The Two Contracts Every Freelancer Needs (And What Happens Without Them)

Freelancing comes with freedom, flexibility, and the ability to grow your own business, but it also comes with risk. One miscommunication, one late payment, or one bad client can lead to frustration, lost income, or worse, a legal nightmare.

Having strong freelancer contracts in place isn’t just a good idea, it’s essential. Without a contract, you’re gambling with your business. Clients can disappear without paying, disputes can spiral out of control, and subcontractors might claim ownership of the work you paid for.

Let’s talk about the two most important contracts every freelancer needs:

• A Client Agreement
  (purchase a template)
• A Subcontractor Agreement
  (purchase a template)

Client Agreement: Protect Your Work, Time, and Income

Every project you take on should be covered by a freelancer client agreement, because a handshake or email agreement isn’t enough when things go wrong. A client contract does two major things:

• It forces both parties to think through potential issues before they happen.
• It protects you in case of a dispute, giving you legal leverage to get paid and enforce your rights.

One of the best structures for a freelancer contract is an MSA/SOW format.

Master service agreement (MSA)

The MSA lays out the legal terms that apply to every project you do for a client. Key provisions include:

• Payment terms (how much, when, what happens if they don’t pay)
• Ownership of intellectual property (consider making IP transfer contingent on full payment)
• Confidentiality obligations (who owns the work, what stays private)
• Termination rights (how can you or the client exit the agreement)
• Legal provisions (assignment, governing law, dispute resolution, and other boilerplate terms)

Statement of work (SOW)

Each project should have its own SOW, which outlines:

• That it is subject to the MSA
• Service terms (what will you do, what won’t you do)
• Payment details (flat fee, hourly, milestone-based payments)
• Project timelines

A strong client agreement makes a huge difference in how smoothly a project runs. If a client refuses to sign a contract or pushes back on standard protections, that’s a red flag.

Subcontractor Agreement: Build Strong Relationships

Many freelancers eventually hire subcontractors to help with projects. If you do, you need a freelancer subcontractor agreement (often called an independent contractor agreement, or just contractor agreement).

How it’s different from a client agreement

A subcontractor contract is similar to a client contract but should be tailored to protect you as the hiring party. A few important differences:

• Independent work warranties: The subcontractor should confirm that working for you doesn’t violate agreements with another employer.
• Intellectual property transfer: You must explicitly state that you own the work they create. Without this, they might legally retain ownership, making it impossible for you to pass rights to your client.

Why your client agreement impacts your subcontractor agreement

Your subcontractor’s work is often tied to your own client obligations. That means:

• Your subcontractor may need insurance or NDAs if your client requires them.
• You must be able to terminate their agreement if your client cancels a its cli. agreement with you.

Without these protections, you could end up in a legal mess, paying subcontractors for work you can’t use or even facing claims from clients.

Best practices for Kansas City and Boulder freelancers

Freelancers in Kansas City, Boulder, and beyond have a few options for setting up contract templates. Here’s what you need to know:

Draft your own

If you write your own contract, think through all the what-if scenarios to ensure you’re covered.

Copy from past clients or contractors

You might borrow contract language from past work agreements, but these contracts weren’t written with your interests in mind. For that reason, you need to be very careful to ensure you are not adding something into your new agreement that is against your interests.

Find a free template online

There are plenty of free contracts on the internet, but be careful. Many are poorly written, don’t align with Kansas or Missouri law, or leave freelancers exposed to risk. If you use a free template, make sure you trust the source.

Buy a contract template from a trusted source

A good contract template is a smart investment. If you’re looking for a freelancer contract that actually protects you, I sell attorney-drafted contract templates in my contract shop.

Hire a lawyer to create custom contracts

If your work is highly specialized, hiring a lawyer to create custom contracts is the best option. An attorney can help:

• Draft a contract library you can reuse.
• Customize templates for your specific industry and risks.
• Ensure compliance with Kansas, Missouri, or Colorado law.

Don’t risk your business with bad contracts

A strong contract doesn’t just protect your income, it protects your reputation, your legal rights, and your ability to grow your freelance business.

If you’re serious about freelancing, you need contracts that actually work. Whether you buy a professional template or have one drafted by a lawyer, don’t wait until a bad client or subcontractor situation forces you to learn this lesson the hard way.

*This article is general in nature and is not legal advice.