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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions like a social security number for companies, serving as their tax identification number. Whether obtained as a sole proprietorship, LLC, or corporation, it's important to properly close the EIN to avoid future filings, payments, or tax obligations after the business ceases to exist. This closure also helps prevent potential fraud, as inactive accounts left open could be exploited by others.
