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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 businesses, similar to a social security number for individuals. It is essential for sole proprietorships, LLCs, and corporations. When closing your business, it is important to close your EIN to avoid future filings, payments, or taxes that may arise even after the business is no longer in operation. Additionally, closing your EIN can help prevent potential fraud by ensuring that no accounts remain open, which could be exploited by others.
