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contractor_agreementWhat should your independent contractor agreements contain? While hiring an independent contractor (as opposed to an employee) may seem like an easier option, drafting a binding agreement is still necessary and can provide you, the employer, with legal protection.

Independent contractors can be very beneficial for a small business owner, and can often save you money when it comes to certain tasks. But unless those tasks (and other terms) are spelled out in an agreement, using contractors can potentially lead to legal headaches.

Before you hire your next contractor, here are five tips to keep in mind when drafting your independent contractor agreement:

Classification is key. It’s very important to classify your workers as contractors for tax purposes. An oversight on your end can lead to trouble with the IRS. Make sure you properly classify your worker as an independent contractor and lay out a few of the key factors that point to a contractor relationship (behavioral factors and scope of control, for example) in writing.

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