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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 your business. The EIN serves as a tax identification number, akin to a social security number for individuals, and is necessary regardless of your business structure (sole proprietorship, LLC, or corporation). Closing the EIN is essential to avoid future filings, payments, or taxes after the business is dissolved, and it helps prevent potential fraud by keeping accounts from remaining open. The process ensures that your business obligations are fully settled.
