Georgia Independent Sales Representative Agreement with Developer of Computer Software with Provisions Intended to Satisfy the Internal Revenue Service's 20 Part Test for Determining Independent Contractor Status In the state of Georgia, an Independent Sales Representative Agreement with a Developer of Computer Software is a legally binding document that outlines the terms and conditions between a sales representative and a software developer. This type of agreement is designed to ensure compliance with the Internal Revenue Service's (IRS) criteria for determining independent contractor status, specifically the 20 part test. 1. Parties involved: The agreement should clearly identify the parties involved, namely the independent sales representative and the software developer. Their legal names, addresses, and contact information should be clearly stated to establish a well-defined relationship. 2. Term of agreement: The agreement should specify the duration for which the independent sales representative will represent the software developer. It could be a fixed term or an ongoing agreement subject to termination clauses. 3. Independent contractor status: The agreement should contain provisions that firmly establish the independent contractor relationship between the sales representative and the software developer. This ensures compliance with IRS guidelines for determining independent contractor status, protecting both parties from any potential misclassification issues. 4. Scope of representation: The agreement should clearly outline the scope of the sales representative's responsibilities and the specific software products they will be representing. This includes describing the target market, territory, and any restrictions or exclusivity rights. 5. Compensation and commission structure: The agreement should detail the compensation structure, including the commission percentage or fee structure the sales representative will receive for their sales efforts. It should also outline the payment frequency and any additional incentives or bonuses. 6. Non-compete and non-disclosure: To protect the software developer's intellectual property and business interests, the agreement should incorporate non-compete and non-disclosure clauses. These will prevent the sales representative from engaging in competing activities or disclosing confidential information during and after the agreement's termination. 7. Termination: The agreement should define conditions under which either party can terminate the agreement. This includes providing notice periods, grounds for termination, and any potential penalties or consequences. 8. Governing law and jurisdiction: This section clarifies that the agreement will be governed by the laws of Georgia and determines which courts will have jurisdiction in case of any disputes or legal actions. Different types of Georgia Independent Sales Representative Agreements with Developers of Computer Software with Provisions Intended to Satisfy the IRS's 20 Part Test for Determining Independent Contractor Status may vary based on specific terms and provisions that are unique to each agreement. For example, the agreement may include provisions related to exclusive territories, marketing support, or specific sales targets. However, the overall structure and key elements mentioned above remain consistent to meet IRS requirements for classifying the sales representative as an independent contractor rather than an employee.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.