- What Is a Freelance Contract?
- When Do I Need a Freelance Contract?
- Common Uses of a Freelance Contract
- Consequences of Not Using a Freelance Contract
- What to Include in a Freelance Contract
- How to Write a Freelance Contract
- Sample Freelance Contract
- How Legal Templates Helps With Freelance Contracts
- Frequently Asked Questions
What Is a Freelance Contract?
A freelance contract outlines a project between you and your client. It ensures you deliver work as agreed and the client pays on time.
This document clarifies expectations and ensures everyone is aligned. It records the scope of services and prevents potential disputes. Because it’s legally binding, both parties have recourse if the other doesn’t follow through. Our freelance contract template helps ensure your agreement is complete and fits your project’s needs.
Who Is a Freelancer?
You’re a freelancer if you work on one-off projects for businesses. You’re not a company employee and do not commit to a particular employer long-term.
Freelancers typically have several clients at one time and earn income per project. To get paid, you fill out a freelance invoice with details about the work you completed. Then, you send the invoice to the client for review and payment. Freelancers often have to pay for out-of-pocket expenses unless they get notice otherwise.
Freelancer Payments
Before 2020, companies used to send out Form 1099-MISC to report freelancer payments. Now, companies send out Form 1099-NEC to report non-employee compensation of at least $600.
When Do I Need a Freelance Contract?
You need a freelance contract for a single project over a clear time frame. For example, a self-employed plumber may write one to outline an agreement to fix an office’s leaky pipe. A tutor may also create one if they’re helping a student study for an exam. No matter what job you perform, Legal Templates’s freelance contract lets you customize your agreement.
You can advertise your services to companies looking for specialized skills they don’t have in-house. Your freelance talent can help you enjoy long-term commitments. Note that the client won’t have to provide employee benefits, such as health insurance and paid time off. [1]
When you enter a freelance contract, you will perform the work on your own schedule and time. As long as you meet the client’s deliverables, you maintain control over how the work is performed. There’s less oversight than if you had a traditional employment relationship.
Do I Need a Temporary Employment Contract?
Temporary workers are staffing agency employees, while freelancers are self-employed. If you want to enter a temporary employment relationship, use a temporary employment contract.
Common Uses of a Freelance Contract
A freelance contract has various uses. Depending on your skills, there are many types of short-term projects that you can complete for a company. These are situations in which a client could hire you to complete a specific task:
- A small business hires a programmer to create a website.
- A theater company hires an actor to perform in a play.
- A think tank hires a speaker to deliver their conference’s keynote address.
- A family hires a pet sitter to watch their dog while they are on vacation.
- A couple hires a photographer for their wedding.
- A company hires a marketing consultant to increase awareness of their brand.
- A mother hires the next-door neighbor to watch her child for the evening.
Consequences of Not Using a Freelance Contract
Not using a freelance contract can have significant consequences for you and the client.
Consequences for the Freelance Worker
One of the main consequences for you is scope creep. Without a definitive scope of work, the client may change or add tasks later. This can result in you completing unpaid work. Some other consequences you may face include:
- Difficulty enforcing terms: No contract can make it challenging to enforce agreed-upon terms.
- Loss of payment: A client may delay or refuse payment without written payment terms.
- Intellectual property disputes: You may lose ownership of your project without clarification.
- Lack of termination protections: A client may end a project without notice, leaving you without pay.
- Penalties: You may not know your earnings, and you can face penalties for not disclosing your income on Form 1040.
Consequences for the Hiring Entity
You aren’t the only one who will suffer without a freelance contract. Clients can experience these consequences if they don’t have a written agreement:
- Legal issues and expenses: Misclassifying a worker can create liability issues and result in penalties and back taxes.
- Breach of company information: You may not know your permissions as a freelancer, resulting in misuse of company data.
- Missed deadlines: You may not know when work is due, which can cause the client to miss key deadlines if your work is part of a larger project.
- Incomplete work: A lack of performance expectations can lead to incomplete work or quality disputes.
Independent Contractor vs. Employee
Companies must learn to distinguish between an independent contractor and an employee so they don’t misclassify contract workers.
You can prevent these consequences with our freelancer contract template. Our customizable template helps you record all conditions so you know how to navigate the freelancing arrangement.
What to Include in a Freelance Contract
An enforceable freelance contract must include several key elements. These include:
- Statement of work (SOW): List the services you will perform.
