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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 is a tax identification number for a business, similar to a social security number for individuals. It may have been obtained as a sole proprietorship, LLC, or corporation. Closing your EIN is important to avoid future tax filings, payments, or liabilities after the business is no longer operational, and to prevent potential fraud from lingering open accounts. Taking these steps ensures that all business obligations are settled properly.
