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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 for businesses, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. It is important to close the EIN to avoid future filings, payments, or taxes associated with a non-existent business and to minimize the risk of fraud that can occur if accounts remain open. Properly addressing the EIN is a key step in the business closure process.
