To protect u, u might want to at least get an electronic signature. Not sure how to do that tho, but a fax copy of a signed paper saying ur hired for work will protect u both. As far as taxes, I dun worry about it. U dont need to tax as long as u report ur earnings, the government will just tax out of that. If u want to compensate for what the gov. takes out in takes, u might want to raise ur prices a little maybe by $1 or 3 per hour.
You should always have a contract stating at the minimum the following :
1. What is the project (exact details)
2. What is the timeline
3. What are the deliverables
4. Who owns what
5. What should the client provide (in terms of content, and in terms of access)
6. What happens if terms are broken?
This is to protect both you and your client. Once you have come up with the contract, you should have it signed by someone who is authorized to sign. In most countries, you should be 18+ to enter into legally binding contracts.
As far as taxing is concerned, this really depends on where you are and your local tax laws. Ask your family's tax advisor.
As for the hourly rate, it depends on your costs and market. You should do some research and not just throw out numbers Google for salary ranges in your area (if applicable).
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