One of the most common issues facing small businesses is how to govern relationships with independent contractors. Which is not really surprising, since many small businesses use independent contractors to perform critical work functions like website development, marketing, bookkeeping and other important functions that keep your business functioning and growing.
To protect your company’s future, you must have written agreements in place with each independent contractor you hire — yes, even if it is your best buddy from college performing the work. Here are the key terms you want in your agreement:
- Full description of the services being provided.
- Description of payment terms, including fixed fee or hourly, how and when payment is rendered.
- Description of how out-of-pocket expenses will be handled.
- Detail of what materials or equipment will be furnished by the company vs. what the independent contractor will supply, including office space.
- Statement that agreement constitutes an independent contractor relationship.
- Statement that the independent contractor has the proper licenses and permits to perform the work you are contracting for.
- Statement that independent contractor is responsible for paying their own state and federal income taxes.
- Statement that you will not be providing any benefits that you provide employees.
- Statement that independent contractor carries the necessary liability insurance
- Set terms of the agreement.
- The terms by which the agreement can be terminated by you or the independent contractor.
- The terms by which you will settle any disputes
- If applicable, an ownership of intellectual property clause that the work or product you are contracting for belongs to you.
- Indemnification clause that indemnifies you for any violation of patent, trademark or intellectual property infringement by the independent contractor.
We can help you develop a written independent contractor agreement as well as other written agreements you should have in place that govern your relationships with employees, vendors and customers.
Johnson Legal PC has successfully represented small to medium size businesses as well as corporations. We understand the ever-changing landscape of the business world and are equipped to quickly adapt and keep clients on track towards organizational goals. Contact us to learn more about how a great corporate attorney can help your business thrive.