Independent Contractor Agreement

The Independent Contractor Agreement is a type of contract between any two parties that covers a specific project.

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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. 

What Is an Independent Contractor Agreement?

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.

Other Names for Independent Contractor Agreement

Depending on your state, an Independent Contractor Agreement may also be known as:

  • Subcontractor Agreement
  • Consulting Agreement
  • Contract Labor Form
  • Freelance Contract
  • General Contractor Agreement
  • 1099 Agreement
  • Client Freelancer Agreement

Who Needs an Independent Contractor Agreement?

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.

Why Use 360 Legal Forms for Your Independent Contractor Agreement

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Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Independent Contractor Agreement.

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Laws vary by location. Each document on 360 Legal Forms is customized for your state.

Fast and easy

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.

How to Create an Independent Contractor Agreement with 360 Legal Forms

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.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Independent Contractor Agreement?

To create your document, please provide:

  • Hiring Company/Individual: The person or entity hiring the contractor.
  • Independent Contractor: The person performing the services.
  • Effective Date: The date when the job is to start.
  • Services: The full scope of all the services provided by the independent contractor.
  • Compensation: The amount, method, and frequency of payment on the part of the hiring entity.
  • Duration: Detail when the contract ends and if it can be extended.
  • Benefits: Outline the services provided.
  • Other Provisions: Additional clauses and provisions both parties are in agreement of.
  • Signatures: Both parties are required to sign the deal.

Independent Contractor Agreement Terms

  • Independent Contractor/Freelancer: A person or entity hired as a non-employee contractor.
  • Assignment: The ability to assign the contractor to another party.
  • Binding Effect: The contractor remains valid even if the hiring entity or the contractor is replaced.
  • Governing Law: The state's law applied in the event of a dispute.
  • Severability: The quality of a document, such as an agreement or a lawmakers' bill, being valid even when some parts or provisions are struck out (valid without the severed parts or conditions).
  • 1099 Form: A series of IRS forms used to report miscellaneous income as applicable to freelancers and independent contractors.
  • Waiver: Surrendering certain rights in writing.
  • Warranties: The contractor guarantees to have all the necessary permits and licenses to complete the work they are hired to do.

Independent Contractor Agreement Signing Requirements

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.

What to Do with Your Independent Contractor Agreement

The hiring entity and independent contractor should each have a physical copy of the Independent Contractor Agreement.

Frequently Asked Questions

For the worker, there are many reasons why using an Independent Contractor Agreement is better than using an Employment Contract. You don’t have to have your income withheld every other week, for one. Also, independent contractors are usually subject to less micromanagement. For the hirer, if you don’t want to worry about hiring and firing, hiring an independent contractor means that the working relationship is over when the job is over. Overall, this arrangement requires much less paperwork than full-time employment. For example, Uber drivers are treated as independent contractors.

You might hesitate to hire an independent contractor out of fear that he or she might disclose confidential information. In such cases, you can include a confidentiality clause or create a separate agreement outlining that the independent contractor would not disclose any sensitive information learned at the threat of litigation and fines. It is best to do that in advance but, even if you already have an Independent Contractor Agreement, you can draft another Confidentiality Agreement and ask them to sign it.

The US copyright law states that the owner of the independent contractor's intellectual property is the hiring company. So, regardless of what you've created under the agreement, it belongs to the person or company hiring you. That covers everything including artwork, creative writing, and such. The only exception would be if the Independent Contractor Agreement has it tailored otherwise.

If the hiring company doesn't use an Independent Contractor Agreement, it risks being viewed as an employer in the eye of the law and the IRS. That means they could end up being responsible for a lot more, such as paying minimum wages and overtime. For both the contractor and the hiring company, not having the agreement means there are no guarantees that either party will abide by what is agreed on verbally.

Nowadays, it's relatively easy to find independent contractors for any work. There are many online sources where you can search for people offering their service in the short term. Usually, you will be able to see the fees and rates and the full scope of what they offer. Alternatively, you can ask for recommendations from other companies and individuals.

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Applicable to all 50 states
Applicable to all 50 states

Our documents are vetted by lawyers and are applicable to all 50 states.