.
The word "fractional" just means you are getting a fraction of a full-time role. The same way a company might hire a fractional CFO or fractional CMO, a fractional general counsel gives you senior legal leadership without the cost of a full-time executive.
This lawyer is not just answering one-off questions. They learn your business. They understand your contracts, your vendors, your regulatory environment, and your goals. They sit in on board meetings and leadership calls. They become part of your team -- just not every day.
These terms overlap, and that causes confusion. Here is the difference.
Fractional general counsel is the role described above. A part-time in-house lawyer embedded in your company. They typically work with a small number of clients so they can go deep on each one.
Outside general counsel is essentially the same concept with a different name. Some lawyers and firms use "outside general counsel" to describe the same arrangement -- a dedicated attorney who acts as your in-house counsel but works from outside the company. At Turley Law, our outside general counsel service is built on exactly this model.
A law firm on retainer is different. A retainer usually means you pay a firm a monthly fee to guarantee access to their lawyers. But those lawyers may not know your business deeply. You might talk to a different associate each time. The relationship is transactional, not embedded.
The key difference is depth. A fractional or outside general counsel knows your company the way an employee would. A law firm on retainer knows your company the way a vendor would.
For a detailed breakdown, our comparison page walks through these differences side by side.
The day-to-day work varies by company, but here are the most common responsibilities.
Contract review and drafting. Vendor agreements, customer contracts, NDAs, partnership deals, licensing terms. A fractional GC reviews these before you sign and drafts them when you need custom language.
Compliance monitoring. Depending on your industry, there may be federal, state, or industry-specific regulations your company must follow. A fractional GC tracks what applies to you and makes sure you stay current.
Employment matters. Offer letters, employee handbooks, termination procedures, non-compete agreements, workplace policies. Employment law touches every company with staff, and mistakes here are expensive.
Board and investor preparation. If your company has a board of directors or outside investors, your fractional GC helps prepare board materials, reviews governance documents, and advises on fiduciary obligations.
Vendor and partner negotiations. When a deal matters, having a lawyer at the table changes the outcome. A fractional GC negotiates on your behalf or coaches your team on what to push back on.
Risk assessment. Before your company enters a new market, launches a new product, or signs a major deal, a fractional GC identifies what could go wrong and how to protect against it.
Managing outside specialists. If you need a patent attorney, a tax lawyer, or a litigator for a specific matter, your fractional GC coordinates that work. They act as the legal quarterback -- hiring, directing, and reviewing the work of specialist attorneys so you do not have to.
Not every company needs a fractional general counsel. But several signals suggest you have reached the point where it makes sense.
Your legal spending is above $5,000 per month. If you are already paying hourly legal fees that add up to $5,000 or more each month, a fractional GC can often provide more coverage for the same cost -- or less.
You deal with contracts every week. If signing, reviewing, or negotiating contracts is a weekly occurrence, you need someone who understands your standard terms and can move quickly without starting from scratch each time.
You face regulatory questions regularly. Companies in healthcare, financial services, technology, education, or any regulated industry hit compliance questions constantly. A fractional GC who understands your regulatory landscape prevents problems before they start.
You have or are preparing for a board. Board governance, minutes, resolutions, and fiduciary duties require legal guidance. If you have outside investors or are raising a round, a fractional GC helps you get the legal side right.
Your team is growing past 15-20 people. At this size, employment law issues become regular. Hiring, firing, benefits, policies, remote work rules -- all of it needs legal review.
You are entering new markets or launching new products. Expansion brings new legal exposure. Different states have different rules. New products may face regulations your current products do not.
A fractional general counsel is not the right fit for every company. Here is when it is probably too early.
You are pre-revenue. If your company is not generating revenue yet, your legal needs are likely limited to formation documents and maybe a few contracts. A one-time engagement with a business attorney is more appropriate than a monthly retainer.
