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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 functions as a business's tax identification number, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. Closing your EIN is crucial to avoid future filings, payments, or taxes, even after the business is no longer operational. Additionally, canceling the EIN helps prevent potential fraud, as maintaining open accounts may lead to unauthorized activities. It is essential to take the necessary steps to ensure everything is properly closed.
