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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 businesses, similar to a social security number for individuals. Whether obtained as a sole proprietorship, LLC, or corporation, closing your EIN is essential to avoid future filings, payments, or taxes after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain open. It is an important step in ensuring that all business-related obligations are resolved.
