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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, akin to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It's crucial to close your EIN to avoid future filings, payments, or taxes associated with a non-existent business, as well as to prevent potential fraud. Keeping accounts open can leave you vulnerable to fraudulent activities, making it important to ensure all business-related accounts are properly closed.
