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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 for various business structures, such as sole proprietorships, LLCs, or corporations. It functions similarly to a social security number for individuals. As part of the business closure, it's important to close the EIN to prevent future filings, payments, or taxes from being due, even after the business has ceased operations. Additionally, closing the EIN helps mitigate the risk of potential fraud that could arise if accounts remain open.
