A South Dakota independent contractor agreement is a document created for the purpose of establishing a legal relationship between two parties; an independent contractor and their client. An independent contractor is a person or business entity hired under a contract to perform a service for a client within a specified time-frame. Unlike an employee, a contractor works for themselves but gets hired temporarily by other individuals/businesses. Due to their employment status, they are in charge of their own taxes, workers’ and unemployment compensation, insurance, and permits. The independent contractor agreement helps enact this status while outlining the terms of the arrangement – compensation, services to be completed, expenses, confidentiality, assignment, and delegation, etc.

Laws§ 61-1-11