Will my client need a W-9 and send a 1099?

US business clients generally require a W-9 up front and issue a 1099-NEC for the year if you are paid $600 or more. Send the W-9 with your first invoice.

Should I charge a late fee?

You can where your contract states it and state law permits the rate. State it in the engagement letter, not for the first time on the invoice.

Day rate for on-site and workshop work, hourly for advisory. State which and the number of units on the invoice.

Sales Tax for Consultants — What to Put on an Invoice

There is no national sales tax in the US. Whether a consultant charges tax — and on what — is decided by your state and often your county or city too. Here is how to structure the invoice so it works whichever rules apply to you.

There is no national sales tax

Sales tax in the US is set at state level, and most states let counties, cities and special districts add their own tax on top. That means two jobs a few miles apart can carry different rates, and the same work can be taxable in one state and exempt in another. Five states have no statewide general sales tax at all, though localities in one of them still levy their own.

Read the full US sales tax and invoicing guide

How it usually lands on consulting work

Most states do not tax professional consulting services, but a growing number tax specific categories such as information services, data processing or software-related consulting. The category your work falls into matters more than the fact that it is consulting, so check your state's definitions.

What a tax-ready invoice shows

A unique, sequential invoice number.
Your business name, address and, where you have one, your seller's permit or tax ID.
The customer's name and the service address — the location often decides the rate.
The invoice date and the date the work was performed.
Materials and labor on separate lines, described per line.
The taxable subtotal, the rate applied, and the tax amount as its own line.
The total due, and any exemption certificate reference if the sale is exempt.

Finding your own rate

We deliberately do not publish rates — they change, and a stale number on an invoice is your problem, not ours. Look up the combined state and local rate for the service address with your state's revenue department, and confirm whether your type of work is taxable there before you charge or omit tax.

This page is general information, not tax advice. Tax rules vary by state and locality and change over time. Verify the tax that applies to your transaction with your state revenue department or a qualified tax professional.

Worked example

Subtotal for the job: $2,661.40
Sales tax at your combined rate: you enter the rate
Total the customer pays: subtotal + tax

Any tax you collect is never your money — you are holding it for the state and remitting it on your next return.

Common questions

Will my client need a W-9 and send a 1099?: US business clients generally require a W-9 up front and issue a 1099-NEC for the year if you are paid $600 or more. Send the W-9 with your first invoice.
Should I charge a late fee?: You can where your contract states it and state law permits the rate. State it in the engagement letter, not for the first time on the invoice.
Day rate or hourly?: Day rate for on-site and workshop work, hourly for advisory. State which and the number of units on the invoice.

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Sales tax on consulting work: what goes on the invoice

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