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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 in the video description, which leads to LegalTemplates.net. Once there, he recommends navigating to the "Business Forms" section and selecting "Service Contracts," specifically the "Independent Contractor Agreement." Matthew chooses Texas as the state for the agreement and explains entering general information for both the client and the independent contractor. He emphasizes documenting the type of services provided and details regarding compensation and expense reimbursement for the contractor.