Can I enforce a 1.5%/month late fee?

A late-fee clause is enforceable if it is reasonable (courts have upheld 1–2%/month / 12–24% APR; rates well above that may be challenged as a penalty). The clause must appear in the agreement — either the original contract or, at minimum, on the invoice itself. Some states also cap interest on commercial debt by statute. When in doubt, mirror your state's legal rate of interest (e.g. CA 10%, NY 9%).

Should I send invoices in PDF or DOCX?

PDF is the safer default — line items, totals, and rates render exactly as you set them, and clients cannot accidentally (or intentionally) edit the amount. Use DOCX only if a client specifically requests it for their workflow.

What if a client refuses to pay?

Send a follow-up at +7 days past due, a formal demand letter at +30 days, and (for US claims under $10,000 typically) consider small-claims court at +60 days. ScoutMyTool's demand-letter template covers the formal follow-up. For larger balances, talk to a lawyer before retaining a collections agency (FDCPA 15 USC §1692 governs third-party collection practices).

Can I enforce a 1.5%/month late fee?

A late-fee clause is enforceable if it is reasonable (courts have upheld 1–2%/month / 12–24% APR; rates well above that may be challenged as a penalty). The clause must appear in the agreement — either the original contract or, at minimum, on the invoice itself. Some states also cap interest on commercial debt by statute. When in doubt, mirror your state's legal rate of interest (e.g. CA 10%, NY 9%).

Should I send invoices in PDF or DOCX?

PDF is the safer default — line items, totals, and rates render exactly as you set them, and clients cannot accidentally (or intentionally) edit the amount. Use DOCX only if a client specifically requests it for their workflow.

What if a client refuses to pay?

Send a follow-up at +7 days past due, a formal demand letter at +30 days, and (for US claims under $10,000 typically) consider small-claims court at +60 days. ScoutMyTool's demand-letter template covers the formal follow-up. For larger balances, talk to a lawyer before retaining a collections agency (FDCPA 15 USC §1692 governs third-party collection practices).

Freelancer / Consultant Invoice Template

Hourly or project-based invoice tailored for freelancers and consultants — line items, tax, totals, payment terms.

Customise

Invoice number

Invoice date

Due date

Your name / business

Your address & tax ID

Client name

Client address

Project / engagement

Line items (Description | Qty/Hours | Rate)

One item per line, pipe-separated: description | quantity-or-hours | unit-rate

Tax rate (%)

Most freelance services are exempt from US sales tax. Set 0 unless your jurisdiction requires it.

Payment terms

Payment instructions

Notes (optional)

Live preview

INVOICE

Jane Doe Consulting
Sole proprietor
123 Example Lane
Anytown, USA 00000
Email: hello@example.com
Tax ID: on file

──────────────────────────────────────────────────────────────────────

Invoice #: INV-2026-001                Date: May 23, 2026
Due date:  On receipt
Project:   Q2 strategy retainer

BILL TO:
Example Client LLC
Accounts Payable
456 Example Blvd
Anycity, USA 00000

──────────────────────────────────────────────────────────────────────

DESCRIPTION                              QTY/HRS         RATE          TOTAL
──────────────────────────────────────────────────────────────────────
Strategy session (April 12)                    4      $150.00      $600.00
Written recommendations memo                   6      $150.00      $900.00
Follow-up call (April 26)                      1      $150.00      $150.00
──────────────────────────────────────────────────────────────────────

                                                Subtotal:    $1,650.00
                                          Tax (0%):           $0.00
                                                TOTAL DUE:    $1,650.00

Payment terms: Net 14. 1.5% / month late fee on past-due balances.

Payment instructions:
ACH preferred. Bank details available on request.
Alt: PayPal / Wise to hello@example.com.
Please include the invoice number in the memo.

Notes:
Thank you for your business.

About this template

A freelancer or consultant invoice differs from a goods invoice in two ways: (1) line items are usually time-and-materials (hours × rate) rather than units × unit price, and (2) payment terms commonly include late-fee clauses because there is no underlying inventory or lien to fall back on. This template covers both modes — set quantity to hours for time-based work or to a count for fixed-price deliverables. Keep the description specific: "Strategy session (April 12)" reads more legitimately to an AP department than "Consulting work." US-based freelancers earning $600+ from a single business client in a tax year will receive a 1099-NEC; including your tax ID on the invoice speeds that filing.

When to use it

Hourly consulting / advisory engagements billed in arrears
Project-based deliverables (writing, design, development) billed on milestone or completion
Retainer billing where the same monthly scope recurs
Reimbursable expenses bundled with billable time

What to include

Unique invoice number for your records (sequential helps with audits)
Issue date AND due date — leaving due date blank reads as "on receipt"
Itemised work with quantity / hours, unit rate, and line total
Late-fee + payment-terms clause (commonly Net 14 or Net 30, 1.5%/month after due)
Payment instructions: ACH / bank, PayPal / Wise, or check payee + address
Your tax ID (EIN or SSN for sole proprietors) — required on 1099-NEC filings

Frequently asked

In most US states, professional services (consulting, writing, design) are NOT subject to sales tax — but a handful (Hawaii, New Mexico, South Dakota, West Virginia) tax most services, and several others tax specific categories. Check with your state department of revenue. The template defaults to 0% so it works for the common case; set the rate manually if your jurisdiction applies one.

⚠ Legal disclaimer. This template is provided for informational purposes only and is not a substitute for legal advice from a qualified attorney. Always consult a licensed professional before using this document for any binding agreement.

Jurisdiction: United States — UCC Article 2 (where invoice covers sale of goods); state late-fee + interest statutes (Cal. Civ. Code §3289 — 10% legal rate; NY CPLR §5004 — 9% statutory rate; Tex. Fin. Code §302.002 — 6% default); IRS independent-contractor reporting thresholds (Form 1099-NEC, $600+ aggregate per payer per tax year); EU late-payment directives (2011/7/EU) where the client is in the EU; CCPA / state-level data minimisation if client is a CA resident.

Last reviewed: 2026-05

Reviewed by ScoutMyTool — consult a licensed attorney for binding use.