Independent Contractor Agreement Template (Free, 2026)

This is a free, 2-page independent contractor agreement with 12 clauses: the work, the pay, contractor status, who owns the work, how it ends and 7 more. Every blank is in red [BRACKETS], and the full text is below in plain English. Copy it, download the PDF, or send it for e-signature for $1.99.

Free to copy, print and edit. Sending it through EsigIt costs $1.99, charged only when every signer has finished.

What's in this independent contractor agreement template?

EsigIt's 2026 contractor agreement has 12 numbered clauses on 2 Letter pages, plus signature lines for both sides. Section 4 matters most. It puts in writing that the contractor decides how, when and where the work gets done, supplies their own tools, and handles their own taxes.

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Independent Contractor Agreement

This agreement is made on [DATE] between [CLIENT BUSINESS NAME], located at [CLIENT ADDRESS] ("Client"), and [CONTRACTOR NAME OR BUSINESS NAME], located at [CONTRACTOR ADDRESS] ("Contractor").

1. Services

Contractor will provide these services: [DESCRIBE THE WORK, THE DELIVERABLES AND THE DEADLINES] (the "Services"). Any added work needs a written change that both parties approve. Email counts.

2. Term

This agreement starts on [START DATE] and ends on [END DATE] or when the Services are finished, unless it ends earlier under section 9.

3. Payment

Client will pay Contractor [$ AMOUNT] [PER HOUR / PER PROJECT / PER MILESTONE]. Contractor will send an invoice [WEEKLY / MONTHLY / AT EACH MILESTONE], and Client will pay each invoice within [NUMBER] days. Client reimburses expenses only when Client approves them in writing before they are spent.

4. Independent contractor status

Contractor is an independent contractor, not an employee, partner or agent of Client. Contractor decides how, when and where to do the work, supplies its own tools and equipment, and is free to work for others. Contractor gets no employee benefits. Client will not withhold income or payroll taxes from payments, except backup withholding when the law requires it, and Contractor is responsible for its own income and self-employment taxes. Contractor will give Client a completed IRS Form W-9 before the first payment, and Client will issue a Form 1099-NEC when the law requires it.

5. Licenses and insurance

Contractor will hold any license, permit or insurance the Services require, at its own cost. [OPTIONAL: Contractor will carry general liability insurance of at least $ AMOUNT and show proof on request.]

6. Confidentiality

Contractor will keep Client's non-public business information private and use it only to perform the Services. This duty lasts until [NUMBER] years after this agreement ends. It does not cover information that is public, that Contractor already had, or that the law requires Contractor to disclose.

7. Ownership of the work

Once Client has paid all amounts due for it, Client owns the work Contractor creates specifically for Client under this agreement, and Contractor assigns Client all of its rights in that work. Contractor keeps the tools, templates and know-how it had before this agreement and gives Client a permanent, non-exclusive license to use any of them that are built into the work.

8. Quality of the work

Contractor will do the work in a professional and workmanlike way that meets the usual standards of its trade.

9. Ending this agreement

Either party can end this agreement with [NUMBER] days' written notice. Either party can end it right away if the other party breaks it and does not fix the problem within [NUMBER] days after written notice. Client will pay for Services performed up to the end date.

10. Responsibility for claims

Each party is responsible for claims caused by its own negligence or misconduct. Each party will cover the other party's reasonable costs, including attorney fees, from third-party claims caused by that negligence or misconduct.

11. Disputes and governing law

The laws of the State of [STATE] govern this agreement. If a dispute comes up, the parties will first try to settle it in good faith for [NUMBER] days before either one files in a court in [COUNTY AND STATE].

12. Entire agreement

This document is the whole agreement between the parties and replaces any earlier understanding. Changes must be in writing and approved by both parties. If a court finds any part unenforceable, the rest stays in effect. The parties agree to sign electronically, and an electronic signature counts the same as a handwritten one.

Client

Signature

Printed name and title

Date

Contractor

Signature

Printed name and title

Date

Template from EsigIt (esigit.com), October 2026. A starting point, not legal advice. State laws differ, especially on who counts as a contractor. Have a lawyer in your state review it before you rely on it.

