A contractor agreement—also known as an independent contractor agreement, 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. A 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, hourly rate, and billing procedure; and (4) confidentiality, non-solicitation, and dispute resolution clauses.

A contractor may also operate as a corporation or multi-member limited liability company, for example, and the contractor agreement with such an entity will be similar to an agreement with an individual who is an independent contractor.

In Florida, a contractor agreement is a legally binding document between a client and a contractor, where the contractor is engaged to perform services as an independent contractor rather than an employee. This distinction is important for tax purposes, as outlined by the Internal Revenue Code (26 U.S.C. §3509), which indicates that clients are not responsible for withholding taxes or paying FICA taxes for independent contractors. Florida law does not mandate a specific format for contractor agreements, but it is advisable to have a written contract to clearly outline the terms of the service arrangement. The written agreement typically includes the scope of work, project duration, payment details, and clauses related to confidentiality, non-solicitation, and dispute resolution. It's important to note that the nature of the agreement does not change significantly if the contractor is a corporation or a multi-member LLC; the same principles apply as with agreements with individual contractors. Contractors and clients may also need to consider local ordinances and federal laws that could impact the agreement. It is recommended to consult with an attorney to ensure that the agreement complies with all applicable laws and adequately protects the interests of both parties.