Michigan accounting independent contractor agreement template

Michigan Accounting Independent Contractor Agreement

This Michigan Accounting Independent Contractor Agreement is made and entered into as of [Date] by and between:

[Client Business Name], a [Client Business Type, e.g., Corporation] with its principal place of business at [Client Business Address, including city and county in Michigan] ("Client"),

and

[Contractor Business Name or Individual Name], a [Contractor Business Type, e.g., Sole Proprietorship, LLC, Individual] with its principal place of business or registered business address at [Contractor Business Address, including city and county in Michigan] ("Contractor").

Scope of Services

Option A: The Contractor agrees to perform the following accounting services for the Client: [Detailed description of accounting services, e.g., monthly bookkeeping, payroll processing, tax preparation, financial statement preparation, Michigan sales tax filing, etc.]. This includes, but is not limited to, [List specific tasks and deliverables].

Option B: The Contractor will perform services as detailed in Exhibit A attached hereto and incorporated by reference. The specific services may be modified by mutual written agreement.

Term and Termination

Option A: This Agreement shall commence on [Start Date] and shall continue until [End Date], unless sooner terminated as provided herein.

Option B: This Agreement shall commence on [Start Date] and continue on a month-to-month basis until terminated by either party with [Number] days written notice.

Termination for Cause: Either party may terminate this Agreement immediately upon written notice if the other party materially breaches this Agreement, including but not limited to:

• Failure to perform services in a professional manner.
• Violation of confidentiality obligations.
• Failure to comply with applicable Michigan laws and regulations.

Compensation

Option A: The Client shall pay the Contractor an hourly rate of [Dollar Amount] per hour for services rendered.

Option B: The Client shall pay the Contractor a flat fee of [Dollar Amount] per [e.g., month, project].

Option C: The Client shall pay the Contractor according to the fee schedule attached as Exhibit B.

Invoicing and Payment:

• The Contractor shall submit invoices to the Client [Frequency, e.g., monthly, bi-weekly].
• Payment is due within [Number] days of receipt of invoice.
• Late payments shall accrue interest at a rate of [Percentage] per month, or the maximum rate permitted by Michigan law, whichever is lower.
• The Client is responsible for filing IRS Form 1099-NEC for payments made to the Contractor.

Expenses:

• Option A: The Contractor is responsible for all expenses incurred in connection with the performance of services.
• Option B: The Client shall reimburse the Contractor for pre-approved reasonable expenses, supported by receipts.

Independent Contractor Status

The Contractor is an independent contractor and not an employee, partner, or agent of the Client.

The Client shall not be responsible for withholding any taxes or providing any benefits to the Contractor.

The Contractor is responsible for paying all applicable federal and Michigan taxes, including estimated taxes, self-employment taxes, and all other applicable taxes.

The Contractor is solely responsible for obtaining and maintaining all necessary licenses and permits required to perform the services in Michigan, including but not limited to any required registration with the Michigan Department of Licensing and Regulatory Affairs (LARA).

Ownership of Work Product

All work product, data, and materials created or provided by the Contractor in connection with this Agreement shall be the exclusive property of the Client.

The Contractor agrees to comply with the AICPA Code of Professional Conduct and the Michigan Accountancy Act.

Confidentiality

The Contractor agrees to hold all confidential information of the Client in strict confidence and not to disclose such information to any third party.

This obligation shall survive the termination of this Agreement.

Insurance

The Contractor shall maintain professional liability (errors and omissions) insurance with a minimum coverage of [Dollar Amount].

The Contractor shall provide the Client with proof of insurance upon request.

Indemnification

The Contractor agrees to indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, costs, and expenses arising out of or relating to the Contractor's performance of services under this Agreement, except to the extent caused by the Client's gross negligence or willful misconduct.

Breach

Material breach of this agreement includes, but is not limited to, late or substandard deliverables, noncompliance with Michigan accountancy laws, or unauthorized disclosure of confidential information.

Upon written notification of a breach, the breaching party shall have [Number] days to cure the breach.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through:

• Step 1: Good faith negotiation between the parties.
• Step 2: If negotiation fails, mediation in [City, Michigan].
• Step 3: If mediation fails, binding arbitration in accordance with the rules of the American Arbitration Association, or litigation in the Circuit Court of [Relevant Michigan County].

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan.

Venue and jurisdiction for any legal action relating to this Agreement shall be exclusively in the Circuit Court of [Relevant Michigan County].

Compliance

The Contractor represents and warrants that they are duly licensed and qualified to perform the services in Michigan, and will comply with all applicable Michigan laws and regulations. This includes, but is not limited to, holding a valid Michigan CPA license (if required for the services), adhering to all Michigan rules and continuing professional education (CPE) requirements, staying current on Michigan tax codes and business regulations, meeting any local city/township registration or business licensing requirements, and complying with Michigan-specific anti-fraud, anti-money laundering, and data breach notification statutes.

Non-Solicitation and Non-Competition

The Contractor agrees not to solicit or attempt to solicit any of the Client's employees or customers for a period of [Number] years following the termination of this Agreement within [Geographic Area, e.g., the State of Michigan].

The Contractor agrees not to engage in any business that directly competes with the Client's business for a period of [Number] years following the termination of this Agreement within [Geographic Area, e.g., the State of Michigan], limited to the provision of [Specific Services].

Amendments

This Agreement may be amended only by a written instrument signed by both parties.

Severability

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter hereof.

Waiver

No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Client Business Name]

By: [Client Name]

Title: [Client Title]

[Contractor Business Name or Individual Name]

By: [Contractor Name]

Title: [Contractor Title, if applicable]