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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 a business, similar to a social security number for an individual, and can be obtained by sole proprietorships, LLCs, or corporations. It is essential to close your EIN to avoid future filings, payments, or taxes associated with a non-existent business. Closing the EIN also mitigates the risk of fraud, as leaving accounts open may allow others to exploit the situation.
