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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an EIN (Employer Identification Number) with the IRS when shutting down a business. She explains that an EIN functions similarly to a social security number but serves as a tax identification number for businesses, whether a sole proprietorship, LLC, or corporation. It’s important to properly close your EIN to avoid ongoing filings, payments, or taxes after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open can expose them to misuse.
