When to Hire a Fractional Business Lawyer Instead of a Full-Time Counsel

Nov 20

Most Growing Companies Face the Same Legal Dilemma

You have reached the point where legal mistakes are no longer acceptable, but you are not ready (or able) to add a six-figure in-house counsel to payroll. Contracts are piling up. Compliance questions arise weekly. Investors expect proper governance. You need senior legal guidance, yet a full-time hire feels premature or financially impossible.

This is exactly where a fractional business lawyer, also called fractional General Counsel, becomes the perfect solution.

I am Angela Papalia, a fractional General Counsel and remote business lawyer serving companies across Canada. I help founders and leadership teams decide when fractional counsel makes more sense than full-time, and I often become that fractional partner myself. Below are the clearest signals that fractional is the right move for your business right now.

1. Your Legal Volume Is High but Not Constant

You need consistent senior-level advice, yet you do not have eight hours of legal work every single day. A full-time General Counsel would spend significant time underutilized or doing junior-level tasks. Fractional counsel scales precisely to your actual need, whether that is 10 hours a month or 60 hours during a financing round.

2. You Cannot Yet Justify $250,000–$450,000+ in Salary and Benefits

A seasoned General Counsel in Canada easily commands $250,000 to $450,000 or more in total compensation, plus benefits, bonus, and equity. Most companies under $25–30 million in revenue struggle to see clear ROI at that cost. Fractional arrangements typically run 20–40 % of a full-time salary while delivering the same (or greater) seniority.

3. You Are Raising Capital or Preparing for Exit

Investors and acquirers expect clean contracts, proper corporate records, and defensible governance. A fractional General Counsel can step in for three to twelve months, fix historical issues, implement best practices, and leave you with a structure that survives due diligence. You pay only for the project, not a permanent headcount.

4. You Operate a Remote or Distributed Team

When your team is already virtual, adding an in-house lawyer who expects a downtown office creates friction. A fractional lawyer integrates seamlessly into Slack, Notion, and Google Workspace, providing advice exactly where and when you need it.

5. You Want Senior Expertise Without Junior Overhead

Full-time hires often require paralegals, junior associates, or administrative support. Fractional counsel arrives as a ready-to-go senior practitioner. You get 15–25 years of experience from day one, with no training curve and no extra salaries.

6. Cash Flow and Runway Are Top Priorities

Startups and scale-ups live or die by runway. Committing to a full-time legal salary plus benefits can burn 18–36 months of cash before you are truly ready. Fractional counsel preserves capital while still protecting the business legally.

7. You Have Seasonal or Project-Based Legal Needs

Common examples include:

Annual contract renewals.
Employee option plan rollouts.
Privacy policy and PIPEDA compliance updates.
Cross-border expansion.

A fractional lawyer ramps up during intense periods and scales back when the work is complete.

When Full-Time Counsel Eventually Makes Sense

To be clear, there is a tipping point where full-time becomes the better choice:

Consistent daily legal workload (30–40+ hours per week).
Highly regulated industries requiring constant on-site presence.
Revenue typically north of $50–100 million (varies by sector).

Until you clearly cross that threshold, fractional is almost always the smarter financial and operational decision.

How My Clients Decide

I walk every prospective client through a simple scorecard:

Current monthly legal hours required.
Projected hours over the next 12–24 months.
Budget availability for full-time compensation package.
Strategic milestones (financing, M&A, IPO).

In 9 out of 10 cases for companies under $30 million revenue, fractional wins decisively.

Ready to Get Senior Legal Guidance Without the Full-Time Commitment?

A fractional business lawyer gives you everything you need today, and the flexibility to scale tomorrow.

If any of the scenarios above sound familiar, let’s talk. A 20-minute call is usually enough to map out whether fractional counsel is your best next step and what it would look like for your company or visit my remote business lawyer toronto page for more details.

Angela Papalia .