What's the difference between a Work for Hire Agreement, a Consultant Agreement, and an Employment Agreement? If you aren't sure, don't worry. Most people don't fully understand the subtle differences between each and even more frequently, use the terms interchangeably. However, there are important legal and tax implications that make it worthwhile to fully understand these common terms.

Work for Hire Agreement stipulates a situation where an employer hires, commissions or pays someone else such as a Consultant, author or Independent Contractors to create a product or "work" in exchange for the compensation agreed upon. A Employment Agreements vary widely depending upon the position, industry and other negotiations but most include the following:

  • Terms of Employment
  • Compensation and Benefit Package
  • Expenses
  • Non-Compete Agreement
  • Non-Solicitation Agreement
  • Intellectual Property Rights