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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 businesses, similar to a social security number for individuals, and can be issued to sole proprietorships, LLCs, or corporations. It is important to formally close your EIN to avoid future tax filings, payments, or liabilities associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud that could arise from leaving accounts open.
