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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, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. Closing an EIN ensures that no further filings, payments, or taxes are due after the business ceases to exist. Additionally, it helps prevent potential fraud by closing accounts associated with the business to avoid misuse.
