How to Invoice as an Independent Contractor
As an independent contractor, your invoice is how you get paid and how you keep clean records for tax time. It's straightforward once you know the essentials — plus a couple of things that are specific to US contractors, like the W-9 and 1099 relationship with your clients.
The W-9 and 1099 relationship (quick version)
In the US, when you start work with a business client you'll usually give them a Form W-9 with your name, address, and taxpayer ID (your SSN or, better, an EIN). If they pay you $600 or more in a year, they report it to the IRS on a Form 1099-NEC and send you a copy. Your invoices are your own record of what you billed — they should line up with those totals. Unlike an employee, no tax is withheld from your pay, so you're responsible for your own taxes.
What to include on a contractor invoice
- Your business name (or legal name) and contact details — plus your EIN if you use one
- The client's business name and billing contact
- A unique invoice number and the issue + due dates
- An itemized breakdown of labor (hours × rate or a flat amount) and any materials
- A reference to the job, project, or PO number if the client uses one
- The subtotal, sales tax if you're required to charge it, and the total due
- Payment terms and methods — due date and how to pay
How to create a contractor invoice, step by step
- Add your details and the client's. Include your EIN if you invoice under a business.
- Reference the job. Note the project name or PO number so the client's accounts team can match it.
- List labor and materials separately. Clear line items reduce back-and-forth and speed approval.
- Total it up. Subtotal, add sales tax if applicable, show the total due and currency.
- Set terms and send a PDF. State the due date and payment method, export to PDF, and send promptly.
Create your contractor invoice free
Separate labor and materials, auto-total it, and export a clean PDF — no sign-up, nothing stored online.
Open the free generator →A contractor invoice example (labor + materials)
| Description | Qty/Hrs | Rate | Amount |
|---|---|---|---|
| Labor — installation | 16 | $65.00 | $1,040.00 |
| Materials — fixtures & fittings | 1 | $430.00 | $430.00 |
| Disposal & cleanup | 1 | $120.00 | $120.00 |
| Subtotal | $1,590.00 | ||
| Sales tax (6%) | $95.40 | ||
| Total due (USD) | $1,685.40 | ||
For the full field-by-field breakdown, see how to write an invoice.
Progress billing & getting paid
- On bigger jobs, use progress billing — invoice in stages (e.g., deposit, mid-job, final) to keep cash flowing.
- Ask for a deposit up front to cover materials.
- Put a specific due date on every invoice and offer an easy payment method.
- Send promptly and follow up with a polite reminder around the due date.
FAQ
Do I need to send an invoice if the client issues a 1099?
Yes — a 1099 is the client's year-end report to the IRS, not a substitute for billing. You still send invoices to request payment and keep your own records.
Should I use my SSN or an EIN on invoices?
Many contractors get a free EIN from the IRS so they don't have to share their SSN with every client. An EIN on your invoice and W-9 keeps your personal number private.
Do independent contractors charge sales tax?
It depends on your state and whether the service or materials are taxable. If you're registered to collect sales tax, show it as a separate line. Check your state's rules.
Is a contractor invoice different from a freelancer's?
They're nearly identical. Contractors more often bill labor plus materials and reference a job or PO number. See invoicing as a freelancer.