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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 your business. An EIN serves as a tax identification number for various business structures, such as sole proprietorships, LLCs, or corporations, akin to a social security number for individuals. It's important to close your EIN to avoid future filings, payments, or taxes, despite the business no longer being operational. Additionally, closing your EIN helps prevent potential fraud, as leaving accounts open may allow individuals to exploit them for fraudulent activities.
