Independent Contractor Agreement Template
An independent contractor agreement is a contract that engages an individual to perform work as a contractor rather than an employee. Use it to define the services, compensation, and intellectual-property ownership, and to document that the worker is not an employee.
- Hiring a freelancer or independent professional for a project
- Engaging an individual without putting them on payroll
- Clarifying that a worker is a contractor, not an employee
- Making sure work produced by the contractor is assigned to your business
What a good contractor agreement contains
LegalAI generates each of these clauses for you, tailored to your answers and jurisdiction. Knowing what they do helps you review the draft with confidence.
Description of services
The specific work the contractor will perform and the deliverables expected.
Compensation
Rate, total fee or schedule, and how and when the contractor is paid.
Contractor status
States the worker is an independent contractor responsible for their own taxes. This matters for correct classification.
Intellectual property assignment
Assigns work created under the agreement to the hiring business.
Term and termination
Start and end dates, and how either party can end the engagement early.
Frequently asked questions
What is an independent contractor agreement?
It is a contract between a business and an individual hired as a contractor, not an employee, setting out the services, pay, IP ownership, and the contractor’s independent status.
Why does contractor status matter in the agreement?
Misclassifying an employee as a contractor can create tax and legal liability. A clear status clause helps document the intended relationship, though the actual working arrangement also matters.
Who owns work created by an independent contractor?
By default, contractors may retain rights to their work. A well-drafted agreement includes an IP assignment clause transferring ownership to the hiring business.
LegalAI generates document drafts and is not a law firm. A generated document is a starting point, not legal advice. For high-stakes or regulated matters, have a licensed attorney review the final document.
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