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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions similarly to a social security number for a business and serves as its tax identification number, applicable to sole proprietorships, LLCs, or corporations. When closing a business, it's important to properly close the EIN to avoid future tax filings or payments. This step is also crucial in preventing potential fraud, as leaving accounts open may expose the business to fraudulent activities. Properly managing the termination of an EIN is essential for a smooth business shutdown.
