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In this video, Matthew demonstrates how to create an independent contractor agreement using legaltemplates.net. He instructs viewers to click the provided link and navigate to the business forms section, selecting the independent contractor agreement under service contracts. Matthew chooses Texas as the state for the agreement. He emphasizes the need to enter general information for both the client and the independent contractor. Viewers are guided to specify the type of services provided and outline details regarding compensation and expense reimbursement for the contractor.