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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, and can be obtained for various business structures like sole proprietorships, LLCs, or corporations. When winding down a business, it’s important to close the EIN to avoid future tax filings, payments, or obligations that may arise even after the business is no longer operational. Additionally, this closure helps prevent potential fraud by reducing the risk of leaving accounts open that could be exploited.
