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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your EIN (Employer Identification Number) with the IRS when shutting down a business. An EIN serves as a tax identification number, similar to a social security number for individuals. Whether you acquired your EIN as a sole proprietorship, LLC, or corporation, it’s important to properly close your accounts to avoid future filings, payments, or taxes due after the business has ceased operations. Additionally, closing your EIN helps prevent potential fraud, as open accounts could be exploited by others.
