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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. The EIN serves as a tax identification number for a business, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. It's important to close the EIN to avoid future filings, payments, or taxes after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow others to exploit the inactive business information.
