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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. The EIN serves as a tax identification number, similar to a social security number for individuals, and can be obtained by various business entities such as sole proprietorships, LLCs, or corporations. To effectively close your business, it's important to cancel your EIN to avoid future filings, payments, or taxes that could arise even after the business is dissolved. Additionally, closing the accounts helps prevent potential fraud, as leaving them open could allow someone to misuse your information.
