Can I invoice clients without having a business or LLC in the US?

Can you invoice clients in the US without forming a business or LLC?

Yes—many people in the United States invoice clients without having a formal business entity like an LLC or corporation. If you’re doing independent work (freelancing, consulting, contracting, gig work, creative services, tutoring, software development, design, marketing, virtual assistance, home services, and more), you can generally send invoices as an individual and get paid. In practice, you may be operating as a “sole proprietor” by default. That’s not a special registration you must file in most cases—it’s simply what you are when you do business on your own without creating a separate legal entity.

That said, “can I invoice?” is the easy part. The more important questions are: what name do you invoice under, what information should be on the invoice, how do taxes work, do you need a business license, and when does it make sense to form an LLC anyway? This article walks you through the practical, real-world answers in plain language so you can invoice confidently, get paid faster, and avoid preventable mistakes.

What it means to invoice without a business or LLC

When people say they “don’t have a business,” they usually mean they haven’t formed a legal entity (like an LLC or corporation) and they haven’t registered a company name. But in the US, you can still legally provide services and charge for them as an individual. In many situations, you’re considered a sole proprietor, meaning your business and you are the same legal person.

As a sole proprietor, you can:

• Offer services or sell products under your personal name
• Send invoices to clients and collect payments
• Report income and expenses on your personal tax return (typically using Schedule C for business income and expenses)
• Deduct eligible business expenses if you qualify under tax rules

You typically do not need an LLC just to invoice. Clients are usually fine paying individuals, especially for freelance or project-based work. However, some larger companies have internal rules that prefer working with registered entities, or they may require extra paperwork if you’re not set up as a vendor with a business name and tax form on file.

Is it legal to invoice clients as an individual?

In general, yes. An invoice is simply a request for payment that summarizes what was provided, the cost, and the payment terms. There is no US federal law that says you must have an LLC to send an invoice. The legality usually depends on what you’re doing (your industry), where you’re doing it (state and local rules), and whether you’re complying with tax and licensing requirements that apply to your specific work.

The most common situation is straightforward: you performed a service, your client agreed to pay, and you send an invoice. That’s normal commerce. The invoice doesn’t “create” a business entity; it documents a transaction.

Where people get into trouble is not because they invoiced without an LLC, but because they accidentally ignore licensing rules, mis-handle sales tax, misclassify themselves, or fail to track income for taxes.

Do you need an EIN to invoice clients?

No, you usually don’t need an Employer Identification Number (EIN) just to invoice. As a sole proprietor with no employees, you can often use your Social Security Number (SSN) for tax forms when necessary. However, many freelancers prefer to get an EIN anyway because it allows them to avoid giving out their SSN to clients.

From a practical standpoint:

• If a client asks for a W-9, you can provide your name and SSN, or your name and EIN if you have one.
• If you want a layer of privacy, an EIN is often a simple solution.
• If you plan to hire employees, open certain business accounts, or build a more formal setup, an EIN becomes more useful.

Getting an EIN does not automatically mean you “have an LLC.” Sole proprietors can have EINs too.

What name should you put on the invoice if you don’t have a business?

If you have not registered a business name, the safest and simplest approach is to invoice under your legal name. That keeps everything consistent if a client needs tax paperwork or if there’s ever a payment dispute. Many independent contractors do exactly that.

If you want to use a brand name (like a studio name or consulting name), you may be able to do so as a “DBA” (Doing Business As), also called a “fictitious name,” “assumed name,” or “trade name” depending on your state. A DBA is not an LLC; it’s a name registration that allows you to operate under a business name while still being a sole proprietor.

Common options:

• Legal name only (e.g., “Jordan Taylor”)
• Legal name + brand name (e.g., “Jordan Taylor / Taylor Creative”)
• DBA name (e.g., “Taylor Creative”) if properly registered where required

If you plan to keep things informal, using your legal name is the most universally accepted approach.

What information should be included on an invoice?

