A Texas independent contractor agreement establishes the details of an arrangement whereby a contractor provides services in exchange for payment from their client. Before work begins, the two (2) parties should come to an agreement regarding exactly what work the contractor is expected to complete, the timeline in which work should be completed, and how much the contractor will be compensated. The document also indemnifies the client from liability should the contractor become injured carrying out their work.

If the contractor receives compensation in an amount greater than $599 in one year, the client must use Form W-9 to get information from the independent contractor; Form 1099-MISC must also be filled out by the client to report non-employee pay to the IRS.