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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions as a tax identification number, similar to a social security number for individuals, and is applicable whether you're a sole proprietorship, LLC, or corporation. It's essential to close the EIN to avoid future filings, payments, or taxes once the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow others to exploit them. Ensuring everything is closed properly is a critical step in the business shutdown process.
