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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an 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 various business structures like sole proprietorships, LLCs, or corporations. When a business is closed, it’s essential to close the EIN to avoid future filings, payments, or taxes related to a non-existent business. This action also helps prevent potential fraud that could occur if accounts remain open and accessible.
