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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS, particularly relevant for those shutting down their businesses. An EIN serves as a tax identification number, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. When closing a business, it is essential to formally close the EIN to avoid future tax filings, payments, or liabilities, despite the business no longer operating. Additionally, closing the EIN can help prevent potential fraud, as leaving accounts open may expose them to unauthorized activities.
