Freelance vs. Contract
Freelancers and contractors (also referred to as independent contractors) are terms generally used interchangeably for a self-employed individual. In practice, the terms are synonymous and both types of workers are required to file taxes as a 1099 employee.
However, the term freelancer is often used to refer to someone with full autonomy over their work, taking on smaller projects more frequently, while a contractor may have less flexibility with their work location and schedule, typically working on longer-term projects.
How to Write a Freelance Contract
- Parties – The names and mailing addresses of each party.
- Services – The services that the freelancer is providing for the client.
- Payment – The payment method, amount, and schedule.
- Expenses – Specifies which party is responsible for which expenses.
- Contractor Status – States that the freelancer is not an employee of the client.
- Signatures – The signatures of the client and freelancer, as well as the signing date.
Sample
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FREELANCE CONTRACT
1. PARTIES. This Freelance Contract (the “Contract”) is made between:
Client: [CLIENT NAME] with a mailing address of [CLIENT ADDRESS] (the “Client”), AND
Freelancer: [FREELANCER NAME] with a mailing address of [FREELANCER ADDRESS] (the “Freelancer”).
WHEREAS, the Client intends to pay the Freelancer for Services provided, effective [MM/DD/YYYY], (the “Effective Date”) under the following terms and conditions:
2. SERVICES. The Freelancer agrees to perform the following for the Client:
[LIST ALL SERVICE(S) HERE].
Hereinafter known as the “Services”.
3. PAYMENT. In consideration for the Services to be performed by the Freelancer, the Client agrees to pay the following: (check one)
☐ – [AMOUNT] / Hour.
☐ – $[AMOUNT] (lump sum) for the Services.
☐ – Other. [OTHER].
The Freelancer agrees to be paid: (check one)
☐ – Within [#] days upon delivering an invoice.
☐ – Upon the completion of all Services.
☐ – On a [FREQUENCY] (e.g., weekly, monthly) basis starting from the Effective Date.
☐ – Other. [OTHER].
Completion shall be defined as the fulfillment of Services as described in Section 2 in accordance with industry standards and to the approval of the Client, not to be unreasonably withheld.
4. DUE DATE. The Services provided by the Freelancer shall: (check one)
☐ – Be completed by [MM/DD/YYYY].
☐ – NOT have a due date.
☐ – Other: [OTHER DUE DATE].
5. TERMINATION. This Contract shall terminate upon the: (check all that apply)
☐ – Completion of the Services provided.
☐ – Date of [MM/DD/YYYY].
☐ – Other. [OTHER].
6. OPTION TO TERMINATE. The Client and the Freelancer shall not have the option to terminate this Contract earlier than the agreed upon terms mentioned in Section 5 unless there is a reasonable cause.
7. EXPENSES. The Freelancer shall be responsible for all expenses that are attributable directly to the Services performed under this Contract.
8. INSURANCE. The Freelancer agrees to bear all responsibility for the actions related to themselves and their employees or personnel under this Contract. In addition, the Freelancer agrees to obtain comprehensive liability insurance coverage in case of bodily or personal injury, property damage, contractual liability, and cross-liability (the “Liability Insurance”).
9. FREELANCER STATUS. The Freelancer, under the code of the Internal Revenue Service (IRS), is an independent contractor, and neither the Freelancer’s employees or contract personnel are, or shall be deemed, the Client’s employees.
10. OTHER BUSINESS ACTIVITY. The Freelancer may engage in other business activities provided, however, that the Freelancer shall not during the term of this Contract solicit the Client’s employees, clients, accounts, or other related business endeavors of the Client.
11. ASSIGNMENT. Neither the Client nor the Freelancer may assign this Contract without the express written consent of the other party.
12. RELATIONSHIP DEFINED. Nothing in this Contract shall indicate the Freelancer is a partner, agent, or employee of the Client.
13. BUSINESS LICENSES, PERMITS, AND CERTIFICATES. The Freelancer represents and warrants that all employees and personnel associated shall comply with federal, state, and local laws requiring any required licenses, permits, and certificates necessary to perform the Services under this Contract.
14. FINAL AGREEMENT. It is agreed between the parties that there are no other agreements or understandings between them relating to the subject matter of this Contract. This Contract supersedes all prior agreements, oral or written, between the parties and is intended as a complete and exclusive statement of the agreement between the parties. No change or modification of this Contract shall be valid unless the same be in writing and signed by the parties.
15. LEGAL NOTICE. All notices or required or permitted to be given hereunder shall be in writing and may be delivered personally or by Certified Mail – Return Receipt Requested, postage prepaid, addressed to the addresses included in
16. INDEMNIFICATION. The Freelancer shall indemnify and hold the Client harmless from any loss or liability from performing the Services under this Contract.
17. GOVERNING LAW. This Contract shall be governed under the laws in the State of [STATE].
18. SEVERABILITY. This Contract shall remain in effect in the event a section or provision is unenforceable or invalid. All remaining sections and provisions shall be deemed legally binding unless a court rules that any such provision or section is invalid or unenforceable, thus, limiting the effect of another provision or section. In such case, the affected provision or section shall be enforced as so limited.
19. ADDITIONAL TERMS & CONDITIONS.
[TYPE ANY ADDITIONAL TERMS & CONDITIONS HERE].
IN WITNESS WHEREOF, the Parties have indicated their acceptance of the terms of this Contract by their signatures below on the dates indicated.
Client’s Signature: _______________________ Date: [MM/DD/YYYY]
Print Name: [CLIENT NAME]
Freelancer’s Signature: _______________________ Date: [MM/DD/YYYY]
Print Name: [FREELANCER NAME]