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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 is a tax identification number for businesses, similar to a social security number for individuals. It can be obtained as a sole proprietorship, LLC, or corporation. Closing the EIN is crucial to avoid future tax filings, payments, or obligations, even after the business ceases to exist. This step also helps prevent potential fraud, as leaving accounts open could allow individuals to misuse the business's information. Overall, it's a vital task in the business closure process.
