Comparison
Quick answer
In-house counsel is a lawyer employed directly by a company — embedded in the business, available daily, and deeply familiar with operations. Outside counsel are law firms or independent attorneys engaged on a matter-by-matter or retainer basis. Most companies use both: in-house for day-to-day legal needs and outside counsel for specialized or high-stakes matters.
Early-stage and mid-market companies typically start with outside counsel and eventually hire in-house when legal volume justifies it. A good rule of thumb: when you're paying more than $200K/year in outside counsel fees for routine work, in-house counsel often provides better value. For specialized matters, outside counsel will always be part of the equation even after you have in-house legal.
Hourly rate
$150–$500/hr
Wide range reflects specialization — IP and corporate law command higher rates than general advisory
Per session
$200–$750
Typical for a 60–90 minute contract review, legal strategy, or compliance consultation
Project rate
$500–$5,000+
Flat-fee engagements for entity formation, contract drafting, or trademark filings