An independent contractor agreement—also known as a 1099 agreement or freelance contract—is a contract between a client willing to pay for the performance of services by a contractor (person, sole-proprietor, or single-member LLC) who is willing to perform the services. Under the Internal Revenue Code (26 U.S.C. §3509), an independent contractor is not an employee, and the client hiring an independent contractor is not responsible for tax withholdings and payment of FICA taxes. An independent contractor agreement should be in writing, and will usually address issues such as the (1) scope of the work (description of the services); (2) terms and length of the project or service; (3) payment details, including fee deposits and billing procedure; and (4) confidentiality, non-solicitation, and dispute resolution clauses.

In Florida, an independent contractor agreement is a legal document that outlines the terms of a working arrangement between a client and a contractor, who is not considered an employee under federal law (26 U.S.C. §3509). This distinction exempts the client from withholding income taxes and paying FICA taxes on behalf of the contractor. The agreement should be in written form to clearly define the expectations and obligations of both parties. Key elements typically included in such an agreement are the scope of work, project duration, payment terms, and clauses related to confidentiality, non-solicitation, and how disputes will be resolved. While Florida law does not mandate specific provisions for these agreements, it is crucial that they comply with federal tax laws and state regulations governing independent contractors to ensure proper classification and avoid misclassification penalties.