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 Wyoming, as in other states, 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 is crucial because it means the client is not responsible for withholding income taxes or paying FICA taxes (Social Security and Medicare) for the contractor. The contractor is responsible for paying these taxes themselves. A well-drafted independent contractor agreement in Wyoming should clearly define the scope of work, the duration of the project or service, payment terms including any advance fees or billing procedures, and clauses related to confidentiality, non-solicitation, and how disputes will be resolved. While not required by law to be in writing, having a written agreement is beneficial for both parties as it provides a clear record of the terms agreed upon and can help prevent misunderstandings or legal disputes.