Can I invoice clients without a formal business structure in the US?

Invoicing in the US Without a Formal Business Structure: What’s Allowed and What to Watch Out For

If you’re starting out as a freelancer, consultant, creator, or side hustler, it’s completely normal to wonder whether you’re “allowed” to invoice clients before you form an LLC or corporation. The short answer is: yes, in most cases you can invoice clients in the United States without forming a formal business entity first. Many people legally earn income and bill clients as individuals every day.

That said, “can I invoice?” and “should I invoice this way?” are two different questions. Invoicing without a formal structure is usually straightforward, but it comes with responsibilities: taxes, accurate recordkeeping, and understanding how your personal liability works. This article breaks down how invoicing works when you don’t have an LLC, what information you should put on invoices, how clients typically handle paying individuals, and when it may make sense to formalize your setup.

What “No Formal Business Structure” Usually Means in the US

When people say they don’t have a formal business structure, they typically mean they haven’t formed an LLC, corporation, or partnership with the state. In the US, the default option for someone doing business alone is usually a sole proprietorship, even if they never file paperwork to “create” one.

A sole proprietorship is not a separate legal entity. It’s simply you doing business. You can still sell services, collect payment, sign contracts, and invoice clients under your own legal name. Some people also use a “doing business as” name (often called a DBA or fictitious business name) so the business can appear more professional, but a DBA is not the same thing as forming an LLC or corporation.

So, if you’re working independently and haven’t formed a company, you’re likely operating as a sole proprietor by default. This is common for:

• Freelancers (designers, writers, developers, marketers)

• Consultants and coaches

• Tutors and educators

• Handymen and home services

• Photographers and videographers

• Creators offering services, sponsorships, or production

Yes, You Can Invoice Clients as an Individual

There’s no federal rule that says you must form an LLC to invoice. Invoicing is simply a billing document: a request for payment that lists what you provided, how much is owed, and how and when to pay. Clients usually care less about your legal structure and more about clarity, professionalism, and compliance with their internal payment process.

In practice, many clients pay individuals directly—especially small businesses, startups, and individuals. Some larger companies prefer to work with vendors that have an EIN, W-9, and a consistent invoicing format, but even then you can often meet those requirements without forming an LLC.

Invoicing as an individual is especially common when you’re testing a new service, building a portfolio, or doing part-time work before committing to a full business setup.

What Clients Need From You to Pay an Invoice

The main reason people think they “can’t invoice” without a business structure is because they run into payment onboarding requests. A client might ask for a W-9, your tax identification number, or a “company name.” The good news is that individuals can typically provide these items.

W-9 Forms and Invoices: Different Purposes

Clients often request a W-9 from US-based contractors. This form is how you provide your name, address, and taxpayer identification number so the client can issue a 1099 (if required) for payments made to you.

A W-9 is not a business registration. If you’re invoicing as an individual sole proprietor, you can complete a W-9 using:

• Your legal name as the primary name on the form

• Your Social Security Number (SSN) as your taxpayer ID, or an EIN if you have one

• Optionally, a business name or DBA if you use one

The invoice itself is separate from the W-9. Your invoice is what triggers the payment; the W-9 is for the client’s tax and compliance records.

Do You Need an EIN to Invoice?

No. You can invoice using your SSN as your taxpayer ID when needed for tax forms (like a W-9), although many people prefer not to share their SSN broadly. An EIN (Employer Identification Number) can sometimes be obtained by a sole proprietor even without employees, and it can be used in place of your SSN for forms. This can feel more professional and can reduce the need to share your SSN with multiple clients.

However, you can still invoice and get paid without an EIN. The essential requirement is that you can receive payment and report income properly.

Payment Methods When You Don’t Have a Business

You don’t need a business bank account to invoice (though it can help a lot). Many people start by receiving payments through:

• ACH bank transfer to a personal bank account

• Check made out to their legal name

• Card payments via online payment links

• Payment apps or platforms depending on the client

The key is that the payee name on the invoice should match the payee name that the client can actually pay. If you invoice under a brand name but your bank account is only under your legal name, you’ll want to make it clear who should be paid and how.

What to Put on an Invoice If You’re Not an LLC

A strong invoice is clear, professional, and includes enough detail for the client to approve and pay it quickly. If you’re invoicing without a formal business structure, you can still create a polished invoice that looks like any other vendor invoice.

Here are the core elements to include:

Your Identity and Contact Details

At minimum, include:

• Your legal name (or your DBA if you use one, ideally paired with your legal name)

• Your email address

• Your mailing address (often requested by accounting departments)

• Your phone number (optional, but can help)

If you use a brand name, consider formatting it like: “Brand Name (Legal Name).” This is often the easiest way to match professional branding with how payments are actually issued.

Client Details

Include the client’s name, company name (if applicable), and billing address if you have it. Some clients require a purchase order number or a specific “bill to” contact, so include those fields when provided.

Invoice Number and Date

Use a unique invoice number and include the invoice date. Sequential numbering helps you stay organized, and it makes your invoices look more legitimate to clients.

