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A personal service contract establishes a working relationship between a company and an individual or business in the personal service industry. Personal services, as defined by the IRS, encompass activities in accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and performing arts. These services are typically intangible, meaning the final product is not a physical item. Consulting represents one of the broadest areas in this industry, though any mentioned trade can utilize a personal services contract. It's essential to create a clear agreement before hiring an independent contractor or accepting work, which should at a minimum include the names of the parties and the date of the agreement.
