Legal Template
Free Independent Contractor Agreement Template
An independent contractor agreement establishes that a worker is not an employee and defines the working relationship.
Template
Copy this markdown, replace the {{variables}}, and send via API.
# Independent Contractor Agreement
**Company:** {{companyName}}
**Contractor:** {{contractorName}}
**Date:** {{date}}
## Services
{{serviceDescription}}
## Compensation
{{compensationTerms}}
## Relationship
Contractor is an independent contractor, not an employee. Contractor is responsible for their own taxes and insurance.
## Term
{{contractTerm}}
## IP Assignment
{{ipTerms}}
## Termination
{{terminationTerms}}Send for e-signature
curl -X POST https://signb.ee/api/send \
-H "Authorization: Bearer YOUR_API_KEY" \
-H "Content-Type: application/json" \
-d '{
"content": "YOUR_RENDERED_MARKDOWN",
"senderName": "Your Name",
"senderEmail": "you@company.com",
"recipientName": "Recipient",
"recipientEmail": "recipient@email.com"
}'What happens next
- Signbee converts the markdown to a professional PDF
- Recipient gets an email with a signing link
- Both parties sign with an animated handwriting signature
- Both receive the signed PDF with a SHA-256 certificate
All signatures are legally binding under the ESIGN Act, eIDAS, and ECA.
More details
An independent contractor agreement is one of the most legally significant business documents. It defines the boundary between an employee and a contractor — a distinction that affects taxes, benefits, labour law protections, and potential penalties for misclassification.
Why misclassification is dangerous: Classifying a worker as an independent contractor when they're actually an employee can result in back taxes, unpaid benefits, overtime claims, penalties, and lawsuits. The IRS (US), HMRC (UK), and equivalent agencies worldwide actively investigate misclassification. Penalties include back payment of employment taxes, benefits, and fines of $50-$100 per misclassified worker per form.
How to determine if someone is a contractor vs employee: - Behavioural control: Does the company control how the work is done? Employees follow company procedures; contractors control their own methods. - Financial control: Does the worker have a significant investment in their own equipment? Do they have unreimbursed expenses? Can they make a profit or loss? Contractors operate as businesses. - Relationship type: Is there a written contract? Employee benefits? Is the relationship permanent or project-based? Contractors work on defined projects.
Essential clauses: 1. Independent contractor status — Explicitly state the worker is not an employee. This alone doesn't prevent misclassification, but its absence makes the situation worse. 2. Control — The contractor controls how, when, and where they work. The company specifies the result, not the process. 3. Own tools and equipment — The contractor provides their own tools, software, and workspace. 4. Multiple clients — The contractor is free to work for other clients, including competitors (unless a separate non-compete applies). 5. Taxes — The contractor is responsible for all self-employment taxes and insurance. The company does not withhold taxes. 6. No benefits — The contractor is not entitled to health insurance, pension, PTO, or any employee benefits. 7. IP assignment — Work product created under the agreement is assigned to the company upon payment. 8. Termination — Either party can terminate with notice. The company pays for work completed up to termination.
Frequently asked questions
What is the difference between an independent contractor and an employee?
An independent contractor controls how they work, uses their own tools, can work for multiple clients, handles their own taxes, and receives no employee benefits. An employee works under the company's direction, uses company equipment, and receives benefits. The classification depends on the actual working relationship, not just the contract label.
What happens if a contractor is misclassified?
The company may owe back employment taxes, unpaid benefits, overtime, and penalties. The IRS, HMRC, and similar agencies investigate misclassification. Penalties can be substantial — including per-worker fines and back-payment of all employment obligations.
Can independent contractor agreements be signed electronically?
Yes. Independent contractor agreements are valid with electronic signatures under ESIGN (US), eIDAS (EU), and ECA (UK). Sign before work begins to establish the contractor relationship from day one.
Related resources
Send this template for signing — free, no credit card.