Typically that is how it happens. We recommend that people sign a formal contract, certainly, that outlines exactly what the length of the contract is, the reimbursement, compensation and so on, all those details, and that it speaks to the intention of the parties that they both are willingly entering into the agreement together and are not unduly being made a contractor when they don't want to be.
On April 2nd, 2019. See this statement in context.