Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique, nine-digit tax ID issued by the IRS to identify a business for federal tax purposes. It functions like a Social Security Number for your company.

For NYC home improvement contractors, the EIN is required on license applications, contracts, and other official documents. It’s used for payroll taxes, business banking, hiring employees, and filing federal returns. Contractors typically obtain an EIN during business formation—it’s mandatory for LLCs, corporations, partnerships, and any sole proprietor who hires workers or elects to operate under a separate business identity.