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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 as a tax identification number for businesses, akin to a social security number for individuals. Whether obtained as a sole proprietorship, LLC, or corporation, it's essential to close the EIN to avoid future filings, payments, or taxes associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow others to exploit the situation. Ensuring everything is closed properly is crucial during the business shutdown process.
