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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an EIN (Employer Identification Number) with the IRS when shutting down a business. An EIN serves as a tax identification number, similar to a social security number for individuals, and can be obtained by various business structures like sole proprietorships, LLCs, or corporations. When closing a business, it's important to follow this process to avoid future filings, payments, or taxes that may arise even after the business has ceased operations. Additionally, closing accounts helps to prevent potential fraud that could occur if accounts remain open.
