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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 serves as a tax identification number akin to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It is essential to close your EIN to prevent future tax filings, payments, or obligations tied to an inactive business and to reduce the risk of fraud, as leaving accounts open could potentially allow for fraudulent activities.
