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Attorney Elizabeth Potts Weinstein discusses closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN acts as a tax identification number, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, and corporations. When closing a business, it is essential to also close the EIN to avoid future filings, payments, or taxes that may arise even after the business ceases to exist. This step is also a precaution against potential fraud, as leaving accounts open could make it easier for someone to commit fraud using your business information.
