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Independent Contractor Agreement

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Independent Contractor Agreement Page of
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INDEPENDENT CONTRACTOR AGREEMENT

THIS INDEPENDENT CONTRACTOR AGREEMENT (the "Agreement") is dated this ________ day of ________________, ________.

Client

____________________________________________________
(the "Client")

Contractor

____________________________________________________
(the "Contractor")
  1. BACKGROUND
  2. The Client is of the opinion that the Contractor has the necessary qualifications, experience and abilities to provide services to the Client.
  3. The Contractor is agreeable to providing such services to the Client on the terms and conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Client and the Contractor (individually the "Party" and collectively the "Parties" to this Agreement) agree as follows:

  1. Services Provided
  2. The Client hereby agrees to engage the Contractor to provide the Client with the following services (the "Services"):
    • _______________________________________________________________
      _______________________________________________________________.

  3. The Services will also include any other tasks which the Parties may agree on. The Contractor hereby agrees to provide such Services to the Client.
  4. Term of Agreement
  5. The term of this Agreement (the "Term") will begin on the date of this Agreement and will remain in full force and effect until the completion of the Services, subject to earlier termination as provided in this Agreement. The Term may be extended with the written consent of the Parties.
  6. Performance
  7. The Parties agree to do everything necessary to ensure that the terms of this Agreement take effect.
  8. Currency
  9. Except as otherwise provided in this Agreement, all monetary amounts referred to in this Agreement are in USD (US Dollars).
  10. Compensation
  11. The Contractor will charge the Client a flat fee of $__________ for the Services (the "Compensation").
  12. The Client will be invoiced when the Services are complete.
  13. Invoices submitted by the Contractor to the Client are due within 30 days of receipt.
  14. In the event that this Agreement is terminated by the Client prior to completion of the Services but where the Services have been partially performed, the Contractor will be entitled to pro rata payment of the Compensation to the date of termination provided that there has been no breach of contract on the part of the Contractor.
  15. Reimbursement of Expenses
  16. The Contractor will be reimbursed from time to time for reasonable and necessary expenses incurred by the Contractor in connection with providing the Services.
  17. All expenses must be pre-approved by the Client.
  18. Confidentiality
  19. Confidential information (the "Confidential Information") refers to any data or information relating to the Client, whether business or personal, which would reasonably be considered to be private or proprietary to the Client and that is not generally known and where the release of that Confidential Information could reasonably be expected to cause harm to the Client.
  20. The Contractor agrees that they will not disclose, divulge, reveal, report or use, for any purpose, any Confidential Information which the Contractor has obtained, except as authorized by the Client or as required by law. The obligations of confidentiality will apply during the Term and will survive indefinitely upon termination of this Agreement.
  21. Ownership of Intellectual Property
  22. All intellectual property and related material, including any trade secrets, moral rights, goodwill, relevant registrations or applications for registration, and rights in any patent, copyright, trademark, trade dress, industrial design and trade name (the "Intellectual Property") that is developed or produced under this Agreement, is a "work made for hire" and will be the sole property of the Client. The use of the Intellectual Property by the Client will not be restricted in any manner.
  23. The Contractor may not use the Intellectual Property for any purpose other than that contracted for in this Agreement except with the written consent of the Client. The Contractor will be responsible for any and all damages resulting from the unauthorized use of the Intellectual Property.
  24. Return of Property
  25. Upon the expiration or termination of this Agreement, the Contractor will return to the Client any property, documentation, records, or Confidential Information which is the property of the Client.
  26. Capacity/Independent Contractor
  27. In providing the Services under this Agreement it is expressly agreed that the Contractor is acting as an independent contractor and not as an employee. The Contractor and the Client acknowledge that this Agreement does not create a partnership or joint venture between them, and is exclusively a contract for service. The Client is not required to pay, or make any contributions to, any social security, local, state or federal tax, unemployment compensation, workers' compensation, insurance premium, profit-sharing, pension or any other employee benefit for the Contractor during the Term. The Contractor is responsible for paying, and complying with reporting requirements for, all local, state and federal taxes related to payments made to the Contractor under this Agreement.
  28. Right of Substitution
  29. Except as otherwise provided in this Agreement, the Contractor may, at the Contractor's absolute discretion, engage a third party sub-contractor to perform some or all of the obligations of the Contractor under this Agreement and the Client will not hire or engage any third parties to assist with the provision of the Services.
  30. In the event that the Contractor hires a sub-contractor:
    • the Contractor will pay the sub-contractor for its services and the Compensation will remain payable by the Client to the Contractor.
    • for the purposes of the indemnification clause of this Agreement, the sub-contractor is an agent of the Contractor.
  31. Autonomy
  32. Except as otherwise provided in this Agreement, the Contractor will have full control over working time, methods, and decision making in relation to provision of the Services in accordance with the Agreement. The Contractor will work autonomously and not at the direction of the Client. However, the Contractor will be responsive to the reasonable needs and concerns of the Client.
  33. Equipment
  34. Except as otherwise provided in this Agreement, the Contractor will provide at the Contractor’s own expense, any and all tools, machinery, equipment, raw materials, supplies, workwear and any other items or parts necessary to deliver the Services in accordance with the Agreement.
  35. No Exclusivity
  36. The Parties acknowledge that this Agreement is non-exclusive and that either Party will be free, during and after the Term, to engage or contract with third parties for the provision of services similar to the Services.
  37. Notice
  38. All notices, requests, demands or other communications required or permitted by the terms of this Agreement will be given in writing and delivered to the Parties at the following addresses:
    1. ______________________
      ______________________________
    2. ______________________
      ______________________________

