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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 the tax identification number for a business, similar to a social security number for individuals. Whether the business is a sole proprietorship, LLC, or corporation, it's essential to close the EIN to avoid future filings, payments, or taxes that could arise even after the business ceases to exist. Additionally, closing accounts helps prevent potential fraud, as leaving accounts open could expose them to unauthorized use.
