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In this tutorial, attorney Elizabeth Potts Weinstein explains the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions as a tax identification number and is comparable to a social security number for individuals. It can be obtained by sole proprietors, LLCs, or corporations. When closing a business, it is important to cancel the EIN to avoid future tax filings, payments, or obligations. This action not only ensures that no debts accrue after the business is closed but also serves as a preventive measure against potential fraud that could occur if accounts remain open.
