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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 various business structures, including sole proprietorships, LLCs, and corporations, similar to a social security number for individuals. Closing your EIN is essential to avoid future filings, payments, or taxes associated with a non-existent business and to prevent potential fraud that can occur if accounts remain open.
