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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 serves as a tax identification number for various business structures, such as sole proprietorships, LLCs, or corporations, similar to a social security number for individuals. It's important to formally close your EIN to avoid future tax filings, payments, or liabilities that could arise even after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud by ensuring that no accounts remain open that could be exploited.
