Creating a legally valid Independent Contractor Agreement is easy with LawDepot’s customizable template. Take the guesswork out of making your agreement by first selecting the type of service being provided, then follow these six simple steps:
Step 1: State the location of the contract
Since different states have unique rules and regulations, you must select the state where the work will be completed. This customizes your agreement to follow state laws.
Step 2: Note client and contractor details
Once you’ve selected your role in the contract, the next step is to add information about both parties. This includes both the contractor’s name and address and the client’s name and address.
Either party can consist of more than one individual or organization. If either party is an organization, include its legal company name.
Step 3: Describe the services provided
Next, include the duration of the service, which can be:
- Until the work is completed
- Until a specific date
- Ongoing without a set deadline
Then, write down a thorough description of the tasks, work, and services to be provided. Also include any important deadlines or considerations, like whether part of the work will be due on a set date or time.
Independent worker contracts include information about payments and billing. Key payment details include:
- The rate the contractor will charge (e.g., a flat, hourly, or daily rate)
- How much will the fee be
- If the contractor will charge sales tax or if it’s included in the rate
- When invoices are due
- If there is interest payable on late payments
Independent contractors may also charge an optional retainer fee, which operates like a deposit, before work begins to secure and confirm services. If this applies to your situation, add it to your agreement.
Step 5: Add any clauses and conditions for the contract
Adding extra terms, conditions, and provisions unique to your business relationship can ensure the contract is well-rounded and represents the best interests of all parties.
For example, if you have a fixed-term contract, add a termination clause if you’d like to have the option to end the contract early. If you’re contract isn’t fixed-term (e.g., for ongoing work), a notice period is required for your agreement. State how much notice either party needs to end the contract (e.g., 7 or 30 days).
Other clauses to consider for your agreement include:
- Expenses: Include details regarding reimbursement for work-related expenses (e.g., mileage for work travel, rental equipment, or materials for the job).
- Intellectual Property (IP): Determine who owns the rights to intellectual property created during the contract period.
- Confidentiality: Protect sensitive or private business-related or personal information.
For more flexibility, LawDepot’s Independent Contractor Agreement template also allows you to include any additional clauses that are lawful and applicable to your agreement.
Step 6: Add signing details
Finally, determine when both parties will sign the contract and if a witness will be present. Having a witness also sign the contract is not mandatory, but a witness can be called up to verify that both parties willingly entered the agreement if a future dispute occurs.
Use LawDepot’s eSign service to quickly sign and request signatures online, from anywhere in the United States.