Document background
The 1099 Consulting Agreement serves as a critical legal framework for businesses engaging independent contractors in the United States. This document is essential when companies need specialized expertise without creating an employer-employee relationship. The agreement ensures compliance with IRS regulations for contractor classification, protecting both parties from potential misclassification issues. It covers key aspects such as scope of services, payment terms, intellectual property rights, and confidentiality obligations while maintaining the independent nature of the relationship. This contract type is particularly important given increased scrutiny of worker classification by federal and state authorities.
