Do i need to be a tax registered company to give an invoice?

Question

Hello

I am a graphic designer, i design websites, leaflets, business cards, logs etc. But i do this privately because i dont get regular work; therefore i am not tax registered.

one of my client has asked for an invoice. because he needs show where he is spending his money. (something like that)

i need to know if i need to be a tax registered company to give out an invoice?

THANKS!

Answer 1

No, anyone can issue an invoice.

Your client will claim it as an expense and it may be spotted by HMRC (or IRS) which will lead them to you.

So register now.

Answer 2

They do have a right to request you tax id number.  That is for many reasons.  If they deduct the income, the government wants to make sure that the recipient reports the income.  The other reason is to make sure the person recieving the money is legally in the United States.

If you do this as a sole proprietor, then you can use your social security number.  However, it is better to get a tax id number for the business. That protects you from identity theft. In many states, you also are required to have a business license.