What is an independent contractor agreement?

An independent contractor agreement is a contract between 2 parties: your business and a self-employed person or company you pay for a job, not as an employee. It covers what gets done, what it pays, when it ends and who owns the result. It also records that the worker runs their own business.

People also call it a 1099 agreement, after the tax form the business files. For work paid in 2026, that form is Form 1099-NEC.

When do you have to send a contractor a 1099 in 2026?

For payments made in 2026, you generally file Form 1099-NEC for each contractor you pay $2,000 or more for services during the year. Before 2026 the line was $600.

Payments to most corporations are exempt. Payments you make by credit card or a payment app go on Form 1099-K from the payment company instead.

The IRS says the $2,000 figure can be adjusted for inflation starting in 2027. Get a completed Form W-9 before the first payment, so you have the contractor's taxpayer ID when it's time to file. Section 4 of this template asks for it. Our W-9 page covers how to collect one with an e-signature.

Does a signed contract make someone an independent contractor?

No: the IRS weighs 3 categories of facts, behavioral control, financial control and the type of relationship, and it says no single factor decides it.

If you set the hours, hand over the tools and direct how the work is done, the worker can be your employee no matter what the paper says. A written contract is one fact the IRS looks at. It isn't the answer.

Some states go further. California uses an ABC test: a worker is an employee unless the business proves all 3 of its conditions, including that the work is outside the usual course of the business. Check your state before you rely on the label.

Can you sign an independent contractor agreement electronically?

Yes: the federal ESIGN Act of 2000 says a contract can't be denied legal effect just because an electronic signature was used to make it.

Wills, family-law papers, court documents and a short list of notices are among the exceptions in 15 U.S.C. § 7003, and a contractor agreement isn't one of them. EsigIt records each signer's consent to sign electronically, checks them with a code sent to their email, and keeps an audit trail of every step with the time and IP address. Read more on what makes an e-signature hold up.

How do you send this contractor agreement for signature with EsigIt?

It takes 4 steps, and EsigIt charges $1.99 once, after you and your contractor have both signed. If they never sign, you pay nothing.

  1. Fill in your part. Download the PDF or copy the text into Word or Google Docs, fill in every red [BRACKET] that's yours, and save it as a PDF.
  2. Upload it to EsigIt. Or press Send it for signature to start from the blank template and add a text field for each blank your client fills in.
  3. Add who signs. Type each signer's name and email, then drag the signature and date fields onto the signature lines.
  4. Send. Your client opens the link, enters a 6-digit code EsigIt emails them, reads the whole document and signs on their phone. You both get the signed PDF.

This is not legal advice. The template is a starting point, and state laws differ. Worker classification is where they differ most: a contract alone doesn't make someone a contractor. Have a lawyer in your state review it before you rely on it.

Sources, checked October 15, 2026: IRS: Am I required to file a Form 1099? · IRS: Instructions for Forms 1099-MISC and 1099-NEC (12/2026) · IRS: Independent contractor (self-employed) or employee? · California Labor and Workforce Development Agency: ABC test · ESIGN Act, 15 U.S.C. § 7001 (general rule of validity) · 15 U.S.C. § 7003 (documents ESIGN excludes).

What else do people ask about this template?

4 short answers, current as of October 2026.

Is this independent contractor agreement free?
Yes. Copy it, download the PDF, print it and edit it as much as you want. You pay EsigIt $1.99 only if you send it through EsigIt and every signer finishes.
Can I use it for a subcontractor?
Yes. Put your company in as Client and the subcontractor as Contractor. If your own client's contract has terms the subcontractor must follow, like insurance or confidentiality, add them to sections 1, 5 and 6.
Do I need a lawyer to use it?
Not to use a template. Have a lawyer in your state read it before you rely on it for a big job or a long relationship, because worker classification rules differ by state.
Do both sides sign?
Yes. EsigIt can send it to you first and then your contractor, or to both of you at once. It counts as 1 document and costs $1.99 once.

Which templates go with this one?

EsigIt has 7 free templates in 2026. These 3 pair well with a contractor agreement.

All templates · How $1.99 pricing works · How sending works · Is an e-signature legally binding?