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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 business's tax identification number, akin to a social security number for individuals, and is required for various business entities like sole proprietorships, LLCs, and corporations. When closing a business, it’s important to close the EIN to avoid future tax obligations, filings, or payments related to a non-existent business. Additionally, closing the EIN helps prevent potential fraud by ensuring that accounts are not left open and vulnerable to misuse.