- Pricing: Specify your rates and whether the payment structure is fixed or hourly.
- Payment terms: State the payment method, late fees, and client deposit.
- Payment schedule: Specify when you will get paid and when you should send invoices to the client.
- End product ownership rights and licenses: Discuss whether the client will have exclusive rights to the work.
- Terms and termination: State the terms under which the parties involved can end the working relationship.
- Non-compete agreement: State whether you will be subject to exclusivity agreements that prevent you from working for a competing organization.
- Non-disclosure, right to disclose, and confidentiality: Clarify whether there is a confidentiality agreement protecting shared information.
- Changes and revision: List the guidelines the client must follow if they want to change the project after you start it.
- Indemnity clause: Specify which party is responsible for potential liability relating to your work.
- Insurance responsibilities: Specify whether you need professional liability insurance to protect against claims related to errors or negligence.
- Signatures: Include every party’s signature.
Want to Outline an Ongoing Relationship?
If you have a freelance business that would benefit from longer-term clients, you can write a freelance retainer agreement to engage in ongoing projects.
How to Write a Freelance Contract
An enforceable and comprehensive freelance contract must be written in a certain way. Here’s how to write a contract for freelance work.
1. Provide Party Information and Services
State your and the client’s names and addresses. Then, list the services you will perform. To save time, use Legal Templates’s contract. It lets you describe the services in as much detail as you’d like. Or, you can opt out and attach an exhibit instead. This separate attachment gives details about what you will offer.
2. Explain Compensation, Expenses, & Reimbursement
Next, describe how you will be paid. If you’re using our template, you can choose one of the drop-down options:
- fixed wage
- set fee
- after completing milestones
Indicate how often the client will issue payment. They may issue it every week or month. Or, they may distribute payment after you submit an invoice.
Mention whether you will be reimbursed for expenses incurred. For example, a freelance writer may get reimbursed for credits they buy for a grammar checker.
3. List Terms & Termination
Explain when your services will start and when the agreement will end. To make things easier, our template provides pre-selected options. For example, you can have services begin when the parties sign the agreement or on a different date. You can also mention that the agreement will end:
- after you complete all services
- after a fixed period
- on a specific date
- at will
4. Add Other Provisions
Other provisions can clarify essential terms and conditions in your freelancing relationship. If you use our template, you can easily include details about the following:
- confidentiality
- work product ownership
- insurance responsibilities
- non-compete
- non-solicitation
- Indemnification
Be sure to talk with your client to decide which provisions to include.
5. Record Final Details
The contract should mention how you and your client will resolve disputes. You can also list which state’s laws will govern your freelance agreement. Once you finalize the terms, you and your client can list the agreement date and sign your names.
Sample Freelance Contract
Below, you can view a free freelance contract template to better understand its structure. When you’re ready, fill one out yourself using our dynamic document editor. The final version will be available in PDF or Word formats.
How Legal Templates Helps With Freelance Contracts
Writing a freelance contract from scratch can be time-consuming and confusing. Legal Templates simplifies the process with a comprehensive, legally enforceable freelance contract template. You can customize its terms to suit your freelancing arrangement.
Enter our document editor and fill out your specific details. Save as you go and download to your computer when you’re done. Keep a copy for yourself and send a copy to the client so everyone has the established terms in their records.
Frequently Asked Questions
How long can a freelance contract be?
Freelance contracts vary in length. Some only last a few days, while others span months or years. Its length depends on the scope of work and the client’s needs.
Is there a difference between freelance and contract work?
Yes. A freelancer usually works for multiple clients on a project-by-project basis. Meanwhile, a contractor works for one company for a set period under an independent contractor agreement.
Can you terminate a freelance contract?
Yes, you can end a freelance contract. You must review the contract’s termination clause and follow the stated procedures. If termination is possible, consider using a notice of contract termination.
Do freelance writers need a contract?
Yes, freelance writers should always have contracts, even for small projects. Freelance writing contracts protect the writers’ intellectual property rights. They also establish payment terms and the scope of work beforehand.
What’s the difference between being a freelancer and being self-employed?
Being self-employed means running your own business. A self-employed person manages all aspects of their business, including finances and administration. They may have employees.
A freelancer is a self-employed worker who offers their skills for individual projects. Freelancers tend to work alone and don’t have employees.
