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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 akin to a social security number for individuals. When closing a business, it’s essential to officially close the EIN to avoid future tax filings, payments, or potential fraud stemming from leaving accounts open. This step helps ensure that no obligations remain and reduces the risk of identity theft or misuse of the business's information.
