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In this video, the importance of signing a consulting agreement is highlighted to avoid disputes over billing and engagement. Key points to cover in the agreement include the client hiring your business as an independent contractor, payment terms, acceptable methods of payment, and signatures from both parties. Sample consulting agreement templates are provided, with the reminder that the contract is often biased towards the party that wrote it. It is recommended to have clients sign your contract, and to carefully review and discuss any discrepancies in the contract if using the client's agreement.