    or to such other address as either Party may from time to time notify the other, and will be deemed to be properly delivered (a) immediately upon being served personally, (b) two days after being deposited with the postal service if served by registered mail, or (c) the following day after being deposited with an overnight courier.

  39. Indemnification
  40. Except to the extent paid in settlement from any applicable insurance policies, and to the extent permitted by applicable law, each Party agrees to indemnify and hold harmless the other Party, and its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying party, its respective affiliates, officers, agents, employees, and permitted successors and assigns that occurs in connection with this Agreement. This indemnification will survive the termination of this Agreement.
  41. Modification of Agreement
  42. Any amendment or modification of this Agreement or additional obligation assumed by either Party in connection with this Agreement will only be binding if evidenced in writing signed by each Party or an authorized representative of each Party.
  43. Time of the Essence
  44. Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this provision.
  45. Assignment
  46. The Contractor will not voluntarily, or by operation of law, assign or otherwise transfer its obligations under this Agreement without the prior written consent of the Client.
  47. Entire Agreement
  48. It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except as expressly provided in this Agreement.
  49. Enurement
  50. This Agreement will enure to the benefit of and be binding on the Parties and their respective heirs, executors, administrators and permitted successors and assigns.
  51. Titles/Headings
  52. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.
  53. Gender
  54. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  55. Governing Law
  56. This Agreement will be governed by and construed in accordance with the laws of the State of Alabama.
  57. Severability
  58. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, all other provisions will nevertheless continue to be valid and enforceable with the invalid or unenforceable parts severed from the remainder of this Agreement.
  59. Waiver
  60. The waiver by either Party of a breach, default, delay or omission of any of the provisions of this Agreement by the other Party will not be construed as a waiver of any subsequent breach of the same or other provisions.

IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.

__________________________
Per:
____________________________
(Seal)
Officer's Name: __________________________
_______________________________
______________________ (Contractor)
Independent Contractor Agreement Page of
©2002-2025 LawDepot.com®
Last updated August 01, 2025

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What is an Independent Contractor Agreement?

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An Independent Contractor Agreement is a legal contract between a client and a self-employed worker. Creating this contract outlines the services or tasks the contractor will complete, alongside the terms and conditions of the working arrangement. 

Independent contractors include freelance workers, gig workers, and subcontractors.

An Independent Contractor Agreement is also known as a:

  • Freelance worker contract
  • Subcontractor agreement
  • Self-employed worker contract

Customize your Independent Contractor Agreement template now.

Should I use an Independent Contractor Agreement?

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Businesses, clients, and independent contractors should use an Independent Contractor Agreement because it benefits and protects all parties.

