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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, and can be obtained by sole proprietors, LLCs, or corporations. To properly shut down your business, it's important to close the EIN to avoid future tax filings, payments, or liabilities associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud by eliminating open accounts that could be exploited.