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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 tax identification number for various business structures, such as sole proprietorships, LLCs, or corporations, similar to a social security number for individuals. It is important to close the EIN to avoid future tax filings, payments, or obligations after the business ceases to exist. Additionally, completing this process helps prevent potential fraud associated with leaving accounts open, which could be exploited by others.
