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In this video tutorial, Matthew guides viewers on creating an independent contractor agreement using Legal Templates. He instructs to click the link provided in the video description, which leads to the website. From there, users should access the business forms and select the "Service Contracts" section, then choose the "Independent Contractor Agreement." Matthew selects Texas as the state for the template. He advises viewers to enter the client's general information, including the name and address, and then input the independent contractor’s details. Viewers are prompted to define the type of services being provided, the compensation structure, and reimbursement for expenses.