Description of Services or Deliverables

List what you provided in line items. Include:

• Service name or project name

• Date range or completion date

• Quantity/hours and rate (if hourly)

• Any agreed milestones or deliverables

For example, “Website copywriting for landing page (Phase 1)” or “Consulting services, January 5–20.”

Amounts, Taxes, and Total Due

Show subtotals and the total amount due. If you charge sales tax (only applicable in certain cases, depending on state rules and the nature of what you sell), list it clearly as a separate line item and include your applicable tax details if required.

Many service providers do not charge sales tax on services, but rules vary by state and by service type. If you’re unsure, it’s wise to research your state’s requirements for your specific offering.

Payment Terms

State when payment is due and how to pay. Common terms are:

• Due on receipt

• Net 7

• Net 15

• Net 30

If you charge late fees, include the late fee policy in your invoice terms and ideally also in your client agreement.

Payment Instructions

Make it easy to pay. Include clear instructions like:

• Bank transfer details (if you use ACH)

• A secure online payment link for card payments

• Mailing address for checks

Reducing friction is one of the fastest ways to get paid sooner.

How to Invoice Under a Business Name Without an LLC

If you want to use a business name on your invoice but you don’t have an LLC, you can often do so by using a DBA (Doing Business As) name, depending on your state and local rules. A DBA is typically a registration that allows you to operate under a name other than your legal name.

Using a DBA can help with branding and can make your invoices look more like a conventional vendor invoice. However, it doesn’t provide liability protection like an LLC does, and it usually doesn’t change how taxes work for a sole proprietor.

Even without a DBA, many freelancers still place a “studio” or “brand” name on invoices—just make sure the invoice clearly identifies who will be paid and that your client can process the payment without confusion.

Taxes: The Part You Can’t Ignore

Invoicing is the easy part. Staying compliant with taxes is what matters most over time. If you invoice clients and receive payments, you generally need to report that income.

Income Tax and Self-Employment Tax

If you’re working for yourself, your net income from the work may be subject to:

• Federal income tax

• State income tax (depending on your state)

• Self-employment tax (which generally covers Social Security and Medicare contributions for self-employed individuals)

Unlike W-2 employment, taxes usually aren’t withheld from payments to independent contractors. That means you may need to set aside money from each payment and make estimated tax payments during the year, depending on your situation.

1099 Forms: What They Mean and What They Don’t

Many clients issue a 1099-NEC to contractors when they pay them at or above the reporting threshold for the year (and when reporting is required). This doesn’t create a new tax—it’s simply a reporting mechanism.

Whether you receive a 1099 or not, you’re still responsible for reporting your income. Some clients don’t issue 1099s due to their payment method or internal processes. That doesn’t change the underlying obligation to report income accurately.

Sales Tax (Sometimes) and Local Requirements

Sales tax is a state-level issue. Some states tax certain services, digital goods, or tangible products, while others do not. If you’re selling something that could be taxable, you may need to register for a sales tax permit and collect/remit sales tax.

Additionally, some cities or counties require a general business license even if you’re operating as a sole proprietor. That requirement is separate from invoicing and separate from forming an LLC.

The big takeaway: invoicing is allowed, but you should also make sure you’re meeting your local registration and tax requirements for your type of work and location.

Liability: The Biggest Difference Between Sole Proprietor vs. LLC

From a client’s perspective, your invoice can look the same whether you’re a sole proprietor or an LLC. The major difference is what happens if something goes wrong.

When you operate as a sole proprietor, there’s no legal separation between you and the business. If you’re sued or owe a business debt, your personal assets may be at risk (subject to various legal protections and exemptions). An LLC can provide a liability shield in many situations, though it’s not absolute and depends on proper business practices and the nature of the claim.

This doesn’t mean you should panic or rush to form an LLC immediately. Many people invoice as sole proprietors for years. But it does mean you should be thoughtful about risk and protect yourself with:

• Written agreements that define scope, timelines, and payment terms

• Clear policies on revisions, refunds, cancellations, and late payments

• Professional insurance if your work carries meaningful risk (such as general liability or professional liability)

Should You Put Your SSN on an Invoice?

Most of the time, no. It’s generally better not to place your Social Security Number on invoices for privacy and security reasons. If a client needs taxpayer information for compliance, that usually belongs on a W-9, not directly on the invoice.

Invoices are often forwarded internally and stored in multiple systems. Limiting sensitive personal information on the invoice reduces the chance of exposure.

If a client insists on a tax ID number on the invoice, consider using an EIN instead of an SSN if you have one. If you don’t, you can explain that you provide taxpayer information via W-9 and keep it out of invoices.

How to Look Professional Without a Business Entity

Professionalism is more about clarity and consistency than about having “LLC” in your name. You can invoice like a pro from day one with a few practices:

Use Consistent Branding

Add your logo (if you have one), use consistent fonts and layout, and keep your invoices clean and readable. A well-designed invoice builds trust and reduces payment friction.

Use Clear Terms and Policies

Spell out due dates, accepted payment methods, late fees (if any), and what the client is paying for. Many invoice disputes are really scope disputes, so clarity up front helps.

