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Fractional GC vs. External Law Firm — A Cost Comparison

The Three Models

Every growing startup faces the question: how to organize legal support? The three main options are fundamentally different in cost structure, depth of involvement, and strategic value.

Model 1: Ad Hoc Law Firm (Hourly Billing)

How it works: You engage a law firm when a specific need arises — contract review, dispute, regulatory filing. Each matter is billed separately, typically by the hour.

  • Cost: PLN 350-800/hour depending on firm tier and specialization
  • Best for: Pre-seed startups with infrequent, specific legal needs
  • Weakness: No strategic oversight, no continuity, reactive rather than preventive. No one monitors the overall legal risk picture.

Model 2: Fractional General Counsel (FGC)

How it works: An experienced lawyer serves as your part-time legal director on a subscription basis. They attend key meetings, manage external counsel when needed, and provide strategic legal guidance.

  • Cost: PLN 4,000-20,000/month depending on hours package
  • Best for: Seed to Series B startups needing regular legal support without full-time cost
  • Strength: Combines strategic depth with cost efficiency. The FGC knows your business context, anticipates issues, and provides continuity.

Model 3: In-House General Counsel

How it works: A full-time lawyer on your payroll, dedicated exclusively to your company.

  • Cost: PLN 20,000-35,000/month (salary + employer costs), plus benefits and office overhead
  • Best for: Post-Series B companies with daily legal needs, 50+ employees, regulated industry
  • Weakness: Expensive, limited expertise breadth (one lawyer cannot cover all areas), difficult to hire the right person at startup salary levels.

Cost Comparison: Series A Startup (50 employees, fintech)

ScenarioAd Hoc Law FirmFGC StandardIn-House GC
Monthly cost~PLN 8,000-15,000PLN 7,000-10,000PLN 25,000-35,000
Annual cost~PLN 96,000-180,000PLN 84,000-120,000PLN 300,000-420,000
Strategic inputNoneHighHigh
AvailabilityBy appointmentPriority responseAlways available
Industry expertiseDepends on firmSelected specialistOne generalist

When to Transition Between Models

  • Pre-seed → Ad hoc — minimal legal needs, focus on product
  • Seed / first hires → FGC Lite — employment contracts, founder agreements, first commercial deals
  • Series A / growth → FGC Standard or Full — regulatory compliance, investor relations, multiple jurisdictions
  • Series B+ / 100+ employees → In-house + FGC or specialized firms — daily volume justifies a full-time hire

Considering a Fractional GC for your startup? Let's discuss which engagement model fits your stage.

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