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Attorney Elizabeth Potts Weinstein discusses the importance of closing or canceling an Employer Identification Number (EIN) when shutting down a business. The EIN, akin to a social security number for individuals, serves as the tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. When closing a business, it’s crucial to cancel the EIN to avoid future filings, payments, and taxes that may arise after the business has ceased operations. Additionally, closing the accounts helps in preventing potential fraud, as leaving them open could allow malicious individuals to exploit the situation.
