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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 functions as a tax identification number, akin to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It’s crucial to close your EIN to avoid future filings, payments, or taxes after your business's dissolution. Additionally, closing the EIN helps prevent potential fraud from someone exploiting open accounts. Addressing your EIN is an essential step in the business shutdown process.
