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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a business's tax identification number, similar to a social security number for individuals, and is necessary for various business structures, including sole proprietorships, LLCs, and corporations. Closing your EIN is essential to avoid future filings, payments, or taxes after your business ceases operations. Additionally, it helps prevent potential fraud, as leaving accounts open could expose you to risks if someone were to misuse the information.