An invoice should make it easy for your client’s accounting team (or your client personally) to approve and pay quickly. Even if you’re billing as an individual, professional invoices reduce payment delays and questions.

A clear invoice typically includes:

• Your name (or business/DBA name if applicable)
• Your address (or business address if you use one)
• Your email and/or phone number
• The client’s name and billing address
• Invoice number (unique, sequential is best)
• Invoice date
• Due date and payment terms (e.g., “Due upon receipt,” “Net 7,” “Net 15,” “Net 30”)
• Line items describing services/products (with quantities, rates, and totals)
• Subtotal, taxes (if applicable), discounts (if applicable), and total due
• Payment methods and instructions (bank transfer details, card payments, online payment link, etc.)
• Notes section (optional) for project reference, PO number, late fee policy, or thank-you message

If you’re using invoice24, you can set up these fields once and reuse them, generate clean invoice numbers, and keep a record of what was sent and paid. That’s especially helpful if you’re invoicing without a formal business infrastructure—your invoicing system becomes your documentation hub.

Do you have to charge sales tax when invoicing?

This is where things get nuanced. Whether you must charge sales tax depends on:

• What you sell (goods vs services, and which type of services)
• Where you and your customer are located
• State and local tax rules (which vary widely)
• Whether you have “nexus” in a state (a connection that triggers tax obligations)

Many professional services are not subject to sales tax in many states, but some states tax certain services (like digital products, software access, repairs, installation, telecommunications, and others). If you sell tangible goods, sales tax is more commonly required.

If you’re unsure, treat this as an important checkpoint. Invoicing without an LLC doesn’t change sales tax obligations—those rules apply based on the transaction, not your entity type. A good workflow is to determine whether your offering is taxable in your state and your customer’s state, then configure your invoice templates accordingly.

Will clients require a W-9 if you’re not an LLC?

Many US clients will ask independent contractors to submit a W-9. This form provides your legal name and taxpayer identification number (SSN or EIN) so the client can report payments if required. If a client pays you $600 or more during the year for certain services, they may issue you a 1099 form (rules and thresholds can change, but this is a common benchmark people encounter).

Not having an LLC doesn’t prevent you from filling out a W-9. Individuals fill it out all the time. In fact, it’s common for first-time freelancers to start as sole proprietors and provide a W-9 under their personal name.

If a client asks for a W-9 and you’re concerned about sharing your SSN, consider obtaining an EIN so you can use that instead, while still invoicing as a sole proprietor.

How taxes work when you invoice without an LLC

When you invoice and get paid as an individual, the money you earn is generally considered self-employment income (unless you’re an employee, which is a different relationship). Self-employment income typically requires you to handle your own taxes—there’s no employer withholding income tax and payroll taxes for you.

Key concepts to understand:

• You are responsible for tracking income and expenses.
• You may need to pay estimated taxes during the year, rather than waiting until you file your annual return.
• You may owe self-employment tax (which generally covers Social Security and Medicare contributions) in addition to income tax.

The good news is that you can often deduct ordinary and necessary business expenses associated with earning that income. Common categories include software subscriptions, equipment, supplies, professional services, marketing, business travel, a portion of phone/internet (if used for business), and potentially a home office deduction if you meet the criteria.

The best habit you can build is keeping your invoicing and expense tracking organized from day one. Even if you stay as a sole proprietor, clean records make tax time easier and can help you defend deductions if ever questioned.

Do you need a separate business bank account?

You don’t always need a separate business bank account as a sole proprietor, but it’s highly recommended. Mixing personal and business transactions can make it hard to track income, verify expenses, and understand profitability.

Separating finances helps you:

• Track what you actually earned from client work
• Identify deductible expenses more easily
• Avoid missing income or overstating expenses
• Look more professional when receiving payments
• Prepare for a future LLC or business structure if you decide to upgrade later

Some banks allow sole proprietors to open accounts under their personal name (sometimes with a DBA if you have one). Even if you simply open a second personal checking account dedicated to business activity, it can be a major step forward.

Do you need a business license to invoice?

