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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 similar to a social security number for individuals. It can be issued to sole proprietorships, LLCs, or corporations. Closing your EIN is essential to avoid future filings, payments, or taxes on a non-existent business and to prevent potential fraud. Keeping accounts open might expose your business to fraudulent activities, making it crucial to address your EIN when closing your business.