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In this video, Matthew demonstrates how to create an independent contractor agreement using LegalTemplates.net. He guides viewers to click on the link provided, navigate to the business forms section, and select the independent contractor agreement. After choosing Texas as the state, he explains the process of entering client and contractor information. Matthew emphasizes the importance of specifying the services provided, the compensation structure, and how expenses will be reimbursed. He encourages users to fill out the details accurately based on their specific needs.