Maine 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 Introduction: The Maine 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 (hereinafter referred to as the "Agreement") establishes a legal contract between an independent sales representative and a software developer based in Maine. The Agreement includes specific provisions intended to comply with the guidelines set forth by the Internal Revenue Service (IRS) to determine the independent contractor status. Key Provisions: 1. Parties Involved: The Agreement clearly identifies the independent sales representative and the software developer, including their legal business names and contact information. It specifies that the relationship between the parties is that of an independent contractor and not that of an employee. 2. Scope of Work: The Agreement outlines the specific responsibilities and tasks the independent sales representative will undertake, such as promoting and selling the developer's computer software within a designated territory or market segment. It states that the representative will use their own resources and business methods to fulfill these obligations. 3. Compensation: The Agreement details the agreed-upon compensation structure, including commission rates, bonuses, or other forms of payment for successful sales made by the representative. It further emphasizes that the representative is responsible for their own taxes on earned income and that the developer will not withhold any taxes or provide benefits typical of an employer-employee relationship. 4. Control and Independence: To satisfy the IRS 20 Part Test, the Agreement specifies that the independent sales representative maintains control over their working hours, workplace, and methods to achieve sales goals. It explicitly states that the representative is not subject to the developer's direct control and supervision in carrying out their duties. 5. Expenses: The Agreement addresses the issue of expenses incurred by the representative in relation to their sales activities. It clarifies that the representative shall be solely responsible for all business-related expenses, including travel, samples, and office supplies. No reimbursement for these expenses will be provided by the developer. 6. Termination: The Agreement outlines the conditions under which either party may terminate the agreement, including provisions for notice period and grounds for termination. It further emphasizes that the termination of the Agreement will not result in any right to severance pay or continued compensation for the independent sales representative. Types of Maine 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: 1. Exclusive Sales Representative Agreement: This type of agreement grants the independent sales representative exclusive rights to sell the developer's computer software within a specified territory or industry segment. 2. Non-Exclusive Sales Representative Agreement: In this agreement, multiple independent sales representatives can operate simultaneously within the same territory, avoiding exclusivity while still complying with the independent contractor status requirements. Conclusion: The Maine 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 establishes a legally binding relationship between the independent sales representative and the software developer. By adhering to the IRS guidelines, this agreement ensures compliance with the independent contractor status determination while protecting the rights and responsibilities of both parties involved.
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.