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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 serves as a tax identification number for businesses, similar to a social security number for individuals. Whether obtained as a sole proprietorship, LLC, or corporation, it's essential to address your EIN during the business closure. This step helps prevent future tax filings, payments, or liabilities and reduces the risk of fraud, as open accounts could be exploited. Properly closing the EIN ensures all aspects of the business shutdown are managed effectively.
