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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, similar to a social security number for individuals, and is necessary for various business structures, including sole proprietorships, LLCs, and corporations. When shutting down, it is important to formally close the EIN to avoid future tax filings, payments, or obligations. This step also helps prevent potential fraud by ensuring that there are no open accounts that could be exploited after the business ceases to exist.
