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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 business's tax identification number, similar to a social security number for individuals, and is applicable to sole proprietorships, LLCs, and corporations. It is essential to officially close the EIN to avoid future filings, payments, or tax obligations that could persist even after the business is no longer operating. Additionally, closing the EIN helps prevent the potential for fraud that could occur if accounts remain open.
