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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 various business structures, similar to a social security number for individuals. When closing your business, it's essential to formally close your EIN to avoid future tax filings, payments, or potential fraud, since leaving accounts open could enable unauthorized use. This ensures that your business's financial obligations are settled, and minimizes the risk of identity theft or fraud related to the inactive business.
