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Attorney Elizabeth Potts Weinstein explains how to close or cancel your Employer Identification Number (EIN) with the IRS when shutting down your business. An EIN serves as a tax identification number, similar to a social security number for individuals, and can be obtained by sole proprietors, LLCs, or corporations. Closing your EIN is essential to avoid ongoing filings, payments, or taxes after your business ceases to exist. Additionally, closing your EIN helps prevent potential fraud, as leaving accounts open could enable someone to misuse your business information. Ensuring all obligations are settled is a crucial step in the business shutdown process.
