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In this video, Matthew guides viewers on how to create an independent contractor agreement. He directs them to legaltemplates.net, where they can access business forms. After navigating to service contracts, he selects the independent contractor agreement option and suggests choosing Texas as the state. Matthew explains the process of entering general information for the client and the independent contractor, as well as specifying the type of services provided. He also highlights the importance of detailing compensation methods and expense reimbursements in the agreement.