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 West Virginia, a contractor agreement is a legally binding document between a client and a contractor, where the contractor agrees to provide services in exchange for payment. This type of agreement is essential for clarifying the relationship as one of independent contractor status, not employment, which is significant for tax purposes as outlined in the Internal Revenue Code (26 U.S.C. §3509). The client is not responsible for withholding taxes or paying FICA taxes for an independent contractor. A comprehensive contractor agreement in WV should be in writing and typically includes details such as the scope of work, project duration, payment terms, and clauses related to confidentiality, non-solicitation, and dispute resolution. These agreements are equally applicable to contractors operating as sole proprietors, single-member LLCs, corporations, or multi-member LLCs. It's important to ensure that such agreements comply with both federal tax law and West Virginia's state regulations governing contracts and independent contractor relationships.