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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 serves as a tax identification number similar to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It's essential to formally close the EIN to avoid future tax filings, payments, or liabilities that could arise even after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud by eliminating open accounts that could be exploited.
