You’re scaling past $2M in revenue. Legal complexity is real. Contracts are getting bigger, your team is growing, and you’re starting to think: “Maybe it’s time to hire a general counsel.”
The number you’ve probably heard is $250,000. Base salary for a solid GC at your stage.
Here’s what nobody tells you: that’s not the number.
The Real Math
Let’s build the actual cost of a full-time GC hire:
Base salary: $250,000
Benefits package (health insurance, dental, vision, 401k match, life insurance): $45,000-$55,000
Overhead (office space, equipment, software licenses, HR administration): $20,000-$25,000
Recruiting fees (typically 20-25% of first-year salary): $50,000-$62,500 – paid upfront, before day one
Severance exposure (if the hire doesn’t work out): $20,000-$50,000
Total annual cost: $345,000-$400,000+
And that’s before you account for the 3-6 month recruiting process, the onboarding ramp while you’re still paying outside counsel for urgent matters, and the very real risk that the hire isn’t the right fit.
I’ve watched founders go through this process twice in two years. The second recruiting cycle is just as expensive as the first.
When Full-Time GC Actually Makes Sense
I want to be honest here, because the right answer depends on your situation.
A full-time general counsel makes sense when you’re at 100+ employees or spending $500,000+ annually on outside legal counsel. At that scale, the economics flip. You have enough legal volume to justify a dedicated hire, and the coordination complexity of managing multiple outside firms creates its own inefficiency.
If you’re between $1.5M and $3M in revenue with 10-75 employees, you’re not there yet. You have real legal needs – contracts, employment issues, IP questions, board governance – but not enough volume to justify a $400,000 annual commitment to a single generalist.
That gap is exactly where most growing companies get stuck.
The Alternative Math
Our Premium tier is $5,000 per month – $60,000 annually.
Here’s what that comparison actually looks like:
- $60,000 per year vs. $345,000-$400,000 per year
- Three specialized attorneys (business strategy, IP expertise, employment law) vs. one generalist
- Month-to-month commitment vs. employment contract with severance exposure
- Available immediately vs. 3-6 month recruiting process
- No recruiting fees vs. $50,000+ upfront before anyone starts
The 8 hours of legal work included monthly at our standard rate covers $5,200 in value before you’ve used a single additional service. Add quarterly board meeting attendance, IP portfolio oversight, and priority response times, and the economics get clearer.
But the number that matters most to me is the specialization question.
Most growing companies need a business lawyer AND an IP lawyer AND an employment lawyer. A single generalist GC – even a good one – carries real gaps. Elliott Alderman brings 40+ years of IP experience, including work as a former U.S. Copyright Office attorney. Claudia Castillo specializes in employment law. I handle business strategy and IP integration. You get three specialists, not one generalist who does everything adequately.
The Right-Sized Answer
Full-time GC is enterprise infrastructure. It makes sense at enterprise scale.
If you’re between $1.5M and $3M in revenue, you need something between “figure it out yourself” and “hire a $400K executive.” That’s not a compromise – it’s actually the better solution for your stage.
Month-to-month commitment means you’re never locked in. If your needs change, we adjust. If you hit 100 employees and the economics flip, we’ll tell you that too. Our job is to be the right partner for your stage, not to sell you more than you need.
That’s what “right-sized” actually means.
If you’re weighing a GC hire against fractional counsel, let’s map the numbers for your specific situation. A legal strategy review takes 30 minutes and gives you a clear picture of what you actually need – and what it actually costs.
[Schedule your legal strategy review at garcia-zamor.com]
The Garcia-Zamor Law Firm delivers outsourced in-house counsel combining business law and intellectual property expertise. Ruy Garcia-Zamor leads business growth strategy, Elliott Alderman (former U.S. Copyright Office attorney, 40+ years IP experience) handles intellectual property, and Claudia Castillo specializes in employment law. We’re the fractional GC for growing companies – protecting both your operations and your innovations. Visit garcia-zamor.com or call (410) 531-9853.
