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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. The EIN serves as a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations, similar to a social security number for individuals. It is important to formally close your EIN to avoid future filings, payments, or taxes, and to mitigate the risk of potential fraud that could occur if accounts remain open. This step is crucial in ensuring all aspects of the business are concluded properly and securely.
