is it legal to be on a b1visa and work with clients in the USA but bill them from my home country?

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B1 visas are complicated, ill defined animals but this is not allowed. In the normal course of events, this is clearly not allowed but there's a "B1 in lieu of H-1" (or H-3) scheme where it might be. But, in 9 FAM 402.2-5(F) (U) Aliens Normally Classifiable H1 or H3

In order for an employer to be considered a 'foreign firm' the entity must have an office abroad and its payroll must be disbursed abroad

You do not have an office abroad, do you?

But also

the source of the employee’s salary must be abroad;

Which I believe is not the case.

Finally, consulting a lawyer is advised.

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