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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, akin to a social security number for individuals. Whether obtained as a sole proprietorship, LLC, or corporation, it is crucial to close the EIN to avoid any future tax filings, payments, or liabilities that could arise even after the business has ceased operations. Properly closing your EIN also helps prevent potential fraud by ensuring that no open accounts are left that could be exploited.
