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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. The EIN serves as a tax identification number, akin to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It's crucial to close the EIN to avoid future tax filings, payments, and potential fraud associated with an inactive business. This step helps ensure that there are no upcoming obligations tied to a business that no longer exists and reduces the risk of fraudulent activities linked to open accounts.
