Many people work as independent contractors in services to others. While one person can be an independent contractor, so can a company.
For example, if you need to hire someone to paint your kitchen, that can be a self-employed individual or a painting company. You could be a freelancer or own a company working as an independent contractor. Either way, you will use an Independent Contractor Agreement to outline the terms settled.
An independent contractor is not an employee. If a company is caught presenting an employee as an independent contractor, they could be in trouble with the IRS or up to state authorities.
The Independent Contractor Agreement is usually for a period or single service. However, it could be drafted when you need recurring services from the same independent contractor.
Both the hiring entity and the independent contractor come up with the agreement.
Depending on your state, an Independent Contractor Agreement may also be known as:
Anyone who needs the services of an independent contractor benefits from having the Independent Contractor Agreement. Alternatively, as mentioned, if you work as an independent contractor or own such a company, you can use the document to protect your interests and the other party's.
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All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.
If you're a freelancer, you may need to develop an Independent Contractor Agreement all the time. It's a savvy business practice to ensure you get paid for the work done. This is best accomplished starting with a template.
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To make it legally binding, both parties have to sign the agreement. Notarization is not required, but if either party requests it, that may make the signature harder to challenge in the future.
The hiring entity and independent contractor should each have a physical copy of the Independent Contractor Agreement.
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