By Jeff Burt, founder of Invoice Goat.
The maker runs in your browser. You don't sign in, and there's no Word file to download and fix up.
No sales tax line on the example? That's Florida. On a home repair billed as time and materials, you pay the tax on materials at the store and “should not charge tax to the customer,” says the Florida Department of Revenue, and Florida's tax rule adds that it holds even with materials on their own lines. The Tax box starts ticked on each new line, so untick it on every line for a job like this. In any other state, ask your revenue department.
How California, Arizona and Florida Count a Job
Each state draws its line on everything you charge for the job, not just your labor. Materials you bill at cost count.
| State | The job total | What counts |
|---|---|---|
| California | Less than $1,000 | Labor, materials and all other items |
| Arizona | Less than $1,000 | The same, leaving out certain plug-in electrical fixtures and appliances |
| Florida | Less than $2,500 | Same as California: labor, materials and all other items |
All three also want the work to be small, which the laws call “casual” or “minor.” Florida's exemption only gets you out of the state license. A county or city may have its own rules for handymen.
None of these laws mentions visits. California's and Arizona's say “one undertaking or project by one or more contracts.” The safe reading is that five fixes for one customer on one visit are one project.
You can't split a job to get under the line, either. California takes the exemption away when a job is divided into contracts under $1,000 “for the purpose of evasion of this chapter or otherwise.” Arizona's law uses the same words, and Florida's has its own version at $2,500.
Say you do $1,400 of interior door and trim work on a job that needs no permit. Bill it as two $700 invoices and California and Arizona still count one $1,400 job, over the $1,000 line in both. Split invoices look like a split job. (In Florida, $1,400 is under the line either way.)
When the Customer Says, “While You're Here…”
You've fixed the lockset, and the customer asks if you could rehang the closet door too. That extra is part of the same visit. It goes on the same invoice and adds to the same total.
So add it up before you start. If the extra takes the total to your state's line or over it, the whole job is over, not just the extra. Tell the customer first. Then turn the extra down, or point them to a licensed contractor for it. Don't move it to a second invoice to make it fit.
When the extra fits, add it in Invoice Goat. The closet door goes on the invoice, and the quote stays exactly as you sent it, so after the job you can compare the two.
Jobs That Need a License Even When the Total Is Small
Watch for these four.
- A building permit. In California and Arizona, work that needs a building permit isn't exempt. California's licensing board says a permit requirement “of any kind” means you need a license, even under $1,000.
- Hired help. In California, the exemption ends when you hire anyone to do the work or help with it.
- Gas and fire safety. In Arizona, work that connects to natural gas, propane or other fuel is never exempt, and neither is fire safety work.
- Advertising. In California and Arizona, an ad for small jobs has to say you're not licensed (Arizona wants the words “not a licensed contractor”). Florida's exemption doesn't cover anyone who advertises as a contractor. That's about your ads and cards, not your invoice.
A job that needed a license can also be hard to get paid for. If that's where you are, read what to do when a customer won't pay.
This is our reading of three state laws, not legal advice. If you're not sure about a job, ask your state's contractor licensing board before you start.
Bill the Next Visit in Invoice Goat
Hit “Start a Free Invoice in Invoice Goat” above and this visit moves into the app, lines and notes included. Save your usual jobs and rates in the Price Book, and the next drywall patch comes off a list instead of out of your head. Add before and after photos to the online invoice, and your customer sees the hole is gone.
Writing up the jobs before you start? The work order template lists them for your customer to sign off, and the quote maker prices them. How to invoice as a contractor covers the rest, from deposits to late payments.
Questions
How do I write an invoice for a handyman job?
Put the whole visit on one invoice. Give each task its own labor line, hours times your rate or a flat price, then list the materials. If you hold a license, put the number in the notes with how to pay you.
Should I list labor and materials separately?
Yes, on the invoice: your customer sees what they paid for. Be careful with quotes in Florida, though. A contract that itemizes and prices every material before work starts can be a retail sale plus installation, and then you charge tax on those materials.