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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 is a tax identification number assigned by the IRS, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It's important to formally close your EIN to avoid future filings, payments, or taxes, even after business discontinuation. This step also helps prevent potential fraud, as leaving accounts open may lead to unauthorized use of your business identity.