How To Draw Up an Independent Contractor Agreement

Standardized Legal Documents How To Draw Up an Independent Contractor Agreement

The Hassle-Free Way to Draft an Independent Contractor Agreement

Earning money by working for more than one company is beneficial for your income, but you have to deal with legal documents or contracts on your own. Getting a lawyer to do it for you is an easy yet expensive solution.

If you want to bypass browsing the internet in search of an adequate independent contractor agreement or avoid hiring a lawyer, we are here for you! DoNotPay can help you create an independent contractor agreement easily.

What Is an Independent Contractor Agreement?

An Independent Contractor Agreement is a contract that stipulates the arrangement between a contractor and a client. This document outlines why the party is hired as an independent contractor and not as a regular employee. It is also known as a:

  • Subcontractor Agreement
  • Consulting Agreement
  • Freelance Contract
  • General Contractor Agreement
  • Consulting Services Agreement

Freelancers or contractors who wish to sign a legal document with their clients should create an independent contractor agreement. Businesses and clients who decide to hire contractors, and regulate the arrangement through a written contract, should also resort to this particular document. 

This agreement includes the:

  1. Description of the services provided
  2. Duration and terms of the service
  3. Payment details
  4. Confidentiality, dispute resolution clauses, and non-solicitation

What Is the Difference Between an Independent Contractor and an Employee?

While both an independent contractor and an employee have legal documents signed to protect their labor rights, there are several vital differences between them. Take a look at the table below for more details.

Independent ContractorEmployee
  • Self-employed 
  • Short term cooperation
  • Controls what will be done and how
  • Owns the equipment needed
  • Purchases the work insurance
  • Buys health insurance 
  • Responsible for paying the taxes
  • May sign an Independent Contractor Agreement
  • Responsible for personal injuries on the job 
  • Not covered by employment and labor laws
  • Works for an employer
  • Long term cooperation
  • The employer provides the equipment needed
  • Work insurance covered by the company
  • The company covers health insurance
  • The company pays for the taxes
  • Must sign an Employment Contract
  • The company covers any injuries on the job
  • Covered by several state and federal employment and labor laws

Who Owns the Intellectual Property Created by an Independent Contractor?

Determining ownership of intellectual property can be a challenge, especially when it is created by an independent contractor. Even though there have been disputes regarding this matter, under U.S. copyright law, the owner of the intellectual property in the case of an independent contractor agreement is usually the party commissioning the work and not the person who created the work. 

A contractor can retain the ownership of the intellectual property and give the company license to use the material. This must be arranged before signing the contract, and it should be clearly defined.

What Happens if a Client Fails To Honor the Independent Contractor Agreement?

When creating an independent contractor agreement, you should try to be as detailed as possible. A good independent contractor agreement must have:

  1. A termination provision that describes the termination conditions for both parties
  2. A notice provision explaining the notice period that must be given to legally terminate the agreement

These clauses allow you to avoid any unpleasant situations. An independent contractor agreement is legally binding, so you are entitled to compensation should you experience any difficulties with the company that hired you, and the termination and notice provisions are clearly stated. 

If there is no written proof regarding the cancellation of the independent contractor agreement, the best option is to come to an arrangement with the company and avoid lawsuits. 

A lawsuit might be the only thing to do if an independent contractor has spent money on materials and supplies necessary to finish the project, and the company suddenly terminates the agreement. 

Create an Independent Contractor Agreement With DoNotPay

If you are not familiar with the law and hate going through all the necessary paperwork to create an independent contractor agreement, use DoNotPay! We’ll generate an ironclad agreement for you in no time. What you need to do is:

  1. Open DoNotPay in any web browser
  2. Type Independent Contractor Agreement in the search bar
  3. Our chatbot will need some information, so add the required details

That’s it! DoNotPay will create the contract for you. Once it is ready, you need to sign or notarize it to make it official.

We have a massive database of various documents at your disposal, and more are on their way! Check out the list below to see the legal documents DoNotPay currently offers:

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