You have fewer than five employees. Very small teams usually do not generate enough legal work to justify ongoing counsel. You can handle occasional questions with a traditional attorney-client relationship.
Your legal needs are rare and narrow. If you only need a lawyer once or twice a year for a specific type of matter -- say, an annual lease renewal -- a fractional GC is more than you need.
You are not willing to invest in the relationship. A fractional GC works best when they are included in your operations. If you just want someone to call when something goes wrong, a law firm on retainer is a better fit.
This is usually where the decision gets clear.
A full-time general counsel commands a salary between $200,000 and $350,000 or more, depending on experience and location. Add benefits, equity, bonuses, and overhead, and the total cost easily reaches $300,000 to $500,000 per year.
A fractional general counsel typically costs between $3,000 and $10,000 per month, depending on the scope of work and the lawyer's experience level. That works out to $36,000 to $120,000 per year.
For most growing companies, that gap is significant. You get the same caliber of legal leadership at a fraction of the cost. And because fractional GCs work with multiple companies, they bring a breadth of experience that a single full-time hire may not have.
The comparison is not just about salary. A full-time GC also means recruiting costs, management time, office space, and the risk of a bad hire in a critical role. A fractional arrangement lets you test the relationship and adjust the scope as your needs change.
Every fractional GC structures their practice a little differently, but the general model looks like this.
Hours per month. Most engagements start with a set number of hours -- often 15 to 40 hours per month. Some fractional GCs work on a flat monthly fee; others bill by the hour within an agreed range.
Communication cadence. You should expect regular check-ins, usually weekly or biweekly. In between, your fractional GC is available by email, phone, or your company's messaging platform (Slack, Teams, etc.).
Scope of work. At the start of the engagement, you and your fractional GC define what falls inside and outside the scope. Routine contract review, compliance, and advisory work are typically included. Large transactions, litigation, or specialized matters may be billed separately or referred to a specialist.
Integration with your team. A good fractional GC joins your relevant meetings, has access to your document systems, and builds relationships with your leadership team. The more embedded they are, the more effective they become.
Flexibility. One of the main advantages is the ability to scale up or down. Busy quarter with a lot of deals? Increase the hours. Quiet stretch? Dial them back. This flexibility is something a full-time hire cannot offer.
Not every experienced lawyer makes a good fractional general counsel. Here is what to look for.
Industry experience. A fractional GC who has worked with companies in your industry will ramp up faster and spot issues that a generalist might miss. If you are a technology company, you want someone who understands SaaS agreements, data privacy, and intellectual property. If you are in healthcare, you want someone who knows HIPAA and regulatory compliance.
Availability and responsiveness. Ask how many clients they work with and what their response time looks like. If they are juggling too many companies, you will feel it when you need them and they are not available.
Technology comfort. Your fractional GC should be able to work within your systems -- your document management, your communication tools, your contract platforms. If they insist on doing everything by email and paper, that is a red flag for a modern company.
Communication style. You want a lawyer who explains things clearly, not one who hides behind legal jargon. Your leadership team needs to understand the advice they are getting, not just trust it blindly.
References from similar companies. Ask for references from companies that look like yours -- similar size, similar industry, similar stage of growth. A great fractional GC for a 200-person manufacturing company may not be the right fit for a 20-person software startup.
If the description above sounds like what your company needs, the next step is a conversation. Not a sales pitch -- just an honest assessment of where you are, what your legal needs look like, and whether a fractional or outside general counsel arrangement makes sense.
At Turley Law, we work with growing companies as their outside general counsel, providing the same embedded legal leadership described in this article. We learn your business, join your team rhythms, and handle the legal work that keeps your company protected and moving forward.
If you are not sure whether you are ready, that is fine. Take our free assessment and we will help you figure out where you stand -- no obligation, no pressure.
The question is not whether your company will need dedicated legal counsel. The question is whether it needs one now. And if the signs above sound familiar, the answer is probably yes.