An Arkansas independent contractor agreement is a legally binding document that outlines the terms of the working arrangement between a contractor and the individual or company that hires them. The terms of the completed contract include the services the contractor will provide, the amount of compensation they will receive, the amount of liability insurance they will be required to obtain (if applicable), and the agreement’s termination date.

Creating an agreement helps to establish the contractor’s self-employed status, which differentiates them from an employee of the client for tax purposes. Unlike employees, independent contractors must be allowed to make their own schedule and carry out their work in any manner they see fit.