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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 functions as a tax identification number, akin to a social security number for businesses, applicable to sole proprietorships, LLCs, or corporations. It's essential to formally close your EIN to avoid ongoing filings, payments, or taxes owed after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud, as maintaining open accounts may allow someone to exploit the dormant business entity.