Sometimes. Business licensing is mostly handled at the state, county, and city level, and requirements vary based on your location and the type of work you do. Some cities require a basic business license (sometimes called a business tax certificate) even for home-based freelancers. Certain professions require specific licenses or certifications regardless of whether you have an LLC.

Examples where licensing is common:

• Contractors, electricians, plumbers, and certain trades
• Childcare and tutoring in some contexts
• Health and wellness services (depending on scope)
• Food-related businesses (catering, baked goods, etc.)
• Real estate, insurance, and regulated professional services

Invoicing does not replace licensing requirements. If your work requires a license, you should have it whether you invoice as an individual or as an LLC.

When does it make sense to form an LLC?

If you can invoice without an LLC, why do people form one? The biggest reasons are liability protection, credibility with certain clients, and clearer separation between personal and business affairs. But it’s not automatically the best move for everyone on day one.

Common reasons to consider an LLC:

• You are taking on projects with higher financial or legal risk (bigger contracts, higher exposure).
• You work in an area where liability concerns are real (for example, advice-driven services, events, physical work, or managing client data).
• You want a formal business name without using a DBA approach.
• Your clients prefer contracting with business entities and vendor onboarding is easier with an LLC.
• You want clearer boundaries between personal and business finances and identity.

However, an LLC is not a magic shield. You still need contracts, good practices, and (often) insurance. An LLC can reduce certain risks, but it won’t protect you from everything, especially if you personally do something negligent or fraudulent. Also, LLCs come with costs and maintenance: state filing fees, annual reports, and other administrative tasks.

A practical approach many people take is:

• Start invoicing as a sole proprietor (fast and simple).
• Build steady income and validate the service offering.
• Form an LLC if and when the benefits outweigh the costs.

What about invoicing clients outside your state—or outside the US?

You can invoice clients in other states and even other countries without having an LLC, but there are a few extra considerations:

• State tax rules: You may create tax obligations in other states depending on how and where you work, especially if you physically travel there or have significant business activity there.
• Sales tax and digital tax rules: For goods or taxable services, cross-state sales may create tax obligations based on where the customer is located.
• International payments: You may need to consider payment methods (wire transfer fees, currency conversion), and clients may request extra documentation.

For many freelancers who deliver digital services remotely, invoicing out-of-state is routine. The main key is keeping good records and using a professional invoice that clearly states the scope, dates, and totals.

How to look professional without an LLC

You don’t need an LLC to look established. Professionalism is mostly about clarity, consistency, and reliability. Here are simple ways to upgrade your presence immediately:

• Use a consistent invoice template with a logo or clean branding.
• Use unique invoice numbers and keep a clear paper trail.
• Include payment terms and accepted payment methods on every invoice.
• Send invoices promptly and follow up politely when overdue.
• Use written agreements (even simple ones) to define scope and payment terms.
• Keep client communication in writing and store project details.

Invoice24 supports the practical pieces that matter: creating professional invoices, tracking statuses (sent, viewed, paid), organizing clients, and keeping your documents in one place so you can operate like a business even if you haven’t formed one.

What to put in your payment terms to avoid late payments

Late payments aren’t just frustrating—they disrupt your cash flow. Without a formal business structure, your time and financial stability are even more important. The solution is not complicated: clear payment terms and consistent follow-up.

Consider including:

• Due date: “Due on February 15, 2026” (specific is better than vague).
• Payment term: “Net 14” or “Due upon receipt.”
• Late fee policy (optional): “A late fee of X% applies after Y days past due.” Only include this if you intend to enforce it and it is allowed in your context.
• Deposit or milestone billing: For larger projects, invoice in phases rather than waiting until the end.

Also consider adding your preferred payment methods. The more friction you remove, the faster you get paid.

How to protect yourself when you’re not an LLC

Even if you eventually form an LLC, you’ll still want basic protections in place. As a sole proprietor, these are especially important because your personal and business liabilities are closely linked.

