Create an Independent Contractor Agreement with LegalZone

What Is an Independent Contractor Agreement?

Also referred to as a 1099 agreement, subcontractor agreement, consulting agreement, freelance contract, general contractor agreement, or consulting services agreement, an independent contractor agreement specifies the business relationship between a business and a freelance worker.

What Is an Independent Contractor Agreement Used For?

An independent contractor agreement is used for detailing the services provided by the independent contractor, the terms and duration of the project, payment information, and identifying confidentiality, non-solicitation, and dispute resolution clauses.

What Is the Difference Between a Contract Employee and an Independent Contractor?

Contract Employee

Employer controls the specification of the employee’s work
Employer determines the employee’s wages and withholds taxes from their pay
Employees are eligible for benefits
Employees sign an employment contract
Employer may review employee’s work
Employee is trained in-house
Employer creates the job description

Independent Contractor

Freelancer can have multiple clients
Freelancer sets their prices and sends invoices to clients
Freelancer provides tools and equipment
Clients have little input on the process
Freelancer works on a fixed-term basis
Freelancer can hire employees or subcontractors to help complete the project
Freelancer is not eligible for benefits

When Should I Use an Independent Contractor Agreement?

If you’re an independent contractor starting a project for an employee, you should request or present an independent contractor agreement to protect your rights as a freelancer.

If you’re a business owner interested in hiring a freelance worker for a job, you should draft an independent contractor agreement to outline the terms and expectations of the project.

What Does an Independent Contractor Agreement Do?

Drafting an agreement between your business and the freelancer specifies that the independent contractor is not a full-time employee for the company. The contract provides a legal document that states that the company does not have tax obligations related to this person.

Additionally, the contract specifies the length, obligations, and payment for the project. This contract protects the independent contractor because it allows them to accept other clients and execute the project however they want as long as the final product fits the description in the contract.

Why Do I Need an Independent Contractor Agreement?

For business owners: it will protect your business interests and ensures the freelancer understands the full scope of the job. An official contract will protect your business from any issues with liability, assets, and proprietary information. Having a contract on file is beneficial just in case you’re audited by the IRS or need to go to court.

For freelancers: it protects you from being underpaid and secures your rights as an independent contractor. If you enter negotiations with a draft for a contract, it shows your professionalism and your willingness to commit to the engagement.

What Should Be Included in an Independent Contractor Agreement?

A description of the job
Payment structure
Time frame or official end date
Details on who will provide specific equipment
Ownership of the product created
Confidentiality agreements

Generate an Independent Contractor Agreement with LegalZone

Whether you’re a business seeking to hire a freelance worker or an independent contractor getting ready to start a job with a new client, we can help you draft an independent contractor agreement that covers all your bases.

Our LegalZone.com website will help you create a document that meets all your specifications. LegalZone offers affordable and accessible access to attorneys if needed.

If you have more questions about whether an independent contractor agreement is right for you or what you should include, reach out to one of LegalZone’s customer support specialists.

Start Your Independent Contractor Agreement today on LegalZone.com