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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, akin to a Social Security number for individuals, serves as the tax identification number for businesses, whether they're sole proprietorships, LLCs, or corporations. Closing your EIN is essential to avoid future filings, payments, or taxes owed after the business has ceased operations. Additionally, canceling your EIN helps prevent potential fraud by minimizing the risk of unauthorized use of open accounts.
