Business Finance: Why Having an In-House Lawyer Saves Your Company Money
For small businesses with minimal needs for specialized services, outsourcing the work makes sense. However, as a business grows and its needs adjust, it may be more beneficial to hire in-house lawyers than to outsource the work on a regular basis.
When you understand more about the benefits of having in-house legal staff, you may be able to better determine when the time has come for your business to hire an in-house lawyer.
The Ability to Avoid High Hourly Rates
Whether a contracted attorney charges $300 per hour, $500 per hour or more, you may pay a small fortune in legal fees throughout the year.
You may call an attorney for a quick legal question, and a five-minute conversation may easily cost the company more than $100. Legal fees can quickly mount when you use contracted services with an hourly rate.
With in-house staff, you will pay a salary to your attorney and will have unlimited access to that attorney for all services, advice and more that is needed. When you regularly need legal services, in-house staff may be more affordable than contracted rates.
The Financial Benefit of Good Legal Advice
Many business owners and managers may seek legal advice periodically or on a regular basis, and this advice may be used to help them make great business decisions, minimize liability, structure contracts and more. Ultimately, this advice can help the business to avoid spending money unnecessarily and even to save money in certain instances.
When legal fees are too high, some business owners and managers may avoid seeking out the advice they truly need. In-house legal services make it more affordable to get advice as needed.
The Advantage of Quick Access to Legal Services
There are some instances when time is of the essence, and you may need quick access to legal services. It may not be ideal to wait for a lawyer to return your call or to wait for a week or longer for a scheduled meeting. Perhaps you need a contract drafted or reviewed immediately. With in-house staff, you may have greater access to immediate legal services as needed as well as the ability to control the attorney’s priorities, and this can be financially advantageous in some cases.
The Ability to Control Overhead
Because legal needs can vary from time to time, it can be difficult for businesses to properly budget and plan for this expense. More than that, because legal fees can be so expensive, this fluctuating expense can often be a financial burden and can have a negative impact on planning and budgeting.
When you have in-house staff, you know the cost of legal services for the year, and this will remain static regardless of how significant your legal needs are for that time period. You will not need to worry about exceeding your budget, and you can make better financial plans because of this.
According to the Dore Law Group, a group of business lawyers in Houston, hiring a lawyer is a major decision to make, and it should not be taken lightly. A smart idea is to consider your past years’ need for legal services and to consider the cost of those services. Also, project your need for legal services going forward, and determine the amount of work that a single in-house lawyer may be able to complete for you during the year.
In-House lawyer
In addition, consider how having immediate access to legal services may be a financial benefit to you. There are numerous factors to consider before hiring an in-house lawyer, so you should take time to weigh the pros and cons to determine if now is the right time to take advantage of having an in-house lawyer working for you.
Category: Business
