ContractsCounsel has assisted 284 clients with independent contractor agreements and maintains a network of 194 employment lawyers available daily. These lawyers collectively have 55 reviews to help you choose the best lawyer for your needs.
An independent contract agreement is a contract between a freelancer and a company or client outlining the specifics of their work together. Companies use it as a way to set expectations, clarify roles, and use appropriate documents for taxes and record-keeping purposes.
Legally, a 1099 independent contractor must still file taxes for any income they earn as an independent worker. This is why the 1099 employee form is important on top of an independent contractor agreement.
Here are 8 things you should always include in an independent contractor agreement when hiring an independent contractor or signing a contract as a freelancer.
Start the document by describing the independent contractor and to whom they will provide services. For example, a contractor may work for an individual, or they could offer their services to a company on a freelance basis.
Because they are not employees, companies cannot mandate working hours or schedules for independent contractors. However, they can require a schedule for their project.
Establish a time frame for the services and set a deadline for any deliverables.
The time and length of the project are important features that will make the contract legally binding.
Without a specified time and end date, it will become more difficult for either party to request payment or services when needed.
Here is an article about independent contractors and how they work.
A self-employed person or business entity must describe the services they will provide for a company. Likewise, a company issuing a contract may outline the services they are hiring the contractor to perform.
To comply with independent contractor tax laws, the company must provide a 1099 independent contractor form for services exceeding $600.
The 1099 form is not the same as an independent contractor agreement. The agreement is the contract that outlines things such as:
Keep the description of services simple and straightforward. Avoid generalizations like “marketing services” or “web design.” Instead, explain what specific tasks each service package includes.
Here is an article with types of independent contractor services.
Meet some lawyers on our platformDescribe payment terms for the contractor. For example, they may be paid upfront, receive a partial payment at the contract's start, or require a deposit for their services.
Some independent contractors work on an ongoing basis, so they receive monthly payments similar to that of an employee.
However, there are many distinctions between an independent contractor vs. employee payment rights. For example, the employer does not have to provide a freelancer or contractor benefits like health insurance. They can also choose to pay them for a service outright or hourly.
As for whether you can pay an independent contractor hourly or per diem, the answer varies by industry, service, and individual contractor. In addition, the independent contractor agreement cost will vary based on the length of the project and contractor’s rates.
The best thing for all parties involved is to be clear in the agreement about how much the contractor will be paid when they will be paid, and how they will receive payment.
Here is an article about the best ways to pay independent contractors.
Because an independent contractor may have a working arrangement that grants them access to company data, confidentiality clauses are important.
A confidentiality agreement can protect certain parts of the project or company’s operations.
Here is an article about what you need to know about confidentiality clauses.
You may sometimes give yourself or the contractor the right to terminate your agreement early. In addition, other circumstances, such as a breach of contract or failed deliverables, can grant the hiring party the right to terminate their agreement.
Likewise, failure to pay or respond within a certain timeframe can give the freelancer the right to terminate the agreement.
While outside circumstances may influence the outcome of a project, there should be measures in place to protect both parties’ best interests.
You can also state that the contract will expire, e.g., naturally terminate, once the client has received work and fully paid the independent contractor.
You should specify which state governs the terms and conditions laid out in the contract. This is especially relevant if the independent contractor and hiring party live in different states.
A state of governance can significantly impact a party’s ability to file or win a lawsuit. For example, the governing laws in your state may protect you in ways the freelancer’s state does not.
It is easy to state the governing jurisdiction. For example, you may write something such as:
“By signing this agreement, all parties agree to adhere to the laws and regulations of the United States of America, and the state of Massachusetts”
Contracts are not legally binding unless competent parties sign them.
Legal signatures can be signed in person or remotely through a secure electronic signature service.
An e-signature allows someone to type their name on an electronic document and submit it, rather than physically signing anything in ink.
Be sure to date all signatures, whether done in person or electronically.
Here is an article on electronic signatures and legality in the United States.
Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Texas licensed attorney specializing for 22 years in Business and Contract law with a focus on construction law and business operations. My services include General Business Law Advisement; Contract Review and Drafting; Legal Research and Writing; Business Formation; Articles or Instructive Writing; and more. I am able to draft and review contracts, and have experience with, contract law and business formation in any state. For more insight into my skills and experience, please feel free to visit my LinkedIn profile or contact me with any questions.
A corporate and commercial attorney with experience in transactional legal services including corporate and finance transactions, mergers and acquisitions, real estate, commercial contracts, bankruptcy, restructuring, international business transactions and general counsel services. Additional background skills and experience include investment banking, financial analysis, and commercial litigation. Sectors covered include technology, media, franchises, and business services providers, from start-ups to medium and large enterprises.
I am a sole practitioner who has been in practice for over 25 years. I have represented many small businesses during this time. Let me bring my expertise to your business.
I am a California-barred attorney specializing in business contracting needs. My areas of expertise include contract law, corporate formation, employment law, including independent contractor compliance, regulatory compliance and licensing, and general corporate law. I truly enjoy getting to know my clients, whether they are big businesses, small start-ups looking to launch, or individuals needing legal guidance. Some of my recent projects include: -drafting business purchase and sale agreements -drafting independent contractor agreements -creating influencer agreements -creating compliance policies and procedures for businesses in highly regulated industries -drafting service contracts -advising on CA legality of hiring gig workers including effects of Prop 22 and AB5 -forming LLCs -drafting terms of service and privacy policies -reviewing employment contracts I received my JD from UCLA School of Law and have been practicing for over five years in this area. I’m an avid reader and writer and believe those skills have served me well in my practice. I also complete continuing education courses regularly to ensure I am up-to-date on best practices for my clients. I pride myself on providing useful and accurate legal advice without complex and confusing jargon. I look forward to learning about your specific needs and helping you to accomplish your goals. Please reach out to learn more about my process and see if we are a good fit!
