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A personal service contract defines 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 the performing arts. These services are typically intangible, meaning the end product cannot be physically held. Consulting is a broad area within personal services but contracts can apply to any of the mentioned fields. Before hiring an independent contractor or accepting contractual work, it’s essential to establish a clear agreement that includes, at a minimum, the names of the parties and the date of the agreement.