Keep Your Records Organized

Track invoice numbers, issue dates, due dates, payments, and outstanding balances. When tax season comes, organized records can save you hours and reduce mistakes.

Offer Multiple Payment Options

Clients pay faster when the payment process is easy. Providing card payments and bank transfers can reduce delays, especially if a client’s accounting process varies by department.

Use a Modern Invoicing Tool

Using an invoicing app helps you create professional invoices in minutes, reuse client details, automate numbering, track paid/unpaid statuses, and maintain a clean record of your work. A tool like invoice24 can help you do all of this without needing an LLC, accounting software, or complicated setup.

Common Scenarios and How to Handle Them

A Client Says: “We Only Pay Businesses”

Sometimes a company’s procurement team uses the word “business” loosely when they really mean “vendor.” In many cases, they’ll still pay a sole proprietor if you provide a W-9 and invoice properly. If they insist on an EIN, you may be able to obtain one as a sole proprietor (without forming an LLC) and continue invoicing under your legal name.

A Client Wants an Invoice With a Company Name

If you don’t have an LLC, you can still invoice under your legal name and optionally list your brand name. Formatting it as “Brand Name (Legal Name)” often satisfies both branding and compliance needs.

A Client Wants You to Add Their Purchase Order Number

Add it. Some organizations won’t pay invoices that don’t reference a PO number. If they provide a PO, include it prominently near the top of the invoice.

A Client Wants Net 30 (But You Prefer Faster Payment)

Net 30 is common in corporate environments. If you want faster payment, consider:

• Requesting a percentage deposit up front

• Charging a rush fee for accelerated timelines

• Offering a small discount for early payment

If you agree to net terms, make sure you track due dates and follow up consistently.

When It Might Make Sense to Form an LLC (Even If You Can Invoice Without One)

You don’t need an LLC to invoice, but there are situations where formalizing can be worth it. Consider forming an LLC if:

• You have higher liability risk (clients rely heavily on your work, or you work on sensitive projects)

• You’re earning consistent income and want clearer separation between personal and business finances

• Clients frequently require vendor onboarding that expects a registered entity

• You plan to hire contractors or employees

• You want a business name protected at the state level (depending on your state’s rules)

For many people, the transition looks like this: invoice as a sole proprietor while validating demand, then form an LLC once revenue is steady and the added structure becomes useful.

Do You Need a Business Bank Account?

Legally, you can often start without one, especially as a sole proprietor. But in practice, a separate business bank account (even if it’s just a second checking account) can make bookkeeping dramatically easier.

Separating finances helps you:

• Track income and expenses more accurately

• Simplify tax preparation

• Provide cleaner documentation if a client requests payment verification

• Look more professional when receiving ACH transfers

If you later form an LLC, a separate account becomes even more important because mixing personal and business funds can undermine the separation you’re trying to create.

Practical Invoicing Tips for Getting Paid Faster

No matter your business structure, these habits make invoicing smoother and help you get paid on time:

Invoice Immediately After Delivering Work

Delays in invoicing often lead to delays in payment. Send the invoice as soon as the agreed milestone is delivered or the billing period ends.

Use Clear Line Items

Vague invoices trigger questions and slow approvals. Be specific enough that the client can match the invoice to the project.

Set Due Dates (Not Just “Net 30”)

Include an actual due date on the invoice. For example: “Due February 15, 2026.” This removes ambiguity and makes it easier for the client to schedule payment.

Send Friendly Reminders

Many late payments are simply forgotten. A polite reminder a few days before the due date and another shortly after can dramatically improve on-time payments.

Offer Convenient Payment Options

When a client can pay instantly by card or bank transfer, you reduce the chance that payment gets stuck in someone’s “do later” pile.

Track Invoice Status

Know which invoices are sent, viewed, paid, or overdue. Tracking helps you follow up confidently and maintain healthy cash flow.

How invoice24 Fits In When You’re Invoicing Without a Business Entity

If you’re invoicing clients without an LLC, the goal is simple: look professional, keep your records clean, and get paid without headaches. invoice24 is built for that workflow, whether you’re billing as an individual or under a brand name.

With invoice24, you can create polished invoices with the fields clients expect, customize payment terms, include clear line items, track who owes what, and stay organized as you grow. You don’t need to “wait until you form a company” to invoice properly—using an invoicing tool early can help you build good habits from your first client onward.

Key Takeaways

You can invoice clients in the US without forming an LLC or corporation. Most people start as sole proprietors by default and invoice using their legal name, sometimes alongside a brand name. Clients may request compliance items like a W-9, and you can usually provide those as an individual. The more important considerations are taxes, recordkeeping, and liability.

If you want to keep things simple, start invoicing professionally right away: include clear invoice details, payment terms, and payment instructions, and use a consistent system to track what’s been paid and what’s overdue. As your income grows or your risk increases, you can decide whether forming an LLC makes sense for your situation.

Until then, you don’t need a “formal business structure” to get started—you just need to invoice clearly, get paid reliably, and stay organized. That’s exactly what a tool like invoice24 is designed to support.