Verbal agreements can be valid. However, having a written agreement can benefit the worker and the client by:

  • Outlining the rate, payment schedule, and any reimbursed expenses
  • Providing terms on the scope and timeline of work or services
  • Expressing the legal obligations of all parties
  • Creating proof of agreed-upon terms if an issue occurs and outlining dispute resolution

An agreement further benefits both parties by determining intellectual property (IP) ownership for copyright materials created during the contract and documenting clear termination clauses. For example, termination clauses clarify how and when either party can end the contract, reducing the risk of breaching the agreement.

If you choose not to include a termination clause, but later find you need one, you can use LawDepot’s Termination Agreement to record the mutual cancellation of your contract.

When to use an Independent Contractor Agreement

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Whether you’re a self-employed contractor or the client, use an Independent Contractor Agreement for a specific project or a work period. When you’re negotiating work, or when both parties have agreed to the work period and terms, either party can draft an agreement.

It’s important to note that you should sign an agreement before any work starts. This can help ensure there are no doubts about what terms and work are arranged between both parties and reduce possible disputes. 

Who are classified as independent contractors?

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Independent contractors are self-employed individuals or business entities who work in the freelance and gig-worker economy. They can take on multiple contracts at will. Independent contractors can also be called subcontractors when they’re hired by a head contractor engaged on a project to fulfill specific aspects of that project. 

Independent contractors can work in many different specialties and industries, such as:

Service Specialty Examples
Skilled tradespeople
  • Landscapers
  • Carpenter
  • Painters
  • Builders
  • Electricians
Professionals
Transportation providers
  • Limo services 
  • Independent couriers (e.g., truck-driving owner-operators)
Administrative specialists
  • Self-employed administrative representatives 
  • Bookkeepers
  • Scheduling support
Other specialists

It’s important to note that independent contractors are not employees. It is all too common for an employer, business, or client to wrongfully classify employees as independent contractors to purposely avoid paying employment benefits and wages. Employers guilty of purposefully misclassifying employees may be liable to pay all employment taxes and fines.

Independent contractors have their clients report their payments on Form 1099-NEC (Nonemployee Compensation) while employers report their employees' earnings on Form W-2, Wage and Tax Statement.

To determine whether someone is an independent contractor, a court or employment tribunal will consider not only whatever contract is in place between the parties, but also these factors:

  • Is the worker free to gain or lose profit through their own choices and not through a manager?
  • Does the worker provide their own tools and materials, invest time and money into their services and marketing?
  • Does the worker work multiple, sporadic contracts for different clients at once, with fixed projects or end dates?
  • Does the worker set their own payment rate, schedule, and choose their contracts?

For more information on the differences, read our guide on Employees vs. Independent Contractors.

How do I create an Independent Contractor Agreement?

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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.

Step 4: Include billing and payment information

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.

LawDepot’s Invoice Form can be used alongside an Independent Contractor Agreement. According to the Internal Revenue Service (IRS), paid invoices should be kept and stored for a minimum of three years for accounting purposes.

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.

Are Independent Contractor Agreements legally binding?

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Yes, valid Independent Contractor Agreements are legally binding contracts. Elements for a binding agreement include:

  • Identification and signatures of both parties
  • Consideration, which means something of value is exchanged (e.g., service exchanged for compensation)
  • Offer and acceptance, that means both parties agree to the terms and conditions of the contract
  • Mutuality of both parties entering the contract with the intention that it will be enforceable and valid
  • Legality which means the contract follows both state and federal laws (e.g., the contract doesn’t outline illegal activity or promises)

Verbal contracts regarding work agreements can be legally binding, but the problem is finding evidence to support the terms of such a contract. Having a written contract solves that problem.

LawDepot’s independent worker contract is customizable and allows you to select the state where the work is taking place. Those state laws will govern your contract.

If you have any questions regarding your contract, talk to a lawyer for further guidance, or have them review your agreement before signing. 

Are Non-Compete Agreements enforceable as a part of an Independent Contractor Agreement?

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No, enforcing a Non-Compete Agreement as part of an Independent Contractor Agreement is unrealistic. To be valid, a Non-Compete Agreement must be reasonable in time, space, and scope. Restricting an independent contractor's ability to obtain work is likely unreasonable.

Talk to a lawyer if you have questions about non-competes or want to add additional legal clauses to your Independent Contractor Agreement.

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Independent Contractor Agreement

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