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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 for a business, similar to a Social Security number for individuals. Whether obtained as a sole proprietorship, LLC, or corporation, it’s important to address the EIN while closing a business to avoid future tax filings, payments, or obligations that could arise even after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud by ensuring that no open accounts can be exploited by others.