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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS for businesses shutting down. An EIN serves as a tax identification number for a business, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. Closing your EIN is essential to avoid future tax filings, payments, or obligations after the business ceases to exist. This step also helps prevent potential fraud, as leaving accounts open may expose you to risks if someone attempts to misuse the information.
