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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 business's tax identification number, akin to a social security number for individuals, and can be obtained by sole proprietors, LLCs, or corporations. It's important to close the EIN to avoid future filings, payments, or taxes related to a business that no longer exists. Closing the EIN also helps prevent potential fraud by ensuring that no open accounts are left that could be exploited.
