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In this tutorial, attorney Elizabeth Potts Weinstein explains the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN, akin to a social security number for businesses, serves as a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. As part of the business closure, it’s important to formally close your EIN to avoid future filings, payments, or taxes, even after the business is no longer operating. Additionally, this step helps prevent potential fraud by reducing the risk of someone misusing the open accounts.
