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In this tutorial, Matthew explains how to create an independent contractor agreement using legaltemplates.net. He begins by directing viewers to the website and navigating to the "business forms" section, specifically the "service contracts" category. He chooses Texas as the applicable state and starts to input general information about the client and the independent contractor. Viewers are instructed to specify the services provided and detail the payment structure as well as any reimbursement for expenses. The tutorial focuses on form completion to ensure a comprehensive agreement between the parties involved.