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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 is a tax identification number for businesses, similar to a social security number for individuals, and is applicable to sole proprietorships, LLCs, and corporations. It's important to close the EIN to avoid future filings, payments, or taxes that could arise even after the business ceases to exist. Additionally, closing the EIN can help prevent potential fraud by reducing the risk of someone misusing open accounts.
