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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN, often referred to as a tax identification number, functions similarly to a social security number for an individual. It is essential for various business structures, such as sole proprietorships, LLCs, or corporations. Properly closing your EIN is crucial to avoid future filings, payments, or tax liabilities after the business has ceased operations. Additionally, it helps prevent potential fraud by ensuring that there are no open accounts that could be exploited.
