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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 serves as a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations, akin to a Social Security number for individuals. It's essential to close the EIN to avoid any future filings, payments, or taxes that may arise even after the business ceases to operate. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow someone to exploit the situation.
