Free Independent Contractor Agreement Template
Free, editable, and written for Michigan. Opens in Word, Pages, or Google Docs.
Quick Answer
What should an independent contractor agreement include?
An independent contractor agreement should identify the parties, describe the scope of work and deliverables, state the fee and payment schedule, say who owns the work product, cover confidentiality, and set how either side can end the engagement. It should also state clearly that the contractor is not an employee, controls how the work is performed, supplies their own tools, and is responsible for their own taxes and insurance. Calling someone a contractor does not make them one — the IRS and Michigan agencies look at the actual working relationship, and misclassification can create back tax, unemployment, and workers' compensation liability. This free template is a generic starting point, not legal or tax advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.
What this document does
- A contract for a business to hire a person or company to perform services without making them an employee.
- It separates what gets delivered, what gets paid, and who owns the result.
- It is the document a business should have before any freelancer, subcontractor, or consultant starts work.
What Michigan requires
- Classification is determined by the substance of the relationship, not the label. Federal and Michigan agencies apply their own tests looking at control over how work is done, whose tools are used, whether the worker can profit or lose, and whether the work is integral to the business.
- Misclassifying an employee as a contractor can lead to back payroll taxes, unemployment insurance assessments, and workers' compensation exposure.
- Businesses generally issue Form 1099-NEC for payments of $600 or more in a year to a non-corporate contractor, and should collect a completed Form W-9 before paying.
- Without a written assignment, a contractor often retains copyright in what they create — which is why the ownership clause matters.
- Construction and licensed trades have additional Michigan licensing and lien rules that a general contractor agreement does not cover.
How to sign and deliver it
- Both parties sign and date. Entities sign through an authorized person with the title stated.
- No notary is required.
- Attach the scope of work as an exhibit so it can be updated without rewriting the contract.
- Collect the contractor's Form W-9 and a certificate of insurance where appropriate before work begins.
Mistakes people make
- Vague scope, so nobody can say when the work is finished.
- No payment schedule or late-payment terms.
- Silence on who owns the finished work, which usually leaves ownership with the contractor.
- Controlling the contractor's hours, methods, and workplace, then relying on the contract to call them a contractor anyway.
- Not collecting a W-9 before the first payment.
- No termination clause, so ending the relationship becomes a dispute.
Frequently asked questions
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Reviewed and updated by the Clear Path document team. Informational only — not legal advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.