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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 tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. It's essential to close the EIN to avoid future filings, payments, or taxes due after the business is no longer operational. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain open and accessible. Properly managing this step is crucial to ensure a complete business shutdown.
