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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, similar to a social security number for individuals, and may have been issued to various types of business entities, such as sole proprietorships, LLCs, or corporations. It is essential to close your EIN to avoid future tax filings, payments, or liabilities for a non-existent business and to minimize the risk of fraud. Keeping accounts open can lead to unauthorized use, so properly closing them is a crucial step in the business shutdown process.
