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Commonly Asked Questions about Delaware Contractor Agreements

The Delaware Contractor Registration Act creates a contractor registration system to effectively regulate employee misclassification by doing all of the following: Requires contractors to pay a small annual fee and apply for a certificate of registration to engage in construction activities in this State.
As mentioned, an independent contractor agreement is a legally binding contract between an individual contractor and a company (i.e. your business). It outlines the key elements of the collaboration, such as: The scope and nature of the contractors role.
Any contractors conducting business activity in Delaware are required to register with and obtain a business license from the Delaware Division of Revenue.
This legal contract usually includes information regarding the scope of the work, payment, and deadlines. The agreement might also provide guidance regarding any confidentiality requirements, insurance, and indemnification. Independent contractor agreements go by many names, including: Independent Contractor Contracts.
Delaware does NOT require an operating agreement. However, it is highly recommended to have a LLC operating agreement even if you are only a single member LLC. The state of Delaware recognizes operating agreements and governing documents.
Here are some items to consider: Establish the contractor relationship. Define length of engagement for independent contractor jobs. Determine scope of work and deliverables. Agree on payment terms. Professional obligations. Maintain confidentiality. Put in a non-solicitation clause. Indicate grounds for termination.
An independent contractor agreement has to contain the following basic information: Hiring party (person or entity in need of special services) Contractor (person or entity hired for a project/task) Services (specific description of the services to be provided by the contractor)
The contract should include the total price, when payments will be made, and whether there is a cancellation penalty. You should expect to make a down payment on any home improvement job. That down payment should never exceed 10 percent of the contract price or $1,000, whichever is less.