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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 similar to a social security number for individuals and is essential for businesses like sole proprietorships, LLCs, and corporations. As part of closing your business, it is important to cancel your EIN to avoid any future filings, payments, or taxes that could arise even after the business has ceased operations. Additionally, closing your EIN helps prevent potential fraud, as leaving accounts open could enable someone to exploit the situation.
