Sovereign Independent Contractor Agrmnt

VIP - Sovereign Independent Contractor Agreements

Independent Contractor Agreement – How To

We have updated this contract since this video. You may notice small differences. Sum and substance are still the same. This will still allow you to comprehend this process and why you need it. You have the most up-to-date version of this contract.

This page introduces you to a new understanding of how to lawfully earn a non‑taxable living by using Independent Contractor Agreements designed for unregistered, unincorporated societies like yours.

What Does an Independent Contractor Agreement Mean?

This agreement is key to protecting you from liability as your society grows. Anyone you associate with, hire, or work alongside must sign or agree to this contract.

Why?

It shifts liability away from you for anyone else’s actions.
Each person is accountable for themselves.
This is essential for founders, members, and contractors alike.
Without it, your society risks legal and financial exposure.

Why Does This Make Me Tax Exempt?

Our contract is designed to keep payments tax exempt because:

All payments are defined as gifts between independents.
Your society is unregistered and unincorporated, not a corporation.
Only corporations pay income tax on earnings.

If a tax authority tries to enforce taxation, they become personally liable for your time and any harm caused. You have access to litigation documents to serve notice of this liability if needed.

Gift / Pay Schedule

For every person you hire or pay, create a Gift / Pay Schedule.
This document details the gifts/payments made, maintaining the tax-exempt status.

How To Use the Independent Contractor Agreement

Download the University’s version of the Independent Contractor Agreement and Gift / Pay Schedule templates below.
Keep the template intact except for replacing the society name with your own.
Do not alter the legal language unless you are fully versed in lawful contract drafting.
You are responsible for how you use and apply this contract.

Summary – What To Do

Understand that this contract is your shield against liability.
Ensure everyone in your society signs an Independent Contractor Agreement.
Use the contract to define all payments as gifts between independents.
Maintain a Gift / Pay Schedule for each contractor or member you pay.
Download and use the University’s templates, customizing only the society name.
Keep the contract updated and enforce it consistently to maintain your tax-exempt status.

By following these instructions, you will lawfully protect your society and its members while earning a non-taxable living as independent contractors.

What is the main purpose of the Independent Contractor Agreement for your society?
a) To register your society as a corporation
b) To protect you from liability as your society grows
c) To apply for government grants
d) To replace all other contracts
Who should sign or agree to the Independent Contractor Agreement?
a) Only the founder
b) Only paying members
c) Anyone you associate with, hire, or work alongside in your society
d) Only external vendors
How does the Independent Contractor Agreement affect liability?
a) It makes the founder liable for everyone’s actions
b) It shifts liability away from you so each person is accountable for themselves
c) It removes all liability from everyone
d) It has no effect on liability
Why is this structure described as making your income tax‑exempt?
a) Because you never report income
b) Because the society is a registered charity
c) Because payments are defined as gifts between independents and the society is unregistered and unincorporated
d) Because the bank waives taxes
According to the text, who pays income tax on earnings?
a) Only unincorporated societies
b) Only individuals
c) Only corporations
d) Everyone equally
What happens if a tax authority tries to enforce taxation under this framework?
a) Nothing can be done
b) They become personally liable for your time and any harm caused
c) You automatically go to court
d) Your society loses its status
What is the purpose of a Gift / Pay Schedule?
a) To calculate corporate tax
b) To track volunteer hours only
c) To detail gifts/payments made to each person and maintain tax‑exempt status
d) To set bank interest rates
For whom should you create a Gift / Pay Schedule?
a) Only for full‑time staff
b) For every person you hire or pay
c) Only for donors
d) Only for the founder
What are you instructed to do with the University’s Independent Contractor Agreement template?
a) Rewrite all the legal language
b) Use it as inspiration but not actually use it
c) Keep it intact and only replace the society name with your own
d) Translate it into another language
When are you allowed to alter the legal language of the contract?
a) Anytime you want
b) Only if you are fully versed in lawful contract drafting
c) Never under any circumstances
d) Only with verbal permission
Who is responsible for how the Independent Contractor Agreement is used and applied?
a) The bank
b) The University
c) You (the society founder/administrator)
d) The contractor
How does the contract define payments to support tax‑exempt status?
a) As wages and salaries
b) As loans
c) As gifts between independents
d) As dividends
What is one key instruction in the summary?
a) Ensure only the founder signs the Independent Contractor Agreement
b) Ensure everyone in your society signs an Independent Contractor Agreement
c) Avoid using written contracts
d) Use verbal agreements only
Why is it important to keep the contract updated and enforced consistently?
a) To qualify for corporate tax credits
b) To maintain your tax‑exempt status and liability protection
c) To increase bank interest
d) To comply with employment law
What overall outcome does following these instructions aim to achieve?
a) A taxable corporate salary structure
b) Lawful protection of your society and members while earning a non‑taxable living as independent contractors
c) Government registration as a charity
d) Elimination of all financial records

Answer Key