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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 your business. An EIN serves as a tax identification number for a business, similar to a Social Security number for individuals, and is applicable to various business structures, such as sole proprietorships, LLCs, and corporations. It is essential to close the EIN to avoid future filings, payments, or tax obligations after the business has ceased operations. Closing the EIN also helps prevent potential fraud, as leaving accounts open could allow others to exploit the situation.
