How do I add sales tax to my invoice?

Enter your state's sales tax rate in the Tax Rate (%) field under Adjustments. For example, enter 8.875 for New York or 10.25 for Chicago. The tax amount is calculated automatically.

How do I create an invoice for 1099 contract work?

Fill in your name or business name, add your services as line items, and set payment terms (Net 30 is standard). Your client will issue you a 1099-NEC at year end for payments over $600 — your invoice is your record of the work billed.

Can I invoice without an EIN?

Yes. Sole proprietors and individual freelancers can invoice using their personal name and address — no EIN required. Just enter your name in the Company / Name field. If you have an EIN, you can include it in the notes field.

Payment Terms 4 min readMarch 17, 2026

What Is Net 30? Invoice Payment Terms Explained

Payment terms tell your client exactly when you expect to be paid. Choosing the right terms can significantly reduce how long you wait for money in your account.

What Does "Net 30" Mean?

Net 30 means payment is due within 30 calendar days of the invoice date. So if you send an invoice on March 1, payment is expected by March 31.

The word "net" simply means the total amount owed — not a partial payment or deposit. "Net 30" literally means "the full amount is due in 30 days."

Common Payment Terms Compared

Term	Meaning	Best for
Due on Receipt	Pay immediately on receiving the invoice	Small one-off jobs, trusted clients
Net 7	Pay within 7 days	Small projects, quick turnaround work
Net 15	Pay within 15 days	Most freelancers and small businesses
Net 30	Pay within 30 days	Corporate clients, larger projects
Net 60	Pay within 60 days	Large enterprise clients only
Net 90	Pay within 90 days	Government contracts, large procurement

Net 30 vs Net 15 — Which Should You Use?

Most freelancers and small business owners default to Net 30 because it sounds professional and matches what large companies expect. But for most freelance work, Net 14 or Net 15 is a better choice.

Here is why:

Clients rarely pay early regardless of your terms
Net 30 effectively gives clients a month to delay payment
Shorter terms establish faster payment as the norm from the start
If a client needs Net 30, you can always accommodate — but starting at Net 15 gives you leverage

Early Payment Discounts (2/10 Net 30)

You may sometimes see terms like 2/10 Net 30. This means: "Pay within 10 days and get a 2% discount — otherwise the full amount is due in 30 days."

This can encourage faster payment but is more common in product-based businesses than freelancing. For most freelancers it is simpler to just use shorter standard terms.

Late Payment Fees

Many freelancers add a late payment clause to their invoices, such as "1.5% interest per month on overdue balances." You can include this in the Notes / Payment Instructions field of your invoice.

Whether you enforce it is up to you, but having it on the invoice often encourages timely payment and gives you a legitimate reason to follow up.

How to Add Payment Terms to Your Invoice

InvoiceNow Free lets you set payment terms directly from the invoice form. You can choose from Net 7, Net 15, Net 30, Net 60, Net 90, or Due on Receipt — the due date is calculated automatically. You can also set a custom due date.

Use our free tools: freelance invoice generator, consulting invoice generator, and hourly invoice generator — all with automatic payment term calculations.

Create an Invoice with the Right Payment Terms

Set Net 7, Net 15, Net 30 or custom terms — due date calculates automatically.

Create Free Invoice