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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your EIN with the IRS when shutting down a business. An Employer Identification Number (EIN) functions like a Social Security number for businesses and serves as their tax identification number, whether for a sole proprietorship, LLC, or corporation. It's important to close your EIN to avoid any future filings, payments, or taxes associated with a non-existing business. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow someone to misuse the information. Proper closure ensures that all aspects of your business are finalized.
