How to Invoice as a Contractor in the US

Getting invoicing right as a contractor

Whether you're a one-person operation or running a crew, professional invoicing is the difference between getting paid on time and chasing money for weeks. Here's what you need to know.

What goes on a contractor invoice

Every invoice should include: your business name, address, and contact details; the customer's name and address; a unique invoice number; the date; a detailed description of the work performed; itemised costs for labour and materials; any applicable tax; the total amount due; your payment terms; and how the customer can pay you.

Payment terms that work

Net 30 is standard for commercial work, but many contractors are moving to Net 15 or even due-on-completion for residential jobs. For larger projects, progress billing (invoicing at milestones) keeps cash flowing. Whatever terms you choose, state them clearly on every invoice and discuss them before starting work.

The 1099 question

If you receive $600 or more from a single client in a tax year, they're required to issue you a 1099-NEC. Keep accurate records of all invoices and payments — your accountant will need them at tax time. If you pay subcontractors $600 or more, you'll need to issue 1099s to them as well.

Sales tax — the complicated part

Sales tax on contractor services varies by state, county, and even city. In general, most states exempt labour for new construction but tax repair and maintenance labour. Materials incorporated into a project are usually taxable regardless. The safest approach is to work with a local accountant who understands your state's rules. UteQuote lets you set your tax rate or mark items as tax-exempt — but the rate itself is your responsibility.

Getting paid faster

Three things get you paid faster: invoice immediately (the same day you complete the work), make it easy to pay (accept credit cards, Venmo, Zelle, or direct deposit), and follow up promptly (a friendly reminder at 7 days, a firm one at 14). Professional-looking invoices also get paid faster than handwritten ones — they signal that you run a real business.