Independent Contractor Agreements

An independent contractor agreement is an agreement between two parties. For instance, I had a client yesterday that wants to negotiate a business deal with another business. This client will get a finder's fee for introducing the other company to prospective customers in Illinois. Thus, an independent contractor agreement defines what the business relationship will be including the price terms, rights upon a dispute (how resolved), and who is responsible for payroll and other applicable taxes.

An independent contractor is responsible for filing their own taxes and it is important to deal with the issue of control. Often times, the difference between an employee and independent contractor is control. The IRS examines whether the employer essentially had control or whether the independent contractor had control. Items such as whether the employer provided an office space, who controlled the hours worked, whether the independent contractor has a business, and whether this type of position is normally an independent contractor or employee.

Well-drafted independent contractor agreements are essentially three to four pages and are clear and well-written.

Robertson Law Group, LLC
Sean Robertson, Attorney at Law
(312) 498-6080 or (630) 364-2318
RobertsonLawGroup@gmail.com