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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 similar to a social security number for individuals and applies to various business structures, including sole proprietorships, LLCs, and corporations. It’s important to close the EIN to avoid future filings, payments, or taxes due for a non-existent business and to mitigate the risk of potential fraud. Properly closing your accounts ensures that they do not remain open, which could lead to unauthorized activities.
