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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 is a tax identification number, similar to a social security number for individuals, used by various business structures such as sole proprietorships, LLCs, or corporations. It’s important to close the EIN to avoid future filings, payments, or taxes that may arise even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud by ensuring that there are no open accounts that could be exploited.
