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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 your business. An EIN serves as a tax identification number similar to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, or corporations. It's important to close your EIN to avoid future filings, payments, or taxes that may accrue even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud by eliminating the risk of someone using an open account for fraudulent activities.
