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In this video, Matthew demonstrates how to create an independent contractor agreement using legaltemplates.net. He directs viewers to the website, starting from the business forms on the top of the screen and selecting the service contracts section. He chooses the independent contractor agreement option and selects Texas as the state. Matthew emphasizes filling out the client's general information, including the client and independent contractor's details. The video covers specifying the services provided, outlining the compensation method, and detailing expense reimbursement for the independent contractor.