Who is an independent contractor?

An independent contractor is someone who runs his or her own business or provides services to a business as a non-employee. Independent contractors are sometimes called consultants, freelancers, self-employed, entrepreneurs or business owners.

What is the difference between independent contractors and employees?

The major difference is that independent contractors maintain full control and direction of how their work is done. The client usually specifies the required result of the work, but does not control how the independent contractor performs the work. In addition, the following characteristics typically apply to independent contractors: They are self-employed They are issued 1099 tax forms, not W-2 tax forms They use their own equipment or tools to perform their work They issue invoices to their clients They work on fixed or short term projects They do not receive company benefits, such as health insurance and paid time off

Does an independent contractor agreement need to be written down?

Yes. It is important to write out your agreement because a written agreement gives both parties protection in case something goes wrong and provides greater legal protection in the event of disputes. In addition, an independent contractor agreement helps you avoid employment misclassification and facing steep misclassification penalties.

Should I use an independent contractor agreement?

You should use an independent contractor agreement if you are a contractor about to be hired by a client, a client hiring an independent contractor, or a company hiring an independent contractor.

Independent Contractor Agreement | Contractor Contract Template

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As you complete your independent contractor agreement, you will need to provide certain relevant information. This includes the client's name and address, work description, and payment terms.

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It is important to read your agreement thoroughly to ensure the document is free of errors and omissions. After completing your agreement, all partners are required to sign the agreement to make it legally binding.

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