What Is a Reasonable Up-Front Deposit for a Contractor? Job SizeDeposit Small 50% Large 10%–20% Custom or specialized Up to 50%
Write the contract in six steps Start with a contract template. Open with the basic information. Describe in detail what you have agreed to. Include a description of how the contract will be ended. Write into the contract which laws apply and how disputes will be resolved. Include space for signatures.
Form W-9. If you've made the determination that the person you're paying is an independent contractor, the first step is to have the contractor complete Form W-9, Request for Taxpayer Identification Number and Certification.
Acceptance of an offer: After one party makes an offer, it's up to the other party to accept it. If someone offers you $600 to walk their dogs, for example, you enter into a contractual agreement the moment you accept their offer in exchange for your services.
Every such contract requires: The name of the contractor, the contractor's business address and license number. The name and mailing address of the owner and the jobsite address or legal description. The date the parties entered into the contract.