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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an 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, applicable to sole proprietorships, LLCs, and corporations. As business owners wind down operations, it’s essential to close the EIN to avoid future filings, payments, or taxes associated with a non-existent business, and to mitigate the risk of potential fraud from unanswered accounts. Closing the EIN is an important step in the business dissolution process.
