Independent Contractor Agreement Template (Free)
This template handles the single biggest risk in contractor relationships: misclassification. If the IRS, DOL, or your state determines your "contractor" was actually an employee, you owe back taxes, penalties, and benefits.
Key Sections
Clear independent contractor status with no benefits. Scope per SOW. IP ownership on payment. Mutual confidentiality. Termination for cause and convenience. Proper 1099 and W-9 handling.
Tax Forms
For U.S. contractors paid $600+ in a year, issue a 1099-NEC. Collect a W-9 before the first payment — chasing it months later is a headache.
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Decode My LeaseFrequently asked questions
What makes someone a contractor vs employee?
Multi-factor tests from IRS, DOL, and states. Key factors: who controls the work, who provides tools, whether the worker can take other clients, and whether the relationship is project-based or ongoing. The agreement helps but behavior matters more.