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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN acts as a tax identification number, similar to a social security number for individuals, and is applicable for various business types including sole proprietorships, LLCs, and corporations. It is essential to close your EIN to avoid future filings, payments, or taxes due even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain active and accessible.