Smart protections include:

• Written agreements: Define scope, price, timelines, revision limits, deliverables, and what happens if the project changes.
• Clear invoicing: Invoices should match the agreement and list what you provided.
• Proof of work: Save emails, files, time logs, and acceptance messages.
• Upfront deposits: Many freelancers charge a portion before starting work.
• Insurance: Depending on your field, professional liability insurance or general liability insurance may be worth exploring.
• Client screening: If a potential client is vague about scope, refuses to sign anything, or is evasive about payment methods, that’s a signal to proceed carefully.

An invoice is not a contract on its own. It’s best used alongside a written agreement, even if that agreement is a simple document outlining the basics.

Common mistakes to avoid when invoicing without a business entity

Most invoicing problems come from small oversights. Here are common mistakes and how to avoid them:

• No invoice number: Makes tracking and client accounting harder. Always use a unique number.
• Unclear scope: “Consulting” is vague. Add detail like date ranges, hours, or deliverables.
• Missing due date: Leads to confusion and delays. Include a clear due date and payment terms.
• Inconsistent names: If you sometimes invoice as a brand and sometimes as your legal name, clients may question who they’re paying. Be consistent.
• Forgetting taxes: Even if you don’t charge sales tax, you still need to set aside income for federal and state taxes if applicable.
• Mixing personal and business spending: Makes bookkeeping difficult and can cause missed deductions or reporting errors.
• No follow-up process: Late invoices don’t resolve themselves. Set reminders and follow up professionally.

Sample wording you can use on invoices and emails

If you want to sound professional without overcomplicating things, here are some simple phrases you can use:

Invoice note: “Thank you for your business. Please include the invoice number with your payment.”

Payment terms: “Payment due within 14 days of invoice date (Net 14).”

Late payment reminder: “Hi [Client Name], I’m following up on invoice #1023, which was due on [Due Date]. Please let me know if you have any questions or if payment is scheduled.”

Milestone billing line item: “Project deposit (50% to begin work)” or “Milestone 2 payment: Delivery of draft v1”

These small details reduce friction and make it easier for clients to process your invoice quickly.

So, can you invoice clients without an LLC in the US?

In most cases, yes. You can invoice as an individual, and many freelancers and independent contractors do exactly that—especially when they’re starting out. The key is to invoice clearly and professionally, keep clean records, and understand the few areas where rules can vary, such as local business licensing and sales tax.

If you want a simple checklist, here’s a practical starting point:

• Invoice under your legal name (or a properly registered DBA).
• Use professional invoice formatting with invoice numbers, due dates, and line items.
• Be ready to provide a W-9 if asked.
• Track income and expenses for taxes, and consider estimated payments if needed.
• Consider an EIN if you want to avoid sharing your SSN.
• Separate finances if possible, even with a dedicated account for business activity.
• Use written agreements for projects, especially larger ones.

Invoice24 makes this process easier by helping you create polished invoices, manage clients, track what’s due, and keep your records organized. Whether you’re invoicing as a sole proprietor today or running an LLC later, the fundamentals of getting paid on time are the same: clarity, consistency, and a system you can rely on.

FAQ: quick answers about invoicing without an LLC

Can I invoice clients using only my name?
Yes. Many independent contractors invoice using their legal name and contact details.

Can I use a brand name if I’m not an LLC?
Often yes, but you may need to register a DBA depending on your state and local rules. If you haven’t registered anything, using your legal name is the simplest option.

Will clients refuse to pay me if I don’t have a company?
Most clients won’t mind. Some larger companies may have vendor onboarding requirements or prefer entities, but plenty will work with individuals as long as paperwork and invoices are clean.

Do I need to add “Sole Proprietor” on the invoice?
Usually not. It’s optional. Your name and details are typically enough.

Do I need to charge tax on my invoices?
It depends on what you sell and the tax rules where you and your customer are located. Many services are not taxed in many states, but some are. Check your situation carefully.

Should I form an LLC right away?
Not necessarily. Many people start as sole proprietors, then form an LLC when revenue grows, risk increases, or client requirements make it beneficial.