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Attorney Elizabeth Potts Weinstein discusses the importance of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down your business. An EIN serves as a tax identification number for businesses, similar to a social security number for individuals, and is applicable whether you operate as a sole proprietorship, LLC, or corporation. Closing your EIN is essential to avoid future filings, payments, or taxes associated with a non-existent business. It also helps prevent potential fraud by ensuring that accounts are not left open, which could be exploited by others.
