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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, resembling a social security number for businesses, serves as a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. It's essential to close your EIN to avoid future filings, payments, or taxes after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud by minimizing the risk of someone misusing open accounts associated with the business.
