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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, akin to a social security number for individuals, serves as a tax identification number for businesses, applicable to sole proprietorships, LLCs, or corporations. When closing your business, it's essential to close your EIN to avoid future filings, payments, or taxes that may arise even after the business no longer exists. Additionally, closing your EIN helps prevent potential fraud that could occur if accounts remain open.
