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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 serves as a tax identification number, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It's important to close the EIN to avoid future filings, payments, or taxes that may arise after the business ceases to exist. Additionally, canceling the EIN helps prevent potential fraud by ensuring that there are no open accounts that could be exploited.
