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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 a business. An EIN serves as a tax identification number for businesses, similar to a social security number for individuals. It can be obtained by various business structures, including sole proprietorships, LLCs, or corporations. As you wind down your business, it is essential to close your EIN to avoid any future filings, payments, or taxes that could accrue after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain open.
