A contractor agreement sets expectations (what will be delivered, when, for how much, and who owns the result) and documents that the worker is a contractor rather than an employee.
Free Independent Contractor Agreement template
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Independent Contractor Agreement
This Agreement is made on ____ between ____ ("Client") and ____ ("Contractor").
1. Services
Contractor will provide the following services: ____ (the "Services"), to be completed by ____.
2. Payment
Client will pay Contractor ____. Contractor will invoice Client, and invoices are due ____.
3. Independent contractor
Contractor is an independent contractor, not an employee. Contractor controls how the Services are performed, provides their own tools, and is responsible for their own taxes, insurance and benefits.
4. Ownership of work
On full payment, Contractor assigns to Client all rights in the work product created specifically for Client under this Agreement, except Contractor’s pre-existing tools and know-how, which Contractor may continue to use.
5. Confidentiality
Contractor will keep Client’s non-public information confidential and use it only to perform the Services.
6. Termination
Either party may end this Agreement with 14 days’ written notice. Client will pay for Services performed through the termination date.
7. Liability
Neither party is liable for indirect or consequential damages. Each party is responsible for its own acts and omissions.
8. General
This Agreement is governed by the laws of ____, is the entire agreement, and may be changed only in writing signed by both parties.
Client: __ Date: __
Contractor: __ Date: __
This free template is general information, not legal advice, and may not suit your state or situation. Some documents must be signed before witnesses or a notary. For anything important, have a lawyer review it.
Contractor or employee?
Calling someone a contractor doesn’t make them one. The IRS, the Department of Labor and states look at the real relationship: who controls how the work is done, whether the worker has their own business, and how permanent the relationship is. Misclassification can lead to back taxes and penalties.
Get the scope right
Most freelancer disputes are about scope. List deliverables, number of revisions and deadlines.
Frequently asked questions
Do I need to send a 1099?
Generally, if you pay a contractor $600 or more in a year for business services, you file a Form 1099-NEC (check the current IRS rules).
Questions from readers
Question about the Independent Contractor Agreement? Ask it here. We answer common questions in general terms on this page. This is not legal advice.
