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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 your business. The EIN serves as a tax identification number, similar to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, or corporations. It's essential to close your EIN to avoid future filings, payments, or taxes that may accrue even after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow someone to misuse the information for fraudulent activities.
