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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, or corporations. It’s important to close your EIN to avoid future tax filings, payments, or liabilities tied to your defunct business. Additionally, closing the EIN can help prevent potential fraud, as leaving accounts open may expose your business to misuse.
