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In this tutorial, attorney Elizabeth Potts Weinstein explains how to close or cancel your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a tax identification number for businesses, similar to a social security number for individuals, and is applicable for sole proprietorships, LLCs, or corporations. Closing the EIN is essential to avoid future filings, payments, or taxes associated with an inactive business, as well as to prevent potential fraud. By properly closing your EIN, you ensure there are no lingering obligations or risks related to your business's tax identity.
