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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 a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. It is essential to close the EIN to avoid any future tax filings, payments, or liabilities associated with the business, even after its closure. Additionally, closing the EIN helps prevent potential fraud by ensuring no open accounts remain that could be exploited.
