How to Invoice as a Contractor in the USA

Invoicing as a self-employed contractor in the US doesn’t have to be complicated. But there are a few things — sales tax, payment terms, what information to include — that trip people up. This guide covers everything you need to send professional invoices and get paid fast.

What should a US contractor invoice include?

A professional US contractor invoice needs:

Your details:

Business name (or your full name if sole proprietor)
Business address
Phone and email
EIN (Employer Identification Number) — if you have one. Sole proprietors can use their SSN but an EIN is better for privacy.

Customer details:

Customer name and address
For 1099 purposes: if you’re billing a business over $600 in a year, they’ll need your EIN or SSN

Job details:

Invoice number (sequential — important for your tax records)
Invoice date
Description of work performed
Line items: parts, labour, materials (itemised)

Totals:

Subtotal
Sales tax (if applicable — see below)
Total amount due

Payment details:

Payment methods accepted
Payment due date (Net 30, Net 15, or “Due on receipt”)

How does sales tax work for US contractors?

Sales tax for contractors is one of the most confusing areas of US invoicing. Here’s the short version:

Labour: In most states, labour for services is not subject to sales tax. You don’t charge sales tax on your hourly rate or job fee in most cases.

Materials/parts: If you sell parts or materials separately (or as part of the job), these may be taxable depending on the state.

State-specific rules: Sales tax is state-administered in the US — there’s no federal sales tax. Rules vary significantly by state. Some states tax all services; some tax none; some tax specific types.

When to collect sales tax: You need to collect and remit sales tax if you have “nexus” (a business presence) in the state. If you work exclusively in one state, that’s your nexus state.

For most contractors: If you’re a sole-trader contractor working locally, check your state’s rules. Most states don’t tax general labour services, but materials may be taxable. A quick search for “[your state] contractor sales tax” or a conversation with a local accountant will clarify your situation.

In Spanner, you can set a sales tax rate (or leave it at 0%) for US accounts. Set it once and it applies to all invoices.

How to create a professional invoice on your phone

Old way: open Word, find your template, fill in the details, calculate tax manually, save as PDF, email it. Takes 10–15 minutes.

Better way:

Open Spanner — tap New Invoice
Add the customer — search by name or phone. Repeat customers auto-fill.
Enter line items — description, quantity, price for each item
Set sales tax — if applicable for your state and the type of work
Share — WhatsApp, email, or PDF. Done in under 2 minutes.

The customer gets a professional PDF invoice with your business details, sequential invoice number, itemised totals, and sales tax — ready for their records.

How to collect payment by card

Bank transfer is uncommon for consumer-facing contractors in the US. Cash is common but creates a paper trail problem. Cards are the best option.

With Spanner’s Stripe integration:

Connect Stripe (Account → Earnings → Connect Stripe) — 5–10 minute setup
Open any invoice → tap “Create Payment Link”
Share the invoice with the payment link embedded
Customer taps, pays by card in 30 seconds
You get a push notification confirming payment
Funds land in your account within 2 business days

Stripe fees for US transactions: 2.9% + 30¢ per transaction.

For a $500 invoice: fee = $14.80. That’s the cost of one phone call chasing a slow payer — and you only make that call once before the card link does it for you.

1099 and contractor tax considerations

If you’re a sole proprietor or independent contractor in the US:

Your clients pay you without withholding tax. You’re responsible for paying self-employment tax (15.3%) and income tax quarterly.
If a client pays you over $600 in a year, they’re required to send you a 1099-NEC form and report the payment to the IRS.
Keep your invoices — they’re your record of income for Schedule C and quarterly estimated payments.
Separate business and personal accounts — this makes accounting far easier and is important if you’re ever audited.

Spanner stores all your invoices. You can review your full invoice history at any time for tax preparation.

Best invoice apps for US contractors

Spanner: Built for tradespeople and mechanics. Mobile-first, Stripe card payments, booking system, quote approval. Free plan available. Best for mechanics and contractors who want to invoice fast and get paid by card. Pro from $9.99/month.

Invoice Ninja: Free and open source. Good for freelancers and service businesses. More features than you need as a tradesperson.

QuickBooks Self-Employed: Good if you need mileage tracking and quarterly tax estimates alongside invoicing. More expensive and complex than needed for simple invoicing.

For most US contractors who just want to create invoices, collect payment, and track what’s been paid — Spanner is the simplest option.

Frequently asked questions

Do US contractors need to charge sales tax? It depends on your state and the type of work. Labour services are generally not taxable in most states. Parts and materials may be. Check your state’s revenue department guidelines.

What is Net 30 on an invoice? Payment due within 30 days of the invoice date. Net 15 is due within 15 days. “Due on receipt” means pay immediately. For consumer-facing contractors, “Due on receipt” or Net 7 is common. Net 30 is typical for commercial clients.

Do I need an EIN as a sole proprietor? Not legally required if you have no employees, but recommended. An EIN keeps your SSN off invoices and business documents.

How do I invoice if I have no formal business? As a sole proprietor, invoice under your own name. Include your address and phone. Add an EIN if you have one. Your personal tax return (Schedule C) covers your business income.

See Spanner’s US invoicing features or download free — no credit card required.