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In this video tutorial, the importance of having a service agreement when starting a new contract is emphasized. Newbies in the business may be eager to start work and provide all necessary documents requested by the hiring company, such as insurance information, EIN number, and W9 form. However, it is crucial to protect oneself by ensuring a service agreement is in place to outline terms and protect both parties involved. Moving quickly to start work should not come at the expense of neglecting to establish a formal agreement for mutual protection.