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What Makes An Independent Contractor Agreement Essential?

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What Makes An Independent Contractor Agreement Essential?

Projects like a marketing campaign or product launch always require the services of a content creator. If a company doesn’t have the manpower to create content in-house, however, they will have to outsource.

The process of working with an independent contractor begins with searching for the right fit and working out the terms and agreements. The next is to sign an independent contractor agreement that outlines the terms of the contract between your company and the contractor being employed. Having the conditions in writing lowers the likelihood of future disputes. It makes everyone aware of critical issues such as the job to be done, the remuneration that will be given, and the deadline for completion.

The Difference between Independent Contractors and Regular Employees

Before you work with an independent contractor, it’s important to understand what sets them apart from regular employees. Taxation is one key area that will be treated differently. When you hire a regular employee, you are liable for withholding earnings taxes and paying employment taxes on their earnings. The independent content creator, on the other hand, works for themselves. They may be a single proprietor or a small business owner who runs their company as an LLC or a corporation. When you engage an independent contractor to perform a job, they are generally liable for their own taxes and insurance. They also often provide their own equipment and receive remuneration in service or project fees rather than a salary.

What Is an Independent Contractor Agreement? 

An independent contractor agreement is a written document that defines the business relationship between an employing business and a content creator or other independent freelancers. It is a legally binding formal agreement that allows both parties to address the fundamentals of their working relationship, prevent misconceptions, and set expectations. Contracts for content creators can help safeguard both parties.

The agreement should cover several important terms, such as:

    • Job summary that must be done

A comprehensive overview of the task that needs to be done must be provided.

    • Status as an independent contractor

It’s critical to specify in the agreement that the content creator or freelancer you are employing to perform the job is being employed as an independent contractor rather than an employee.

  • Terms of payment

Not only does the agreement include the remuneration, but also when and how it will be provided.

  • Completion Date

If there is a need for the job completed by a specific date, this should be included in the agreement.

  • Termination terms

A termination clause should specify the circumstances under which any party may end the agreement.

Optional Elements to Include in the Contract

The following optional terms and conditions may be helpful depending on the nature of the work:

Confidentiality or nondisclosure clause. The independent contractor comes into contact with confidential information or intellectual property while involved in the project. Therefore, a confidentiality or nondisclosure agreement may assist in protecting the company’s details and information.

Non compete clause. This provision prohibits the independent contractor from establishing a venture to compete with your business after completing the job. It should be described in the agreement as a specific period before they can venture into the same industry.

Non-solicitation clause. With a non-solicitation provision in place, the independent contractor cannot acquire your clients or workforce for their gain.

How to Come Up with an Agreement

After you understand what provisions should be included in a typical independent contractor agreement, getting one that works for you should not be a difficult task. Luckily, many independent content creator agreement forms are online to use as a starting point for creating your agreement. There are also simple independent contractor agreement generators available to take the information you give and turn it into a completed contract for you.

The Wrap

You may discover that employing an independent content creator is vital for your business’s success, especially in this digital era. As a small business owner, it is the most convenient method to get the job done. While it may seem more convenient to continue with work based only on a handshake, having an independent contractor agreement is the best approach. It will safeguard your business from potential disputes and possible headaches in the future.

Creators Legal is the first and only legal platform build just for Content Creators. Get simple, straightforward, and trustworthy creator contracts in a fast, easy-to-use platform. With a powerful guided Form Builder, a secure e-signature system, and your own personalized dashboard to store and organize all your contracts, you can get yourself protected in minutes without the need for expensive entertainment lawyers!

Want to learn more? Check out CreatorsLegal.com, where you can get single use contracts or monthly and annual subscriptions on all contracts for creators! Try us now!

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