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Employment

Independent Contractor Agreement

Texas

Asked on Mar 29, 2021

What is the difference between an independent contractor agreement and consulting agreement?

I am looking to hire someone to help my startup and am not sure which agreement I should use.

1 Attorney answer

Answer

Employment

Texas

Answered 247 days ago

Forest H.

ContractsCounsel verified

Business Lawyer
Licensed in Florida, Tennessee, Texas
Free Consultation

While the basic structure and framework of a consulting agreement and an independent contractor agreement are very similar, the primary difference is in what services the consultant provides. In a consulting agreement, the consultant is providing their advice for a fee. The guidance will be in the field of their expertise and, usually, includes evaluating an aspect of your business and making suggestions regarding what to do next. An independent contractor, on the other hand, will actually perform the work. The difference is not always a bright line and will vary depending on the circumstances. In some cases, a service provider will evaluate, recommend, and then perform. In that case, they are acting as a consultant first and then an independent contractor. It is also important to properly consider the differences between an independent contractor and an employee.

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