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In this video tutorial, Matthew guides viewers on creating an independent contractor agreement using legaltemplates.net. He instructs to click the link provided in the video description, navigate to the business forms section, and select service contracts. After choosing the "independent contractor agreement," viewers are prompted to select their state, with Texas being used as an example. Matthew emphasizes entering the general information for both the client (Mr. Ed or the viewer, if they are the client) and the independent contractor. He discusses filling out details about the services offered, compensation, and expense reimbursement for the contractor.