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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. She explains that an EIN, similar to a social security number, serves as a tax identification number for various business structures like sole proprietorships, LLCs, or corporations. When closing a business, it’s important to officially close the EIN to avoid future filings, payments, or taxes, even after the business ceases to exist. Additionally, closing the EIN can help prevent potential fraud by ensuring there are no open accounts that could be exploited.
