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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 functions similarly to a social security number for individuals and serves as a tax identification number for businesses, whether a sole proprietorship, LLC, or corporation. It's important to address the EIN during the shutdown process to avoid future filings, payments, or taxes due after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud that could arise from leaving accounts open.
