How to invoice in Illinois

Licences by trade

Illinois does not issue a general contractor licence. The state licenses plumbers through the Department of Public Health and roofing contractors through the Department of Financial and Professional Regulation. Electricians are generally licensed by cities, and Chicago has its own licensing for several trades.

If you hold one of these, put the number on invoices and estimates. In Paylark, choose Illinois and the licence label reads “License / registration #”, which you can change to “Plumbing licence #” or any name you like.

The Home Repair and Remodeling Act

Illinois has a Home Repair and Remodeling Act that sets rules for contracts with homeowners above a modest dollar amount, including written contracts and a consumer information booklet from the Attorney General. The Attorney General’s office has the current thresholds and the booklet. We do not repeat specifics here: check local rules and read the booklet before your first residential contract.

Sales tax and the local layer

Illinois’s state sales tax is 6.25 percent, and counties, cities and transit districts add to it, so the rate where you work can differ a lot from the next town. Services are generally not taxed, but sales of materials can be, and the Department of Revenue treats contractors who build on real property differently from those who sell parts.

If you work in Chicago, check the city’s business licensing requirements and local taxes on top of state rules.

Registering for tax and the serviceman rules

Illinois sellers register with the Department of Revenue through its MyTax Illinois portal. The state’s sales tax on goods is called the Retailers’ Occupation Tax, and a separate Service Occupation Tax applies to service providers who hand over parts or materials as part of the job, so a plumber who installs a fixture can be treated differently from a shop that only sells it.

Which rule fits you depends on how you bill, and the Department of Revenue has guidance for service providers who transfer tangible items. The practical advice is to list parts and labor on separate lines so whichever method you use is easy to follow. Keep each invoice, and keep exemption certificates for customers who claim them.

On the invoice

• Business name, address, phone and any licence number.
• The customer and the address of the job.
• Labor and materials on separate lines.
• Tax on its own line when it applies.
• Due date and a link to pay.

Plumbers, contractors and cleaners can use the pages for plumbers, contractors and cleaners. See the pricing or try the demo. Late fees and deposits: check local rules. General information, not legal or tax advice.

Official sources

Check the rules with the people who write them:

• Illinois Department of Revenue: tax.illinois.gov
• Illinois Attorney General: illinoisattorneygeneral.gov
• Illinois Dept. of Financial and Professional Regulation: idfpr.illinois.gov

Rules change and this page is a starting point. Confirm with your state revenue department and licensing board before you rely on it.