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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, comparable to a social security number for individuals, serves as a tax identification number for businesses, whether they are sole proprietorships, LLCs, or corporations. It's important to officially close the EIN to avoid future tax filings, payments, or obligations associated with the business. This closure also helps prevent potential fraud that could occur if accounts remain open.
