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Attorney Elizabeth Potts Weinstein discusses 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, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It is essential to close your EIN to avoid future filings, payments, or taxes due after the business has ceased operations. Additionally, closing accounts helps prevent potential fraud, as inactive accounts left open could be exploited by others.
