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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 for businesses, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. It is essential to close the EIN to avoid any future filing requirements, payments, or taxes, even after the business is no longer operational. Additionally, closing accounts can help prevent potential fraud since leaving accounts open could allow someone to exploit the situation.
