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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 acts as a tax identification number for businesses, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. It’s important to officially close the EIN to avoid any future tax filings, payments, or liabilities associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud by ensuring that accounts connected to your business are not left open and vulnerable.
