Business owners often find themselves burdened with numerous legal responsibilities that cannot be avoided. These tasks can vary in complexity, but as the business expands, so does the volume of legal work.
From ensuring compliance to managing contracts, staying abreast of legal obligations can become a full-time job. Without a legal background, the risk of errors increases significantly.
This is where having corporate counsel on your team can be invaluable.
What is corporate counsel?
Corporate counsel are skilled lawyers who work directly for businesses rather than at a legal firm with multiple clients. Their primary role is to provide legal advice on business operations, compliance matters, and handle necessary paperwork and regulatory tasks.
In addition to their core responsibilities, corporate counsel should collaborate closely with the human resources (HR) team to ensure legal compliance. Tools like HR compliance software are essential for staying updated on regulatory laws and managing related tasks.
Industries that benefit from corporate counsel
Every industry can benefit from having in-house legal counsel instead of relying on external law firms. Industries with frequent regulatory changes can find having corporate counsel more cost-effective in the long run. Some common industries that utilize corporate counsel include:
Food and beverage: Restaurants, bars, wineries, and food manufacturers are subject to various regulations concerning operations, sales, and customer safety.
Healthcare: Highly regulated, healthcare companies like medical clinics, dental practices, and cosmetic centers benefit from in-house legal representation.
Construction: Legal issues are common in the construction industry, from planning to post-construction problems, making corporate counsel essential.
Real estate: Real estate firms deal with extensive legal paperwork and potential issues, making corporate counsel crucial for development, sales, and property management companies.
Manufacturing: Legal support is essential for creating products, protecting designs, vendor agreements, and final sales contracts.
Cannabis: For legal cannabis businesses, compliance with regulations is crucial, making corporate counsel invaluable for licensing and compliance issues.
What does corporate counsel do?
Corporate counsel’s role is similar to other lawyers, but they work exclusively for the business they represent. Their responsibilities include negotiating contracts, assessing legal liabilities, researching acquisitions, filing patents, reviewing company documents, handling litigation, and addressing legal queries from internal departments.
Benefits of corporate counsel
Having a team of legal advisors on hand offers numerous benefits to businesses across industries. Corporate counsel can provide cost-effective, timely advice, business-specific expertise, and proactive compliance and risk management.
Cost-effective
Employing in-house legal counsel can reduce costs compared to outsourcing to external firms, as there are no hourly fees and employees can seek support without budget constraints.
Timely advice
Immediate legal advice is available for urgent matters, preventing issues from escalating and avoiding rush fees. Corporate counsel’s availability ensures prompt assistance without delays.
Business-specific expertise
Corporate counsel’s familiarity with the company’s operations and industry enables quick identification of risks and compliance changes, benefiting both the legal team and the business.
Proactive compliance and risk management
In-house counsel can address regulatory updates promptly, mitigate risks, and draft contracts and policies swiftly, reducing the likelihood of legal disputes or compliance violations.
Keep your own counsel
Focus on growing your business while experts handle legal matters. With an internal legal team, potential issues can be resolved proactively. It’s that simple.
Empower your corporate counsel with legal practice management software to streamline legal documentation storage and tracking for the entire company.
