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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 for businesses, similar to a Social Security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It's essential to close your EIN to avoid future filings, payments, or taxes after the business ceases operations. Closing the EIN also helps prevent potential fraud, as leaving accounts open may allow for unauthorized use of the business's information.
